US HUD Probes Race-Based Housing Aid

The U.S. Department of Housing and Urban Development (HUD) launched an investigation on March 25 into Washington State's 'Housing Ownership Protection Program' over allegations of race-based grant payments. This investigation aims to verify the fairness of the program's subsidy distribution methods. Operated by the Washington State Housing Finance Commission, the program was established by the state legislature in 2023. Its foundation lies in the discovery of past race-restrictive housing contract practices in over 40,000 property deeds across the state.

The program provided up to $150,000 in interest-free loans for down payments and closing costs to first-time homebuyers from historically marginalized communities, including people of color. These loans were offered under terms that did not require repayment until the home was sold or refinanced. In relation to the announcement of the investigation, Secretary of Housing and Urban Development Scott Turner stated, 'Diversity, Equity, and Inclusion (DEI) is dead at HUD.' According to HUD, applicants for the program were not required to be low-income, with an income cap set at 120% of the area median income.