The bill modifies the covenant homeownership program in Washington State by adjusting the area median income threshold for eligibility, introducing loan forgiveness options, and changing the composition 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 full loan forgiveness for participants with household incomes at or below 80% of the area median income after five years, provided they meet certain conditions. The bill also mandates that the commission create special purpose credit programs aimed at reducing racial disparities in homeownership by providing down payment and closing cost assistance.

Furthermore, the oversight committee's membership is revised to include representatives from various sectors, including those who meet the eligibility criteria for the special purpose credit program, and it emphasizes the inclusion of nonprofit organizations that provide housing counseling. The committee is tasked with overseeing the commission's activities related to the program and ensuring effective outreach and education efforts. The bill outlines the structure, terms, and responsibilities of the oversight committee, including the requirement for quarterly reports on program efficacy and outreach efforts.

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