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 threshold for program applicants from 100% to 120% of the area median income and allows for full loan forgiveness for participants with household incomes at or below 80% of the area median income after five years. Additionally, the bill mandates that the commission create special purpose credit programs to provide down payment and closing cost assistance to economically disadvantaged groups, while also ensuring that these programs are designed with consideration of racial and economic disparities.

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 importance of including individuals from historically marginalized communities. The committee is tasked with overseeing the commission's activities related to the program, ensuring accountability, and reporting on the program's progress annually. The bill aims to enhance homeownership opportunities for disadvantaged populations and improve oversight of the program's implementation 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