HUD launched a Fair Housing investigation into Washington's Covenant Homeownership Program for communities excluded by racially restrictive covenants
On March 24, 2026, HUD's Office of Fair Housing and Equal Opportunity launched a Fair Housing Act investigation into Washington State's Covenant Homeownership Program, a down-payment and closing-cost assistance initiative created by bipartisan 2023 state legislation to address documented racially restrictive housing covenants that had historically excluded Black, Hispanic, Native American, Pacific Islander, and Indigenous homebuyers. HUD Secretary Scott Turner announced the investigation stating "DEI is dead at HUD," asserting that a preliminary review "strongly suggests" the program violates the Fair Housing Act; a final determination remained pending. A federal judge had denied a legal challenge to the program in February 2026, finding that Washington had a compelling interest in addressing racial disparities in homeownership. Washington became the third state or local government targeted by HUD for such investigations, following prior probes into Minneapolis and Boston housing programs.
