OLYMPIA, WA – Washington State Senate Republican Leader John Braun has introduced legislation aimed at increasing oversight and accountability in a state housing-assistance program following whistleblower reports alleging fraud and nepotism.

Braun, a Centralia lawmaker representing the 20th Legislative District, said Senate Bill 6205 is intended to prevent unfair insider access to housing grants distributed through the Community Reinvestment Plan, or CRP. The program was created under a 2022 law to help people of color become homeowners.

Under current law, CRP housing grant funds are distributed through nonprofit organizations, which are responsible for allocating the money equitably. However, recent news reports based on records provided by a whistleblower raised concerns about how some of the funds have been awarded. According to those reports, a woman who received $350,000 toward the purchase of a $425,000 home in Tacoma is the daughter of the individual overseeing CRP housing grants for one of the participating nonprofits.

The reports also indicated that others associated with the same nonprofit received large grants, with some of the funds allegedly used to pay off personal credit-card debt.

Braun said SB 6205 would require the state Department of Commerce to evaluate how CRP housing grants are distributed and provide a report to the Legislature. He said the bill is designed to ensure the program operates as intended and that public funds are used appropriately.

“Defrauding publicly funded programs is stealing from taxpayers,” Braun said in a statement. He added that those responsible for allocating grant funds should be held accountable if they misuse their authority.

Braun said the intent of the CRP is to help eligible individuals with down payments and closing costs, not to provide preferential treatment to friends or family members of those administering the grants.

SB 6205 has been referred to the Senate Housing Committee and is awaiting a public hearing.