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The Legacy of Redlining and Racial Covenants in Western Washington

The Legacy of Redlining and Racial Covenants in Western Washington

From the early 1900s through the late 1960s, a combination of racially restrictive covenants and federal redlining systematically dictated where people of color could and could not live. These covenants legally barred Black residents from buying homes in specific Washington neighborhoods until the late 1960s. 

This Black History Month, HomeSight is looking back at the history that shaped our neighborhoods into the Seattle we know today.  

1. The Invisible Walls: Racially Restrictive Covenants (1910s–1960s) 

Long before federal maps were drawn, private developers and homeowners used racially restrictive covenants to ensure neighborhoods remained “whites only.” 

  • How They Worked: These were legal clauses written directly into property deeds. They barred anyone of “Asiatic, African or Negro blood” (and often Jewish families) from buying or renting the property. 
  • The Impact: Neighborhoods like Capitol Hill were largely built as exclusive enclaves, forcing people of color into a small, L-shaped district, largely comprising the Central District and Chinatown-International District. 

2. Mapping Inequality: Federal Redlining (1930s)

During the Great Depression, the federal Home Owners’ Loan Corporation created “Residential Security Maps” to guide mortgage lending. 

  • The “Red” Zones: Neighborhoods were color-coded by “risk.” Areas with even small populations of Black, Asian, or immigrant residents were colored red (marked “hazardous”), making it nearly impossible for residents there to get home loans. 
  • Reinforcing Segregation: While covenants were private agreements, redlining was government-backed discrimination that institutionalized the racial wealth gap by denying homeownership—the primary engine of American wealth—to non-white residents. 

3. The Fight for Change

The battle to dismantle these systems was long and hard-fought by local activists: 

  • Turning Point (1968): Three weeks after the assassination of Dr. Martin Luther King Jr., the Seattle City Council finally passed an Open Housing Ordinance, led by Sam Smith, the council’s first Black member. 
  • Closing the Door (1977): Washington State passed House Bill 323, officially outlawing redlining by financial institutions. 

4. The Shadow Today

Though these practices are now illegal, their shadow remains. Today, the very neighborhoods residents were once redlined into are displacing the communities that built them. Also, Black homeownership in King County remains significantly lower than the national average, a direct result of decades of denied equity. 

In 2023, Washington took a new step toward justice with the Covenant Homeownership Account Act, which created the Covenant Homeownership Program (CRP) to provide down payment assistance to those impacted by these historical restrictions. HomeSight offers CRP assistance. Learn more about this, and HomeSight’s other down payment assistance programs, here. 

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Did You Know …You can legally remove the racially restrictive covenants from your home’s title? (No lawyer required!)

Did You Know …You can legally remove the racially restrictive covenants from your home’s title? (No lawyer required!)

Racism isn’t history: it lurks in the deeds of more than 37,000 homeowners in King County with at least 35,000 more in other counties. Look deep in the fine print. Many Queen Anne residents have this clause in their deeds: “No person or persons of Asiatic, African or Negro blood, lineage, or extraction shall be permitted to occupy a portion of said property.” 

1. Search Your Property Records

You don’t need a lawyer to start. Most records are accessible through the county auditor or recorder’s office. 

  • Look for: ”Covenants, Conditions, and Restrictions” (CC&Rs) or “Restrictive Covenants” usually filed when the subdivision was first created. 

2. Strike the Language (Restrictive Covenant Modification)

Since 2019, Washington State law (RCW 49.60.227) provides a simple, free process to “strike” this language. 

  • The Form: You need to file a Restrictive Covenant Modification document. You can find this on your specific county’s recording page. 
  • The Process: 
    1. Attach a copy of the original document with the illegal language. 
    2. Sign the modification form in front of a notary. 
    3. Submit it to the County Auditor. Recording fees are waived for this specific action. 

3. The Covenant Homeownership Program

If you or your ancestors were directly impacted (displaced or barred) by these covenants, you may be eligible for down payment assistance or closing cost support through the Covenant Homeownership Account Act administered by the Washington State Housing Finance Commission and HomeSight. Learn more here! 

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What Dr. King knew about your bank account

What Dr. King knew about your bank account

When we celebrate Dr. Martin Luther King Jr., we often talk about his dream. But Dr. King’s dream had a very practical side: economic power. He knew that without it, true freedom is out of reach.

In the 1960s, the average first-time homebuyer was in their 20s. Today, that age has jumped to 40. Why are we waiting until our 40s?

