The bill modifies the covenant homeownership program in Washington State by adjusting the area median income threshold for eligibility, introducing loan forgiveness options, and altering the membership of the oversight committee. Specifically, it raises the income eligibility limit from 100% to 120% of the area median income for program applicants. Additionally, it allows for the full forgiveness of loans for participants with household incomes at or below 80% of the area median income after five years, provided the loan was made after the enactment of the special purpose credit program. The bill also mandates that the commission create special purpose credit programs to assist economically disadvantaged groups in obtaining down payment and closing cost assistance.

Furthermore, the oversight committee's composition is updated to include representatives from various sectors, including those who meet the eligibility criteria for the special purpose credit program and representatives from nonprofit organizations and the real estate and mortgage lending professions. The committee is tasked with overseeing the commission's activities related to the program and ensuring effective outreach and education efforts. The bill emphasizes the importance of addressing racial disparities in homeownership and requires the commission to report annually on the program's progress and effectiveness.

Statutes affected:
Original Bill: 43.181.040, 43.181.050
Substitute Bill: 43.181.040, 43.181.050
Second Substitute: 43.181.040, 43.181.050
Bill as Passed Legislature: 43.181.040, 43.181.050
Session Law: 43.181.040, 43.181.050