A civil rights group has filed a federal lawsuit against Washington state over a homeownership program that provides benefits based on specific racial categories without requiring proof of actual discrimination, according to the legal complaint in Foundation Against Intolerance and Racism Inc. (FAIR) v. Walker.
The program, called the Washington Covenant Homeownership Program, was established by the Washington State Housing Finance Commission (WSHFC) in July 2024. It offers down payment and closing cost assistance in the form of a zero-interest secondary mortgage loan to eligible individuals. However, only people belonging to certain racial categories, such as black, Hispanic, Native American, Alaskan native, Native Hawaiian, Korean, or Asian Indian, are eligible for the program. Applicants must also prove that they or their ancestors lived in the state before April 1968.
The program has faced criticism for excluding individuals from races not included in the preferred categories, such as Japanese-Americans, Jewish-Americans, Arab-Americans, and Caucasian-Americans. This has raised concerns about potential violations of the Equal Protection Clause of the 14th Amendment to the U.S. Constitution.
Washington Governor Jay Inslee signed the Covenant Homeownership Act in May 2023 with the aim of addressing past injustices and reducing racial disparities in homeownership. The law directed the commission to create programs that provide assistance to achieve these goals.
Despite defending the program as a result of rigorous research into past housing discrimination in the state, the WSHFC has faced backlash for its exclusionary eligibility criteria. Critics argue that the program fails to target individuals who have personally experienced housing discrimination based on race.
The lawsuit, brought by FAIR and represented by the Pacific Legal Foundation (PLF), highlights the need for programs that truly address past discrimination without perpetuating inequalities based on race. The outcome of the legal challenge could have significant implications for housing policies and racial equality in Washington state. Please rewrite this sentence.
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