The math has changed. It’s not that people don’t want to buy homes; it’s that the down payment has become an impossible hurdle. While living costs skyrocket past the national average, saving for 20% of nearly one million dollars (the average price of a King County home is above $830k) can feel like running a race with no finish line.

This delay robs families of decades of equity building. At HomeSight, we don’t think you should have to wait 20 extra years to start building wealth. We have tools specifically designed to help you tackle the down payment and get into a home sooner.

It’s 2026, and it’s time to reclaim the economic power Dr. King envisioned for us all. Homeownership is the #1 way to build generational wealth, and HomeSight is here to make sure you don’t have to do it alone. From homebuyer education to purchase assistance, we have the keys—you just have to turn them. Your path to ownership starts here.

Frequently Asked Questions: Building Economic Power

  1. Why does HomeSight focus so much on homeownership?

We believe homeownership is the most effective tool for building generational wealth and achieving the economic power Dr. King championed. While renting provides shelter, owning a home allows you to lock in your housing costs and build equity, an asset that grows over time and can be used to fund future dreams or pass wealth down to your children.

  1. I’m in my 30s and still renting. Am I “behind”?

Not at all. While the average age of first-time buyers has risen from the 20s to the 40s over the last several decades, our goal is to help you beat that statistic. Whether you are 25 or 55, the best time to start building your economic power is as soon as you are ready. HomeSight is here to help you accelerate that timeline.

  1. What exactly is “down payment assistance”?

The down payment is often the biggest barrier to entry. Down payment assistance (DPA) consists of programs that provide secondary loans or grants to help cover that initial cost. This allows you to purchase a home with much less cash out-of-pocket, making homeownership possible years sooner than if you were saving alone.

  1. Do I need a perfect credit score to work with HomeSight?

No. We understand that life happens. We offer homebuyer education and one-on-one coaching to help you understand your credit report, create a budget, and build a plan to get mortgage-ready. We look at your potential, not just your past.

  1. How is HomeSight different from a traditional bank?

As a Community Development Financial Institution (CDFI), our mission is the community’s success, not profit. We combine lending with deep education and specialized programs designed for those who have been historically underserved by the traditional banking system.

  1. Where do I start?

The first step is knowledge. We recommend signing up for our homebuyer education class. It’s the foundation you need to understand the process, from choosing a realtor to closing on your first home.

Your Path to Ownership: A Step-by-Step Checklist You Can Download
“You don’t have to see the whole staircase, just take the first step.” — Dr. Martin Luther King Jr.
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U-lex FAQs

U-lex faqS

Our staff answers the seven most common questions they get about U-lex Housing Cooperative.

What is a housing cooperative?

A housing cooperative, or co-op, is a type of residential community (common in east coast cities like New York) where members collectively own and manage the property. As a member, you own a share in the cooperative corporation, which grants you the right to live in a specific unit.

WHAT IS A LIMITED EQUITY CO-OP?

A limited equity co-op limits or caps the amount of equity (or ownership stake) that members can accumulate. U-lex is capped at 2% appreciation each year.

WHAT ARE THE BUYER QUALIFICATIONS FOR U-LEX?

  • Income: Buyers must earn less than 80% of Seattle’s Area Median Income (AMI) and at or above 50% AMI.
  • First-Time Buyer: Buyers must be first-time home buyers or have not owned a residence in the past three years.
  • Owner Occupancy: Buyers must live in the unit as their primary residence.

WHAT ARE MY TOTAL MONTHLY COSTS?

As a coop member you are responsible for the share price – this is comparable to a mortgage payment on a condo or house – and a monthly carrying charge. Think of the carrying charge as the co-op version of a homeownership association (HOA) fee.

If you are seeking a loan for the share price, you will need to add the monthly principal and loan’s Interest costs to get to your monthly payment.

Let’s use an example: Unit #115, a 1BR/1Bath:

$269 Share Price (loan principal & interest on a $52,932 loan: like a mortgage loan)

+ $1,671 Carrying Charge (like an HOA fee)

= $1,940 Total Monthly Home Costs

CAN I HAVE A ROOMMATE? CAN I SUBLET MY UNIT?

The owner can have a roommate but cannot sublet. The unit must be occupied by the owner. In special circumstances, the co-op board may approve an exception, but this would be temporary because it would put the co-op’s property tax exemption in jeopardy.

WHEN CAN I MOVE IN?

Construction begins November 3, 2025, and will take 18 months. Our anticipated completion date is April 15, 2026.

WHEN WILL I HAVE TO PROVIDE MY UPDATED FINANCIAL DOCUMENTATION?

