25-27_Funding_Guidelines_FINAL.pdf

For new projects funded in the 2025-

2027 Capital Budget

Please join us to learn more at our Grant Program

Webinar:

Wednesday, July 30, 2025, 10 a.m. - noon

Registration Required

Registration Link: Commerce CCF New Award Webinar

Space is limited, PLEASE REGISTER ONLY ONE LOGIN

PER GRANTEE

2025-2027 Grant Program Guidelines

COMMUNITY CAPITAL

FACILITIES

Community Capital Facilities

Programs

P.O. Box 42525

Olympia, WA 98504-2525

(360) 725-3075 capprograms@commerce.wa.gov

* Commerce reserves the right to update these guidelines

Contract Readiness Survey https://wastatecommerce.zoom.us/webinar/register/WN_xCwx5zw5SD2nZXH2GnRo3w#/registration mailto:capprograms@commerce.wa.gov?subject=Community%20Capital%20Facilities%20Programs

Five Steps to Obtaining your State Grant Funds

STEP 1: Submit a ‘Contract Readiness Survey’ Please complete your Contract Readiness Survey online and submit it as soon as possible. Feel free to contact your project manager if you have any questions as you fill out the survey.

STEP 2: Meet our other requirements Net grants of over $250,000 performed by nonprofits and public benefit corporations must provide title insurance, a deed of trust, leasehold deed of trust, promissory note, covenant, or other appropriate securitization for the grant.

Local Governments and Tribes may also be required to complete the securitization process based on a project review.

Proof of Insurance – Grantee shall provide insurance coverage that shall be maintained in full force and effect during the term of the contract.

Construction, acquisition and other projects will be required to:

Pay state prevailing wages;

Meet the LEED Silver Standard or obtain an exemption;

Provide proof of site control;

Provide proof of any other committed funds; and

Complete Executive Order 21-02 requirements for archaeological and cultural resources.

STEP 3: Sign a grant contract Once you have met all requirements, your project manager will draft a contract and send it to you for your signature. Once the contract is executed you can request reimbursement of your grant funds.

STEP 4: Submit reimbursement materials Upon execution of your contract, you will receive an email with materials to guide you through the reimbursement process. These materials include instructions for completing an invoice voucher form A19, status reports, links and other valuable information. This is a reimbursement-style grant, that means no advance funding will be provided from Commerce. Once the contract is executed and you have documented incurred costs, you can begin submitting requests to draw down funds. — if you have incurred, paid, and documented eligible costs within the scope of work. We may also conduct a site-monitoring visit.

STEP 5: Close out your contract You will be provided with close-out materials from your assigned project manager and will be required to show proof of project completion. We will provide any additional instructions at that time.

https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fapp.smartsheet.com%2Fb%2Fform%2Fa415a4c843d64747ba24bcd2494cf606&data=05%7C02%7Cbeth.robinson%40commerce.wa.gov%7C971c70cd865f43b04d8c08ddbd7e18bb%7C11d0e217264e400a8ba057dcc127d72d%7C0%7C0%7C638875071457260941%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=8UkG%2BK%2FxSGmb6rQ2Exz5uRPonJuktVHjicWmFABJpmQ%3D&reserved=0

Contracting Specifics

1. Origins of your grant Your project has been awarded funds through the 2025-2027 state Capital Budget. No federal dollars are awarded by the Capital Budget.

We strive to administer funds expediently and with a minimum of red tape. We do so within the policies and procedures established by the Legislature, the Office of Financial Management, the Treasurer, Commerce, and the

Office of the Attorney General.

2. Funding restrictions A grant can only be spent by the grantee for costs that fit the scope of work as described in your legislative application and accepted by the legislature. This information was previously submitted to the Governor, or your Senator or Representative, and has been forwarded to Commerce.

Construction projects (including landscaping) that receive any Capital Budget grant funds are required to pay state prevailing wages as of the date the Governor signed the budget, May 20, 2025.

All nonprofit grantees must follow the rules set forth in the Washington Nonprofit Corporation Act

RCW 24.03A.

Every contractor and subcontractor is required to have a Unified Business Identifier (UBI) number.

All grantees must follow all other state, federal and local laws that would normally apply to them.

