Braun bill aims to protect housing grant program from fraud

January 19, 2026

OLYMPIA…Concerned by whistleblower reports of fraud and nepotism in a state housing-assistance program, Senate Republican Leader John Braun has introduced legislation to help ensure taxpayer dollars allocated to the program are distributed fairly and as state law intends.

Senate Bill 6205 aims to prevent unfair insider access to housing grants from the Community Reinvestment Plan (CRP), which is intended to help people of color become homeowners. The Centralia lawmaker said his legislation also requires the state Department of Commerce to evaluate how the grants are distributed and report to the Legislature.

Under the 2022 law creating the CRP, funding allocated for housing grants is funneled through nonprofit organizations, which are expected to distribute it equitably. However, recent news reports based on a whistleblower’s records showed that a woman who received $350,000 toward the purchase of a $425,000 home in Tacoma happens to be the daughter of the person overseeing CRP housing grants for one of these nonprofits.

Others associated with the same nonprofit also received large grants, with some of that money reportedly used to pay off a recipient’s credit-card debt.

“Defrauding publicly funded programs is stealing from taxpayers,” said Braun, who serves southwest Washington’s 20th Legislative District. “If those entrusted to allocate taxpayer dollars violate that trust by awarding housing grants inappropriately, they should be held accountable. Bad actors shouldn’t be able to exploit taxpayers for their own gain.

“The intent of the CRP is to assist people with down payments and closing costs to get them into a home. It’s certainly not about helping friends and family of those holding the purse strings to cover most of a home’s total cost while leaving other applicants with no help at all. This bill would reform the program so it can benefit more of the people it was created to help.”

SB 6205 has been referred to the Senate Housing Committee and awaits a hearing.

News stories regarding misuse of CRP funding:

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