Senate Bill 6167 (S-3689.1) amends existing law by changing several RCW sections (including 43.79.567, 43.185A.140, and 43.181.040) and creates a new community reinvestment account in the state treasury. It prohibits a homebuyer from accepting more than one state-funded down payment assistance loan or grant from programs established under those RCWs even if the buyer applies to multiple programs. The community reinvestment account will hold legislative appropriations, transfers, and other directed moneys that may be spent only after appropriation, and the Department of Commerce may use those funds for specified activities including economic development, legal assistance, violence intervention and prevention, reentry services, and, beginning July 1, 2025, agricultural and economic support and services for historically marginalized communities. Grant distribution from that account must be done in collaboration with “by and for community organizations,” a term to be defined by the Department of Commerce and the Office of Equity, with example communities identified for the 2025–2027 biennium. The bill also modifies housing trust fund and covenant homeownership program rules and procedures. It directs the department that administers the housing trust fund to finance affordable housing projects for low-income households with special housing needs, requires at least 30% of funds in any funding cycle to serve rural projects (with a reallocation option if sufficient rural applications are not received), and prioritizes at least 10% of funds to organizations substantially governed by people disproportionately impacted by homelessness. Eligible housing activities are listed to include down payment and closing cost assistance and a range of development, rehabilitation, and technical assistance. Administrative cost limits are set (up to 3% of certain appropriations for administrative costs and a 0.4% annual cap on departmental compliance/monitoring costs). The department is directed to contract with an unspecified commission to create special purpose credit programs that provide down payment and closing cost assistance, with contract funding limits (up to 1% for administration, up to 1% for targeted education/outreach, remainder for assistance), repayment generally required on sale, and a possible loan forgiveness provision for some low-income participants (text on forgiveness is incomplete). The commission may adopt rules and policies, must have at least one program operating by July 1, 2024, and must submit annual reports starting December 31, 2025, describing eligibility, assistance amounts, participant counts, locations, and outreach. The bill sets eligibility criteria for these programs, including income at or below 120% of area median income, first-time homebuyer status, and either being a Washington resident as of April 11, 1968 who was excluded from homeownership by racially restrictive covenants or being a descendant of such a person, with specified records that may be used as proof. Important context is missing from the extracted text: the full identities of “the department” referenced in RCW 43.185A.140 and “the commission” in RCW 43.181.040 are not specified in these excerpts, a clause referencing an action after a loan has been outstanding for at least five years is incomplete, and the loan forgiveness provision for participants at or below 80% of area median income is cut off and not fully shown. Additional sections or operative language outside these excerpts may be necessary for a complete understanding.

If passed, a household could only accept one state-funded down payment or closing-cost loan or grant, which reduces the option for buyers to stack multiple state programs. The commission must start special-purpose credit programs that provide down payment and closing-cost help to eligible first-time buyers (household income up to 120% of area median income), including Washington residents excluded from homeownership by racially restrictive covenants before April 11, 1968, and their descendants; the commission must adopt rules, begin assistance by July 1, 2024, and report annually starting December 31, 2025. The typical loan will be repaid when the house is sold, with a hinted but not fully detailed forgiveness option for lower-income participants, and some record types are listed that can prove eligibility. State agencies will get new funding and spending directions: a community reinvestment account is created for the Department of Commerce to fund economic development, legal help, violence intervention, reentry services, and—beginning July 1, 2025—agricultural and economic services for historically marginalized communities, but money must be appropriated before spent. The housing trust fund must target low-income households and special-needs projects, require at least 30% of funds per cycle go to rural projects (with a reallocation option if few rural applications exist), and prioritize at least 10% for organizations substantially governed by people disproportionately impacted by homelessness; administrative spending is capped (up to 3% for certain appropriations and 0.4% annually for compliance/monitoring), and commission contracts are limited to small percentages for administration and outreach with the remainder used for assistance. Important implementation details are missing from the excerpt—such as the exact agency names for “the department” and “the commission,” the full terms for loan forgiveness and a referenced five-year condition, and the formal definition of “by and for community organizations”—so some operational impacts and eligibility specifics remain uncertain.