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Building Communities Fund 2022 Report (Washington Commerce, December 2022)

Summary

The Building Communities Fund 2022 report, a biennial report per RCW 43.63A.125 from the Community Capital Facilities Unit of the Washington State Department of Commerce, dated December 2022. The executive summary states that the program grants 25% matching funds to nonprofit organizations for acquiring, constructing or rehabilitating facilities used for the delivery of social or health services. It states that the Building Communities Fund Advisory Board recommends 51 projects totaling $33,833,886 for consideration by the governor and the Legislature. The report includes a BCF Equity Assessment and appendices on managing capital appropriations, program administration and past projects.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Cite this document

“Building Communities Fund 2022 Report (Washington Commerce, December 2022).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-commercereports-bcf-b316c456-bb94-4984-a7ad-660259f3e63a-5f2f1d2955/, SHA-256 6e9cf9523958ca2638352ee1728ec9d6e059d8dfe7e1eeb9dfec832c0d351653.

Full text

 Building Communities Fund
 2022 report



Biennial report per RCW 43.63A.125




                                     December 2022
       COMMUNITY CAPITAL
       FACILITIES                    Report to the Legislature

                                     Director Lisa Brown
V3.2
Acknowledgments
Washington State Department of Commerce
Mark K. Barkley, assistant director, Local Government Division

Tony Hanson, deputy assistant director, Local Government Division

Beth Robinson, BCF supervisor, Community Capital Facilities Unit

Keith Yates, program manager, Building Communities Fund Program

Jeremy Walker, management analyst, Research Services

Special thanks to the Building Communities Fund Advisory Board for its unpaid services in reading and
evaluating the 53 eligible applications Commerce received.


Washington State Department of Commerce
Addeline Craig

360-688-0041

Addeline.Craig@commerce.wa.gov

COMMUNITY CAPITAL FACILITIES
1011 Plum St. SE
P.O. Box 42525
Olympia, WA 98504-2525

www.commerce.wa.gov

For people with disabilities, this report is available on
request in other formats. To submit a request, please
call 360-725-4000 (TTY 360-586-0772)




 [click to add the TITLE OF THE REPORT IN THE FOOTER]
Table of Contents
Executive summary...................................................................................................................................... 2

Recommended projects ............................................................................................................................... 6

Next steps ................................................................................................................................................. 12

Recommendations ..................................................................................................................................... 12

Appendix A: Managing capital appropriations............................................................................................. 13

Appendix B: Program administration .......................................................................................................... 15

Appendix C: Building Communities Fund past projects ............................................................................... 19




  2022 BUILDING COMMUNITIES FUND REPORT                                                                                                                    1
Executive summary
Authorizing legislation
RCW 43.63A.125 established the Building Communities Fund (BCF) in 2008, directing the Department of
Commerce (Commerce) to administer the program. The program grants 25% matching funds to nonprofit
organizations for acquiring, constructing or rehabilitating facilities used for the delivery of social or health
services. It is financed through the sale of state bonds.

In the 2021-23 biennium, the Legislature changed the match requirements for the project list submitted for
consideration in the 2023-25 biennium, as follows:

      100% of the total cost for projects up to $100,000
      75% of the total cost for projects that exceed $100,000, up to $250,000
      50% of the total cost for projects that exceed $250,000, up to $500,000
      25% of the total costs for projects that exceed $500,000.

Recommended projects
The BCF Advisory Board recommends 51 projects totaling $33,833,886 for consideration by the governor and
the Legislature.

BCF Equity Assessment
The BCF program continued to build upon its 2021 program evaluation by conducting further research and
beginning to develop new tools and processes based on the previous findings and recommendations.

Key findings
Pre-development costs pose a significant barrier to building communities.
Applying for a BCF grant requires significant pre-development operational costs, especially for by-and-for,
Black, Indigenous, and People of Color (BIPOC) led organizations, and small rural organizations. A lack of
funding to conduct the necessary pre-development work, such as project and fundraising feasibility plans,
impedes these organizations from accessing BCF. Most of these organization's staff are direct service
providers and also perform administrative duties, such as internal auditing and evaluation and human
resources, as well as business activities, such as grant writing, marketing, and outreach and engagement. This
was also found in the 2021 analysis.

The tiered approach had benefits, but did not address the needs of mid-
range nonprofits and tribal governments.
The tiered match requirements added during the 2021 legislative session were intended to assist
disadvantaged and lower-capacity organizations and alleviate barriers to access associated with the
traditional 25% match requirement. Although tiered matching was recommended as a solution to address
barriers to access from the 2021 BCF equity assessment, the tiered match approach did not accomplish the
intended purpose.




