Federal News
HUD Investigates Washington State Housing Program
March 25, 2026
The U.S. Department of Housing and Urban Development (HUD) has initiated a formal investigation through its Office for Fair Housing and Equal Opportunity (FHEO) into Washington State's Covenant Homeownership Program. The inquiry focuses on potential violations of the Fair Housing Act related to the program's race-based eligibility criteria. HUD Secretary Scott Turner emphasized the department's commitment to enforcing equal opportunity laws and ensuring that state housing programs comply with federal nondiscrimination requirements.
- Procurement and program administrators in state and local housing agencies should review eligibility criteria to ensure compliance with the Fair Housing Act and avoid potential legal challenges.
- Contractors and service providers supporting housing finance commissions may see increased demand for compliance consulting, legal advisory, and program restructuring services.
- This investigation signals heightened federal scrutiny on race-based preferences in housing programs, impacting future funding and contract awards tied to fair housing compliance.
- Organizations involved in housing program design and implementation should prioritize transparent, nondiscriminatory eligibility frameworks to align with HUD enforcement priorities.
HUD will work to ensure Washington state follows the law and provides equal opportunity for all citizens seeking assistance under the Commission’s programs.
— Scott Turner, Secretary of HUD
Agencies
U.S. Department of Housing and Urban Development, Office for Fair Housing and Equal Opportunity, Washington State Housing Finance Commission