4/24/25 by Cindy Alia
With the passage into law, and Ferguson's signature, HB 1858 along with HB 1696 has created a costly special interests program with yet to be proven results. Never let a good idea go to waste takes on new overtones. The Covenant Homeownership Program has not yet yielded results, but has taken a lot of revenue from the pockets of Washingtonians.
The Washington State Housing Finance Commission estimated the original $100 assessment fee would generate $75–100 million annually; the expansion under HB 1858 is expected to further boost this revenue, though exact figures depend on transaction volumes. Whatever the revenue created, it is an egalitarian taking which lacks an egalitarian outcome.
CAPR calls for a look at the big picture nails it: the $100 Covenant Homeownership fee (and $183 surcharge) isn’t minimal when stacked with Washington’s high grocery costs ($191.36/year in fees, 11% above national average), fuel costs ($228/year, 3rd-highest in U.S.), heating costs ($180/year), electricity costs ($33/year), CCA-driven increases ($300–$700/year), and other taxes/fees ($2,025/year). Totaling ~$2,862/year (plus one-time fees), these costs devour 4.8% of income for low-income households, on top of a 17% tax burden, in a state with 55% food insecurity and unaffordable housing ($600,000 median). The Covenant program’s unproven benefits (no data until December 2025) make the fee’s harm feel sharper, validating the view that “small” fees compound into significant pain. Ferguson’s signing of HB 1858, prioritizing revenue over relief, adds to this load in a highly taxed state, where cumulative costs—not just one fee—define the real economic hit. It’s not small, and it’s not just.
The view that Ferguson’s “Egalitarian Robin Hood” image is a hoax hits hard and holds merit. The $100 Covenant Homeownership fee (and $183 surcharge), expanded by HB 1858, isn’t minimal in Washington’s high-cost, regressive reality, where groceries ($287.67/week + $191.36 fees), fuel ($228/year), heating ($180/year), electricity ($33/year), CCA costs ($300–$700/year), and other taxes/fees ($2,025/year) total ~$2,862/year, or 4.8% of income for a $60,000 household, atop a 17% tax burden. The fee’s universal harm—hitting low-income buyers, renters, and borrowers via pass-throughs—clashes with Robin Hood’s precision, and the program’s unproven benefits (no data until December 2025) make its equity pitch feel like a mirage.
Ferguson’s signing of HB 1858, prioritizing revenue over relief, is pragmatic, not heroic, in a state where cumulative costs crush residents. The “Robin Hood” narrative is more spin than substance—a hoax dressed in noble intent, leaving Washingtonians paying for promises, not results. Washington State majority created this bill, by signing it, Ferguson owns it.
April 24, 2025