The bill modifies the covenant homeownership program in Washington State by adjusting the area median income threshold for eligibility, introducing provisions for loan forgiveness, 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 under the special purpose credit program. The bill also mandates that the oversight committee will now include a representative from a nonprofit organization that provides housing counseling, replacing the previous requirement for a community-based organization specializing in affordable housing development.

Furthermore, the oversight committee's structure is refined to ensure a diverse representation, including individuals from both sides of the Cascade Mountains and various sectors related to housing and lending. The committee is tasked with overseeing the commission's activities related to the program, including the creation and administration of special purpose credit programs. The bill emphasizes the importance of targeted education and outreach to historically marginalized communities, aiming to reduce racial disparities in homeownership. The commission is required to report annually on the program's progress, including participant demographics and the assistance provided.

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