You will have to provide updated financial information 120 days before closing. If we achieve Certificate of Occupancy by April 15, 2027, our counseling team will ‎contact you before Wednesday‎, ‎December‎ ‎16‎, ‎2026 to update your financial records and do another soft credit pull.

If you seek a share loan through Verity Credit Union, your loan officer will contact you 60 days before the Certificate of Occupancy is issued to finalize the loan.

U-lex Cooperative: Visual concept of the future building design
Example floor plan of a 1-bedroom unit,
Example floor plan of a 3-bedroom unit
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Meet HomeSights new board President Rebecca Bryant

Meet HomeSights new board President Rebecca Bryant

A Colorado native, political insider and avid surfer, Bryant believes HomeSight “is on the front lines” in housing.

When your father is an Antarctic explorer and both your parents are Smithsonian scientists, a strong sense of adventure and curiosity about the world might be genetic. Raised in a one-room cabin close to Red Rocks, Colorado, Rebecca Bryant shared her family’s sense of curiosity and adventure.

But law, not science, captured her Interest. Bryant said she wanted to work in Congress from a young age and first set her sights on a career in law. “I’ve always believed democracy can work well,” said Bryant. “I believe policy should help people no matter how they started in life.”

A political science major in college, Bryant’s internship at the USO in Washington, DC prepared her for a job on the staff of Washington state’s 9th District Rep. Adam Smith.

During her 10 years working for Smith, her boss was the top Democrat on the Armed Services Committee. Bryant says: “I was working with the Pentagon staff planning trips for my boss to Afghanistan, then supporting the committee staff in the ongoing priority of the Congressman’s to close Guantanamo.” Bryant compares her tenure working for Smith to the television show The West Wing. “I started as Charlie,” a young aide on the show, she said. “And ended as CJ,” the communications director.

Bryant got to know HomeSight while running the Congressman’s reelection campaign from the 9th district office, the district where HomeSight is based. “I met [HomeSight founder] Tony To while planning the first Taste of the Ninth event, the now annual event Congressman Smith holds to celebrate the diverse communities of the 9th Congressional District,” Bryant recalled. After moving back to Washington, DC in 2014, Bryant was fortunate to see To when he visited the “other Washington” to advocate for affordable housing policy and funding and quickly reconnected with To and Homesight when she moved home to Seattle in 2019.

“I saw HomeSight doing such good work and embodying everything the 9th district is,” said Bryant. “Anytime I hear about someone buying a home, I picture each of those families. I believe everyone should have the opportunity to own their home no matter what circumstances they were born into. Not that long ago, Seattle had redlining. HomeSight is such a great example of undoing historical wrongs.”

Bryant is also involved in the community development side of HomeSight’s work. “That work is in my personal DNA, but I didn’t know as much about it until I joined the board,” Bryant said.

Bryant joined the board in 2020. She now works in government affairs at Fred Hutch but keeps in touch with her old colleagues in the 9thdistrict office, recently inviting them to join her for lunch during HomeSight’s Plate of Nations restaurant promotion event this spring. 

“HomeSight is in a special place right now,” said Bryant. “We’re on the front lines of keeping people in homes, and making sure people have homes. Now, and over the next couple of years, this work matters more than ever.”

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Congratulations, Pat Montgomery, for 30 years of creating new homeowners!

Congratulations, Pat Montgomery, for 30 years of creating new homeowners!

A picture of Pat Montgomery smiling

Pat Montgomery, one of HomeSight’s three HUD-certified counselors, has been working at HomeSight for 30 years, and became a full member of the mortgage lending counseling team around 17 years ago.

When Pat stepped into the housing counselor role, she found she was helping her own neighbors. “I lived in the community where I worked,” said Pat. “Back then, more families, and lower-income families, could afford houses. It’s gotten harder for people, and we’ve got more and more people really wanting to buy.”​

Pat said the HUD certification training was rigorous and the test was daunting. “There are six steps, and hardly anybody passes the first time,” she said. But the certification is worth it, she said, because “it benefits our clients so much, and helps us help them better.”​

Pat and her colleagues “help people become great homeowners. I know the people we serve are going to be more aware. They’re not going to be silly and charge everything, they’re going to keep their debt low, and they’re going to have good savings. That’s a big deal when you’re buying a house in our area.” ​

Pat said she wishes she “had a HomeSight” before she bought her house. She enjoys helping people “overcome barriers, like a low credit score or high credit card debt,” and helping people create and achieve a plan that gets them to homeownership. ​ ​

“Start to finish, we’ve got them covered and ready to send off to lending,” said Pat. It’s a great thing to see. HomeSight has done so much for the community.”​

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Homeownership From One Generation to the Next: A HomeSight homeowner brought her son to learn about U-lex cooperative housing — and helped him buy his first home.