 2022 BUILDING COMMUNITIES FUND REPORT                                                                             2
The traditional project for large or small organizations through this program includes a funding portfolio, or
project budget, ranging from $2 million to $30 million. These funding portfolios far exceed the tiered approach,
which make the current tiers ineffective.

A majority of the projects requested more than $100,000. Only 16% of grantees received 100% match for
funding requests of less than $100,000. Projects that did receive 100% match were sponsored by larger
organizations or had experience navigating program funding requirements and had received state funds in a
prior biennium.

The tiered match requirement specifically helps small projects, but doesn't address the barriers for
disadvantaged or low capacity organizations to receive assistance for large projects (such as projects greater
than $500,000) that require 75% match. The average funding request for consideration in the 2023-25 budget
cycle was $1.1 million. In addition, more than 80% of requests are in communities with high environmental
health disparities, which demonstrates the critical place of program to invest in vulnerable communities that
need thriving social and health facilities.

If the goal is to reduce barriers to access for disadvantaged and lower capacity organizations, there are
opportunities to address them. For example:

   Lower match requirements could be set for organizations that meet a definition of disadvantaged or low
   capacity based on clear criteria, such as organizational size, geographic location, by-and-for organizations,
   and organizations that have not received previous state grants.
   Match could be set as a goal instead of a requirement. Projects with higher match amounts could be
   evaluated and ranked higher on the recommended projects list, but having a lower match amount wouldn't
   disqualify a project from applying or receiving a funding recommendation

Smaller and mid-range projects often need to make the decision whether to reduce project budgets for an
increase in match funding or maintain the original budget to assist the feasibility of project delivery to the
community. The outcomes of this include:

   Organizations reducing project budget to receive maximum match that may not produce projects that
   maximize the state's investment and the intended public benefit.
   Smaller organizations that require more financial assistance to complete larger projects continue to have
   issues with capital campaigns based on the tiered approach and their project budget.
   Increase in requests from larger organizations for smaller projects that they have funding capacity to
   complete.

Many organizations do not attempt to apply for Building Community Funds
because of high pre-development costs.
During the 2022 outreach and engagement effort many organizations did not consider it feasible to apply for
BCF funds due to the high cost of predevelopment: project feasibility study, fundraising feasibility plan,
operations plan, LEED certification and real-estate consultation services are all costs that smaller
organizations do not have to even apply for a BCF grant.

The Building Communities Outreach Tool is an effective tool for strategic
outreach.
The 2021 report found that the traditional mass mailings and "word of mouth" method were not effective in
reaching out to underrepresented communities. The Building Communities Outreach Tool was developed in

 2022 BUILDING COMMUNITIES FUND REPORT                                                                           3
2022 and is a direct response to the recommendation that the BCF program step up engagement with these
communities. The tool combines best practices from equity frameworks and LEAN business approaches to
conduct effective outreach. From December 2021 to February 2022, a new employee member was hired and
conducted extensive outreach and engagement through workshops that showed the effects of providing
technical assistance and building community relationships

The tool helped double the number of by-and-for and BIPOC organizations' interest in BCF and presents many
opportunities to expand the reach of BCF and similar programs. Through these additional outreach and
engagement opportunities, 15 rural organizations with less than 20 employees were able to participate in the
workshops. They would not have been to participate if this event was held in-person in a larger city. A total of
34 BIPOC led and/or By-and-For organizations participated and mentioned that they also may not have been
able to participate in other forums due to strains on staff time.

There are many underserved and rural areas across the state where carefully planned outreach and
engagement can continue to increase the number of BCF applications, especially for BIPOC-led and by-and-for
organizations. The tool helps staff locate areas of the state where BCF funding has not been traditionally
available and helps them market the BCF program to organizations in the area, while offering a heightened
awareness regarding each organization and who they might serve.

Virtual workshops provide more opportunities for rural, BIPOC-led, and by-
and-for organizations to participate in outreach and engagement.
While digital divides still exist in Washington, especially for rural and BIPOC communities, virtual workshops
provided employees the opportunity to engage with more organizations and allowed more equitable access to
information. Adopting new tools of engagement allowed for more effective question and answer sessions and
provided an opportunity for BCF to better market itself. Many organizations referred other organizations to
apply after they attended a virtual workshop.

Translation services are critical to equitable outreach and engagement.
Translation services have been used for live transcription during virtual workshops in Spanish and Somali, as
well as some written translation. However, funding must be requested each biennium for the specific program,
which constrains strategic planning and maintenance of existing documents in other languages.

