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The CHA Trailer Bill needs your support.

HB 1696 made it through the House Floor last week, but it was a five-plus-hour debate. Let’s let the Senate know that CHA has broad and strong support before our Wednesday, March 19, 1:30 p.m. hearing in the Senate Housing Committee. We want to see 1,000 “pro” positions before our hearing starts. Share this sign-in pro link with everyone you know. This 30-second action will be incredibly helpful.

What is The CHA Trailer Bill(HB 1696), and WHY does it need our support?

House Bill 1696, known as the Covenant Homeownership Account (CHA) Trailer Bill, is a legislative proposal in Washington State aimed at enhancing the existing Covenant Homeownership Program. This bill seeks to address historical housing discrimination by expanding homeownership opportunities for marginalized communities, particularly Black homeowners.

The CHA Trailer Bill proposes two significant changes based on recommendations from the Covenant Homeownership Program Study:

Increasing the Area Median Income (AMI) Eligibility Threshold: The bill aims to raise the AMI threshold for program eligibility from 100% to 140%. This adjustment would allow more individuals and families, especially those in higher-cost areas, to qualify for assistance, broadening homeownership access.
Introducing a Loan Forgiveness Option: For participants earning at or below 80% of the AMI, the bill proposes loan forgiveness after their loan has been outstanding for at least five years. This provision alleviates long-term financial burdens and promotes sustained homeownership among lower-income households.

Black Legacy Homeowners should consider supporting HB 1696 because it directly addresses systemic barriers that have historically impeded our access to homeownership. The bill aims to rectify past injustices and promote economic equity by expanding income eligibility and offering loan forgiveness. These measures can increase homeownership rates within our community, fostering wealth accumulation and stability. Supporting this bill aligns with efforts to create a more inclusive and equitable housing landscape in Washington State.

What is The Covenant Homeownership Act (HB 1474), and What has it accomplished so far?

The original Covenant Homeownership Act (HB 1474), enacted in 2023, established a program to provide down payment and closing cost assistance to first-time homebuyers from communities historically affected by racially restrictive real estate covenants in Washington State. The program offers interest-free loans, repayable upon sale or refinancing, with assistance covering up to 20% of the home’s cost or $150,000, plus closing costs. To qualify, applicants must be first-time homebuyers with incomes at or below the area median and have been Washington residents before 1968 or be descendants of such residents.

Since its launch on July 1, 2024, the program has facilitated the purchase of 247 homes across 20 counties, distributing a total of $27.5 million in assistance.

This initiative represents a significant step toward addressing historical housing discrimination and promoting equitable homeownership opportunities in Washington State.