“Homeownership has opened doors for building generational wealth. It’s an investment in my family’s future,” said Kenya Bannister.

Kenya Bannister bought her first home through HomeSight. This spring, when she learned HomeSight was building a new housing cooperative, U-lex @Othello Square, she encouraged her now-grown son to learn more and apply.

“Homeownership has been life-changing for me,” said Bannister. “It’s given my family a stable and secure place to grow while also helping us build financial equity for the future. Emotionally, homeownership has brought pride, peace of mind, and the joy of creating lasting memories in a space that’s truly ours.”

Bannister wanted her grown son to have the same experience for his family. Intrigued by the “affordable buy-in, monthly cost, and convenience,” of U-lex, Bannister and her son attended an U-lex Meet and Greet.

At the session, Bannister was pleased to learn her family qualified for U-lex. Bannister said she felt well prepared to jump on the opportunity, based on her past experience in HomeSight’s homebuyer education classes. “The classes gave me a greater understanding of the entire process of buying a home from start to finish,” said Bannister. She was so excited about U-lex, she bought a home for her son. “It’s a great opportunity,” she said, adding: “and registration was simple.”

“We were looking for a supportive environment where our family could thrive both emotionally and academically, and where we could feel connected and empowered,” said Bannister. “U-lex offers a strong sense of community, safety, and stability – things that are very important to us. Ulex’s values align with ours, and I see it as a place where our family can truly grow and feel at home.”

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For HomeSight’s Homeownership team, the mission is personal.

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For HomeSight’s Homeownership team,
the mission is personal.

Scott Kim

HomeSight’s Director of Portfolio and Lending Operations, Scott Kim, oversees our loan portfolio, homebuyer education, and lending origination teams. What drives him?

“If I can help a few families like mine, I’ve accomplished my mission, along with HomeSight’s.”
— Scott Kim

Scott’s family immigrated to the U.S. when he was five years old. They lived in a single room for 18 months while his parents saved for an apartment deposit. After eight years of budgeting and sacrifice, they achieved homeownership.

“I can’t help but wonder how much sooner we could’ve purchased our home if we had access to an organization like HomeSight,” Kim says. Scott’s personal connection to HomeSight fuels his passion and ability to connect with clients.

“HomeSight is a unicorn in the Washington State mortgage industry. Other organizations support homeownership for low- to moderate-income borrowers, but not at HomeSight’s level. We provide $50,000, $100,000, or even over $200,000 in down-payment assistance—I don’t know of another organization in Washington State doing this.”
— Scott Kim

Scott describes his journey at HomeSight as challenging yet rewarding. One memorable project involved assisting a first-time buyer with a HomeSight development resale: guiding her through the process and handing over the keys. “The genuine appreciation and emotions I felt from the buyer were one of the most rewarding experiences of my life,” Kim says.

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HomeSight’s Director of Real Estate Development, Uche Okezie, is a Woman on a Mission to Bring Co-ops to Seattle

HomeSight’s Director of Real Estate Development, Uche Okezie, is a Woman on a Mission to Bring Co-ops to SeattlE!

It’s not a condo, and it’s not communal housing, but a co-op is a model that’s worked to provide affordable homeownership opportunity in hard-to-afford cities.

People may not be familiar with the word ‘ʔúləx̌’ – it’s the Lushootseed word for ‘gather’ – but the word ‘co-op’ should be in every Seattle homebuyer’s vocabulary, according to HomeSight’s Real Estate Development Director Uche Okezie.

Cooperative homes are common in historically expensive east-coast cities, but most Seattleites have never heard of them. However, Seattle’s changing homeownership climate played a major role in Okezie’s decision to bring the limited equity cooperative (or LEC) model to Seattle.

Since HomeSight began working to help people purchase homes 30 years ago, “things have changed in Seattle,” Okezie explained. “Land is more expensive. HomeSight typically relied on down-payment assistance to help income-qualified folks purchase homes, but there’s just not enough to cover the gap in affordability between what they can afford and what the market says they have to pay in order to purchase it.”

Okezie said an LEC provided “another pathway to provide that first level of affordability.”

Sometimes described as the ‘first rung’ of the ladder to homeownership, co-ops make everyone who is a resident in the building a part owner of the building. Co-op purchasers, said Okezie, “have bought shares that give them the right to live in their unit for however long they own their shares. It gives each household, or member, a vote in all the building operations. Whether it’s the budget, or the board of directors — who are elected co-op members – their share gives them a vote on what happens with their building and in their community, and that community is the building.”

