Agreement resolves Washington State Attorney General’s review of the company’s former Community Charitable Covenant program; Hayden Homes disputes the Attorney General’s characterization of its business practices

Hayden Homes’ spirit of generosity is at the center of who the company is. Through its Give As You Go™ philosophy, Hayden Homes and its team members work to build a strong community and help neighbors lead fulfilled lives — a commitment the company says is core to why it exists.

That commitment is being tested in a way Hayden Homes did not expect, and the company wants homeowners, partners, and the public to have a clear understanding of its actions, intentions, and the values that guided them. Hayden Homes and First Story have reached an agreement with the Washington State Attorney General’s Office resolving its review of the company’s former Community Charitable Covenant, the facts of which are reflected in the Assurance of Discontinuance.

The Washington State Attorney General’s office released statements that conflict with the Assurance of Discontinuance and how the Community Charitable Covenant was administered in practice. Because that distinction matters, Hayden Homes has put together a Q&A to address those points directly.

Hayden Homes created the Community Charitable Covenant on a simple belief: neighbors helping neighbors. In Washington, the covenant has been part of Hayden Homes communities since 2006, helping ensure that as those communities grew and homes changed hands, support for local housing efforts and charitable causes remained part of the spirit of the community.

Washington law expressly authorizes charitable covenants, and Hayden Homes and First Story believe theirs was properly authorized under that law. The Attorney General’s Office reached a different interpretation of the statute. That difference in interpretation — not any wrongdoing — is what this agreement resolves.

Today, the commitment to each of these communities continues in the absence of the Community Charitable Covenant through the Give As You Go Fund™ and the Every Home Gives program. Hayden Homes announced a pledge to invest $25 million in charitable causes by 2030, connecting homebuilding with a commitment to building a strong community across Washington, Oregon, Idaho, and Montana. Giving continues to be a central part of Hayden Homes’ purpose.

Questions & Answers
Was the Community Charitable Covenant illegal under Washington law?
Washington’s Private Transfer Fee Obligation Act, RCW 64.60, permits a transfer fee payable to a qualified 501(c)(3) or 501(c)(4) organization to support charitable activity. Hayden Homes and First Story believed the charitable covenants were fully lawful and specifically authorized under Washington law. [AOD ¶2.5]

Did Hayden Homes or First Story admit any wrongdoing as part of this agreement?
No. Under the Assurance of Discontinuance, there was no admission of liability or fault by Hayden Homes or First Story. [AOD ¶2.4]

Where did the money collected through the covenant go?
All funds from the covenant payments were redistributed by First Story to qualified 501(c)(3) organizations located in the counties in which the payments were collected. [AOD ¶2.1(e)]

Did the covenant let Hayden Homes use homeowner money to support its own public image?
Hayden Homes’ charitable reputation has been built through decades of company-funded philanthropy — more than $88 million invested in the communities it serves since 1989, with a commitment to invest an additional $25 million by 2030 through the Give As You Go™ Fund. That dwarfs the roughly $867,000 in fees Washington homeowners paid under the covenant since 2007. Hayden Homes has no need to redirect homeowner fees to fund its reputation; its own giving does that many times over. The purpose of the covenant was to create a lasting tradition of neighbors helping neighbors by encouraging support for local nonprofits in the communities where homeowners lived.

Was the covenant clearly disclosed to homebuyers, and could it be removed?
Yes. Hayden Homes and First Story clearly disclosed the Community Charitable Covenant to homeowners and removed the covenant whenever a homeowner requested it.

Did Hayden Homes ever threaten or take legal action against a homeowner over the covenant?
No, Hayden Homes and First Story have never taken or threatened legal action against homeowners in connection with the charitable covenants.

What is First Story, and was covenant money used to fund it?
One important distinction is between First Story’s primary mission and its separate Community Giving Grants program. That distinction matters because Washington law provides that charitable covenant donations must benefit the community in which they are collected. First Story ensured that those funds were tracked separately and distributed accordingly to qualified nonprofit organizations serving the counties where the donations originated. 100% of the donations it collected went to critical nonprofits in the counties where they were collected.

First Story’s primary purpose, unrelated to the community charitable covenant program, is to create homeownership opportunities for under-resourced families, empowering them to build financial stability and break the cycle of generational poverty, through zero-down, zero-interest loans to qualified families at or below 80% of area median income, funded by donations from Hayden Homes and its partners. Together, this program has changed the lives of 129 families to date.