3. Cost reimbursement Funds are available on a reimbursement basis only and cannot be advanced. Reimbursable costs are those that a

Grantee has already incurred as far back as July 1, 2022. If the funds are being used to purchase real property, please contact us.

We may reimburse grant recipients for costs incurred prior to the date a contract is executed. Different programs may have different eligible costs.

Commerce Match for Eligible Capital Project Costs in our Competitive Grants

Building Communities Fund - 25% state funds, 75% grantee non-state funds

Building for the Arts - 33% state funds, 67% grantee non-state funds

Youth Recreational Facilities - 25% state funds, 75% grantee non-state funds

4. Contracting conditions In the absence of special legislative instructions, several requirements must be met before grantees can begin drawing down their grant funds, including:

A) Grantees must demonstrate the financial capability to complete the project, or a distinct phase of the project that is usable to the public. This means documenting all funds needed to complete the project have been committed to the project.

B) Grantees must provide written evidence of site control, for a minimum of 10 years after final payment, either through legal ownership or a long-term lease on the subject property. This does not apply to awards designated solely for preconstruction, and/or acquisition of real property that does not include a construction or renovation component.

https://app.leg.wa.gov/RCW/default.aspx?cite=24.03A&full=true

C) Projects performed by nonprofits and public benefit/development corporations for construction, acquisition and renovation receiving more than $250,000 in state funds must list Department of Commerce on the deed of trust or leasehold deed of trust, promissory note, or a covenant as appropriate and provide title insurance. The deed of trust or leasehold deed of trust, and the covenant must be recorded before reimbursement can begin.

D) Projects will require consultation with affected Tribes and the state Department of Archaeology and Historic

Preservation (DAHP). This review must be satisfactorily completed before a contract can be drafted.

E) Capital construction projects that are required to meet high-performance building standards must document that they have entered the LEED certification process or obtain an exemption.

F) Grantees are required to provide proof of insurance coverage. This may include Liability ($1,000,000), Fidelity and Property insurance in an amount to cover the grant award.

G) For all contracts, Commerce will, at its sole discretion, hold back up to the final 5% of grant funds until the project is complete, and the grantee provides sufficient documentation of project completion. The documentation should be submitted with the grantee's final request for reimbursement.

5. Non-state funds Grantees must provide documentation of all funding required to complete the project. Non-state funds may consist of cash on hand, previously expended, credit, documented pledge commitments, a legal commitment of funds from a governmental entity, and the value of land acquired for the project. Grantees may also include the proceeds of a letter of credit or other binding loan commitment as part of their non-state funds. The value of land must be supported by a current appraisal performed by a certified professional appraiser.

6. Archeological review All projects must be reviewed for archaeological and cultural resources per Executive Order 21-02. This is required of all projects not undergoing a Section 106 review under the National Historic Preservation Act.

7. Contract development We will draft a contract when the grantee meets all pre-contracting requirements. The first step in that process is to fill out the online Contract Readiness Survey. This form will help us determine if your project is ready to begin the contracting process. Contracts take about six weeks to execute once all required information is provided to us.

8. Accessing your funds Funds become available once a contract is executed. Copies of each invoice and proof of payments that clearly document the expenses claimed must accompany all requests for payment. A Project Status Report and sub-contractor information are also required.

After the contract is executed, you will receive instructions on how to submit a reimbursement request. This will be done electronically through the Secure Access Washington (SAW) portal. You will need to create a SAW account if you do not already have one.

Grantees are responsible for maintaining clear and accurate project records and making them accessible to

Commerce and the State Auditor. Site visits during construction and after completion may be scheduled.

https://dahp.wa.gov/2102 https://dahp.wa.gov/project-review/section-106 https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fapp.smartsheet.com%2Fb%2Fform%2Fa415a4c843d64747ba24bcd2494cf606&data=05%7C02%7Cbeth.robinson%40commerce.wa.gov%7C971c70cd865f43b04d8c08ddbd7e18bb%7C11d0e217264e400a8ba057dcc127d72d%7C0%7C0%7C638875071457260941%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=8UkG%2BK%2FxSGmb6rQ2Exz5uRPonJuktVHjicWmFABJpmQ%3D&reserved=0 https://secureaccess.wa.gov/myAccess/saw/select.do

9. Amending a contract A contract may be amended if proposed changes operate within the legislative intent of the appropriation; however, amending the scope of your contract may not be possible if the proposed changes vary significantly from your original project. Changes may require legislative approval.