Okezie said community is a significant difference between condo ownership and co-op ownership. “Because everybody owns the building cooperatively, they all have a vested interest in its destiny, its future, and they have the right to communicate that to their fellow members, the people with whom they share this asset,” said Okezie. “And although you are building your individual wealth with the purchase of your shares, you’re also collectively building wealth in the form of the asset that you all live in and share.”

The biggest stumbling block for buyers is unfamiliarity. “It’s just not a common model here,” said Okezie. “I would love for this to be something that was completely normalized and another homeownership option for people.”

The dream of homeownership can be realized for more people with “more co-ops, more limited equity co-ops, and more demand for these units.” Okezie wants co-op ownership to be “just as commonplace as saying: ‘I own a condo.’”

U-lex @ Othello Square has just 20 units remaining for sale to income-qualified buyers. Situated next to the light rail station at Martin Luther King Jr. Way and South Holly Park Drive, U-lex will offer 68 units affordable to families earning 80 percent or less of the area’s median income at the time of purchase. To be eligible, purchasers must meet the income requirements, be first-time homebuyers, or have not owned a home in the past three years. Learn more about U-lex here.

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Plate of Nations is Bringing Back Date Night!

Plate of Nations is Bringing Back Date Night!

With participating restaurants spanning the globe from Laos to Ethiopia, Southeast Seattle’s Restaurant Promotion Week highlights the unmatched diversity of its amazing food — and culture.

Between March 21 and April 6, western Washingtonians can emerge from a dark winter and hit the town on a 17-day culinary and cultural world tour – and they won’t have to venture beyond Seattle to do it. HomeSight’s Plate of Nations will return for its 14th year of celebrating southeast Seattle’s vibrant culinary scene, and this year, we’re inviting everyone to make their adventure a whole evening out with dinner and a show.

This year, Seattle’s most diverse restaurant week will feature around 75 independently owned restaurants that highlight the incredible cultural diversity in southeast Seattle, particularly along the Martin Luther King, Jr. corridor.

In addition, social media contests on Instagram, TikTok and Facebook leading up to the event will offer chances to win “dinner and a show” – gift cards to participating restaurants and tickets for local movie houses, music venues and theaters in southeast Seattle.  Customers can win prizes during Plate of Nations by downloading a “passport” from the Plate of Nations website, or at any participating restaurant) to record their culinary trip around the world.

Participating restaurants include neighborhood favorites as well as brand-new establishments. They include Taco City, Delish Ethiopian, Rainier BBQ, The Original Philly’s, Southtown Pie and many more.

Immigrants from around the world have settled in Rainier Valley and started businesses that provide cultural favorites for ethnic communities looking for a taste of home. Those restaurant owners are excited to welcome other customers to join in their traditions.

“Southeast Seattle is so unique,” said HomeSight’s Community Development Director Sarah Valenta. “You can walk down the street and hear dozens of languages spoken. With so many cultures represented here, our food scene has choices from all over the world, and it’s all as authentic as you can possibly get. We’re so excited to partner with southeast Seattle’s cultural institutions as well this year. It’s a real celebration of what southeast Seattle has to offer.”

The event was conceived in 2011 by former Salima owner Asari Mohamath, a Cham Muslim refugee from Vietnam. HomeSight – a nonprofit catalyst for equitable homeownership and community development in southeast Seattle – has organized Plate of Nations since its inception.

Sponsored and managed by HomeSight, Plate of Nations is co-sponsored by the Martin Luther King Business Association, Amazon, the Seattle Office of Economic Development and the Essential Southeast Seattle Collective.

Meet the woman behind Plate of Nations: Sarah Valenta

During nearly 20 years at HomeSight, Community Development Director Sarah Valenta has been a woman with a mission, a vision, and an appetite for growth.

Southeast Seattle was a different neighborhood when Sarah Valenta began her HomeSight career in community development. “Back then, the city’s goal was to fill storefronts however possible,” said Valenta. “HomeSight’s approach to community development was different. We recognized southeast Seattle was at risk for gentrification, so we set goals that prioritized anti-displacement and neighborhood retention. We collected data, did research, and involved the entire community in planning for programs and progress.”

The storefronts along Rainier Avenue filled with small business owners who lived in the community. HomeSight’s focus grew to include businesses and community members in all of Rainier Valley.

“Building generational wealth through business ownership and growth is a traditional way for people of color, immigrants, and refugees to improve their economic situation,” Valenta said. “Supporting entrepreneurship and business growth in Rainier valley helps these specific communities but we’re really lifting whole community. We’re all in this together.”

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