Feds Investigating WA Housing Assistance Programs for Fraud, Discrimination

WA state is a paradox.  On one hand, while piling up more regulations and roadblocks via the Building Codes Council to hinder single-family home construction, then they offer millions in loan assistance only for certain ethnic groups to help them purchase.

   Feds Investigating WA Covenant Home Ownership Program

 HUD Officials have reached out to the leaders of the WA State Housing Finance Commission about allegations they have denied certain ethnic groups assistance, while aiding others.

Housing and Urban Development Officials said they are looking at the 2023 program that was created by the Democrat-controlled legislature that was supposed to 'fix' the states “history of housing discrimination due to racially restrictive real estate covenants,” according to information obtained by The Center Square.

The WA Program Appears to be Using Race to Determine Who Gets Assistance.

Laws passed in 1968 at the Federal level forbid any kind of race-based discrimination or determination when it comes to any assistance program, whether it's housing, food or other.

According to The Center Square:

 "Real estate covenants are legally binding rules in a property deed that control how the property can be used and maintained. The Fair Housing Act prohibits restrictive covenants based on race, color, religion or national origin, and the state’s 1969 Washington Law Against Discrimination made them legally null."

 The Program Sets Racially Discriminatory Requirements

Democrats expanded the program, but said participants must have a living or deceased parent, grandparent or great-grandparent who lived in WA state before 1968, and is  “Black, Hispanic, Native American/Alaska Native, Native Hawaiian or other Pacific Islander, Korean or Asian Indian.”​

These racial group requirements are discriminatory toward any prospective client who does not fit that profile, said Federal officials.

By including the pre-1968 caviat, it appears the program is trying to "skirt" Federal law that was passed in that year.

The Feds have said, hold on, and now they are investigating.

Another Program Appears to Have Committed Fraud

The Feds are also looking into the Community Reinvestment Program, which also offers similar home ownership assistance, and found that top officials who oversaw the plan steered funds to members of their own families--a clear conflict of interest, and potentially criminal.