10. Reappropriations Washington operates under a biennial (or two-year) budget. Each appropriation in the 2025-2027 Capital Budget must, by law, lapse at the close of the biennium (June 30, 2027).

Since many projects take more than two years to complete, Commerce will automatically request a reappropriation of any unspent funds. However, we cannot guarantee that the Legislature will agree to extend funding, nor can we legally obligate funds from one biennium to another.

Grant recipients are advised to discuss pending reappropriations with their legislators prior to the beginning of each legislative session.

11. Change of ownership Most capital projects must be held by the grantee for a minimum of 10 years from the date of final payment or the date the project is made usable to the public, whichever date is later. During that ten-year period, the project must be used for the same purpose expressed in the contract. Under certain conditions a facility may be sold if proceeds from the sale are used to purchase another facility that will be used for the same purpose.

12. Prevailing Wages Construction projects that receive any of our grant funds are required to pay state prevailing wages, including landscaping, beginning May 20, 2025.

The Department of Labor and Industries (LNI) provides technical information regarding the Prevailing Wage

Policies. If you need additional information about prevailing wages, please contact the Department of Labor and

Industries at 1-855-545-8163 or email at PW1@Lni.wa.gov.

Acquisition-only projects are exempt from state prevailing wage law RCW 39.12.

https://lni.wa.gov/licensing-permits/public-works-projects/prevailing-wage-policies https://lni.wa.gov/licensing-permits/public-works-projects/prevailing-wage-policies https://app.leg.wa.gov/RCW/default.aspx?cite=39.12

13. Eligible costs

Grant funds may generally be used to pay for the following construction-related expenses incurred:

design, architectural, and engineering work;

building permits/fees;

archeological/historical review;

construction labor and materials;

demolition/site preparation;

capitalized equipment;

information technology infrastructure (cables and wiring);

construction management from external sources only1;

initial furnishings2;

landscaping; and real property when purchased specifically for the project, and associated costs.3

14. Ineligible costs

Our grants are intended to fund "Brick and Mortar" unless otherwise designated in the budget or supporting legislative materials. Therefore, the following costs are not eligible for reimbursement:

internal administrative activities;

mortgage or loan payments;

labor or project/construction management from internal sources;4 fundraising activities;

feasibility studies;

computers or office equipment;

rolling stock (such as vehicles);

lease payments for rental of equipment or facilities;

any maintenance or operating costs;

property leases (including long-term);

the moving of equipment, furniture, etc., between facilities; and any in-kind labor.

1 Construction management and observation is on-site management and/or supervision of the work site and workers therein. This is an eligible project cost. Construction management does not include work performed by off-site consultants or consultant organizations, grant writers, project managers, or employees of the grantee, unless the employee is hired solely and specifically to perform on-site construction management as defined above.

2 Furnishings and equipment are considered eligible project costs if the average useful life of the item purchased is 13 years or more 3 Costs directly associated with property acquisition include appraisal fees, title opinions, surveying fees, real estate fees, title transfer taxes, easements of record, and legal expenses. Acquisition is not eligible under the Dental Capacity Grant Program.

4 Local governments may be permitted to use in-house labor, depending on their individual rules and regulations.

These guidelines define the legislative and administrative requirements governing the disbursement and use of grant funds. A grant contract will provide a formal and legal description of the relationship between Commerce and the grant recipient.

Note that these guidelines are a helpful resource, but do not guarantee compliance with all federal and state requirements. Grantees are responsible for compliance with all the rules and regulations as required by the direct grant program as enacted in law.

The Department of Commerce expressly disclaims any warranty related to the compliance with federal and state requirements and will accept no responsibility for any consequences arising from the use or reliance on these program guidelines.

Communications to state employees are public records and may be subject to disclosure, pursuant to CH.42.56

RCW.

https://app.leg.wa.gov/rcw/default.aspx?cite=42.56 https://app.leg.wa.gov/rcw/default.aspx?cite=42.56