BCF staff have limited capacity to engage with the large number of
organizational inquiries and needs.
While initial engagement and outreach was a success, this posed a new challenge for BCF staff. Inquiry calls
increased by over 300% for the two program staff. BCF is continuously improving its processes and website
information to provide clarity, but many of the questions are nuanced in nature and could not be addressed by
staff conducting the initial outreach or standard FAQ documents. BCF staff are also responsible for eligibility
review, which takes time and is part of their regular job duties. This limited number of employees also makes it
challenging to implement all of the recommended changes and continuous improvement projects.

Next steps for Commerce
   Develop and invest in the Building Communities Outreach Tool and the staff who use it.
   Implement "compensation for participation" stipends that assist in recruiting low-income or
   underrepresented community members of state boards, commissions, councils, committees, and other
   similar groups.

 2022 BUILDING COMMUNITIES FUND REPORT                                                                         4
Recommendations
 State funding technical assistance capacity building grant dollars for pre-development projects.
 Replace tiered approach with an increased match of 75% for all grantees on the recommended project list.




2022 BUILDING COMMUNITIES FUND REPORT                                                                  5
Recommended projects
Table 1: 2023-25 Building Communities Fund Recommended Project List

 Rank   Organization Name / Application Title                                     Recommended

                                                100% State Funds Tier

 1      Kitchen Spokane Expansion of Public Food Business Incubator               $100,000


 2      The Moore Wright Group Expanding Capacity for Workforce Development       $98,500


 3      Feast Collective Capital Expansion                                        $100,000


 4      Unbridled Spirit 7 Unbridled Spirit: Outdoor Program Space                $68,131


 5      Boys and Girls Clubs of Thurston County Yelm Boys & Girls Club Remodel    $100,000


 6      Boys and Girls Clubs of SnoCo S. Everett/Mulkilteo Building Communities   $100,000


 7      Boys & Girls Clubs of Skagit County Sedro-Woolley Club Renovation         $100,000


 8      Cascade Community Healthcare United Learning Center                       $100,000



                                                75% State Funds Tier

 9      Methow Valley Community Center Associationnn Energy Retrofit              $135,000


 10     Northeast Youth Center HVAC replacement for ECEAP Classrooms              $187,500


 11     Centro Latino SER -Jobs For Progress                                      $89,872


 12     ReCyclery of Jefferson County ReCyclery Improvement                       $143,914


 13     Southeast Youth & Family Services SEYFS Renovations                       $187,250


 14     YWCA Clark County Community Office Repairs and Renovation                 $101,250


 15     Sea Mar Community Health Centers Sea Mar CHC - Concrete                   $186,386


 16     Sea Mar Community Health Centers Sea Mar CHC - Elma                       $187,471


 17     Makah Indian Tribe of the Makah Indian Reservation Community Gymnasium    $159,754


 18     Lumen Early Learning Center Expansion                                     $185,250



                                                50% State Funds Tier

 19     CCS of Western WA Snohomish Family Center Improvements                    $205,556




 2022 BUILDING COMMUNITIES FUND REPORT                                                          6
Rank   Organization Name / Application Title                                           Recommended

20     Global Neighborhood Global Neighborhood Building Expansion                      $229,301


21     Bare Necessities/ The church on 304th Benston Hall                              $247,000


22     Helping Hands Behavioral Health Clinic                                          $250,000


23     Making A Difference Foundation Eloise's Cooking Pot Food Bank Capital Remodel   $242,500



                                                25% State Funds Tier

24     Snoqualmie Indian Tribe Childcare and Development Center Phase II               $200,000


25     HopeWorks Social Enterprises Culinary Training Academy                          $635,268


26     Bellevue Boys & Girls Club Teen Center Building Renovation                      $318,122


27     Community Youth Services CYS Marina View Building Renovation                    $100,000


28     Africatown Community Land Trust William Grose Innovation Center                 $250,000


29     Friends of Youth Landing Youth Service Center                                   $297,200


30     Children's Home Society of Washington North Seattle Family Support Center       $1,089,500


31     Carl Maxey Center Carl Maxey Center Remodel - Phase 3                           $350,000


32     University Heights Center Community Kitchen, Safety, and Accessibility          $250,000


33     Comprehensive Mental Health of Tacoma Pierce County                             $2,445,500


34     Nisqually Indian Tribe Nisqually Health and Wellness Center                     $6,000,000


35     Asian Pacific Cultural Center Asia Pacific Cultural Center Renovation           $1,082,000


36     YMCA Pierce and Kitsap Counties Scott and Sis Names Family YMCA                 $3,000,000


37     Eritrean Association in Greater Seattle Eritrean Community Center Expansion     $312,200


38     Step By Step Family Support Center Step By Step Early Learning Center           $2,622,136


39     Christian Aid Center Community Meal Program                                     $672,174


40     NEW Health Programs Association NEW Health Newport Capital Expansion            $823,027


41     Willapa Community Development Assn. Veteran Housing and Resource Center         $493,349


42     FamilyWorks Food Bank Renovation                                                $425,000


43     Cham Refugees Community Cham Community Center                                   $2,050,000




2022 BUILDING COMMUNITIES FUND REPORT                                                                7
Rank   Organization Name / Application Title                                 Recommended

