On October 29, 2024, the Foundation Against Intolerance & Racism (FAIR) filed a federal lawsuit in the United States District Court for the Western District of Washington challenging the constitutionality of the Washington State Housing Finance Commission’s (the “Commission”) Covenant Homeownership Program (the “Program”). FAIR, a nonprofit organization dedicated to advancing the civil rights of all Americans, claims that the Program constitutes an unlawful violation of its members’ equal protection rights under the Fourteenth Amendment to the United States Constitution. 

The Commission’s Program offers zero-interest mortgage loans to first-time homebuyers who meet certain eligibility criteria relating to income, Washington state residency, and race, ethnicity, and skin color. Alarmingly, the Program loans are not available to certain Washington homebuyers who do not identify with one of the eligible racial or ethnic groups. Specifically, Japanese-Americans, Jewish-Americans, and Caucasian-Americans are excluded from the Program even if they meet all other eligibility criteria. 

When asked about the lawsuit, FAIR’s Executive Director, Monica Harris, said, “FAIR supports efforts to uplift those facing financial insecurity and believes homeownership should be attainable for all. However, the Constitution is clear: government-funded programs cannot exclude individuals based on race or ethnicity. We proudly oppose Washington’s unconstitutional housing program.” 

In its prayer for relief, FAIR has asked the court to declare the race-based eligibility criteria unconstitutional, issue a permanent injunction, enforce race-neutral eligibility criteria, and award attorney fees and nominal damages. 

FAIR is represented by Pacific Legal Foundation attorneys, Andrew Quinio and Chris Barnewolt.