44     Puyallup Food Bank Puyallup Food Bank Facilities                      $558,166


45     Refugee Artisan Initiative RAI Maker Space + Cultural Center          $777,968


46     Lake Stevens Community Food Bank Association Lake Stevens Food Bank   $675,000


47     FamilyWorks New Family Resource Center Construction                   $325,000


48     FISH Food Pantry Renovation in Kittitas County                        $472,990


49     Community Health Care New Puyallup Health Center                      $2,000,000


50     Refugee Women's Alliance ReWA/LIHI MLK Renton                         $1,000,365


51     Peninsula Senior Activity Center Addition and Remodel                 $1,104,286


       Total                                                                 $33,833,886




2022 BUILDING COMMUNITIES FUND REPORT                                                      8
2023-25 Building Communities Fund recommended project map
The map of 2023-25 BFC recommended projects is available online. The list by state legislative district (LD) is
below.

Table 2. Recommended projects list by county and state legislative district

 Project                                                                   County         LD

 Kitchen Spokane Expansion of Public Food Business Incubator               Spokane        4


 The Moore Wright Group Expanding Capacity for Workforce Development       Grays Harbor   19


 Feast Collective Capital Expansion                                        Spokane        3


 Unbridled Spirit 7 Unbridled Spirit: Outdoor Program Space                Whatcom        42


 Boys and Girls Clubs of Thurston County Yelm Boys & Girls Club Remodel    Thurston       2


 Boys and Girls Clubs of SnoCo S. Everett/Mulkilteo Building Communities   Snohomish      38


 Boys & Girls Clubs of Skagit County Sedro-Woolley Club Renovation         Skagit         39


 Cascade Community Healthcare United Learning Center                       Lewis          20


 Methow Valley Community Center Association Energy Retrofit                Okanogan       12


 Northeast Youth Center HVAC replacement for ECEAP Classrooms              Spokane        3


 Centro Latino SER -Jobs For Progress                                      Pierce         27


 ReCyclery of Jefferson County ReCyclery Improvement                       Jefferson      24


 Southeast Youth & Family Services SEYFS Renovations                       King           37


 YWCA Clark County Community Office Repairs and Renovation                 Clark          49


 Sea Mar Community Health Centers Sea Mar CHC - Concrete                   Skagit         39


 Sea Mar Community Health Centers Sea Mar CHC - Elma                       Grays Harbor   24


 Makah Indian Tribe of the Makah Indian Reservation Community Gymnasium    Clallam        24


 Lumen Early Learning Center Expansion                                     Spokane        3


 CCS of Western WA Snohomish Family Center Improvements                    Snohomish      38


 Global Neighborhood Global Neighborhood Building Expansion                Spokane        3




 2022 BUILDING COMMUNITIES FUND REPORT                                                                       9
Project                                                                         County        LD

Bare Necessities/ The church on 304th Benston Hall                              Pierce        2


Helping Hands Behavioral Health Clinic                                          Snohomish     38


Making A Difference Foundation Eloise's Cooking Pot Food Bank Capital Remodel   Pierce        27


Snoqualmie Indian Tribe Childcare and Development Center Phase II               King          5


HopeWorks Social Enterprises Culinary Training Academy                          Snohomish     38


Bellevue Boys & Girls Club Teen Center Building Renovation                      King          48


Community Youth Services CYS Marina View Building Renovation                    Thurston      22


Africatown Community Land Trust William Grose Innovation Center                 King          37


Friends of Youth Landing Youth Service Center                                   King          45


Children's Home Society of Washington North Seattle Family Support Center       King          46


Carl Maxey Center Carl Maxey Center Remodel - Phase 3                           Spokane       3


University Heights Center Community Kitchen, Safety, and Accessibility          King          43


Comprehensive Mental Health of Tacoma Pierce County                             Pierce        27


Nisqually Indian Tribe Nisqually Health and Wellness Center                     Thurston      2


Asian Pacific Cultural Center Asia Pacific Cultural Center Renovation           Pierce        29


YMCA Pierce and Kitsap Counties Scott and Sis Names Family YMCA                 Pierce        28


Eritrean Association in Greater Seattle Eritrean Community Center Expansion     King          37


Step By Step Family Support Center Step By Step Early Learning Center           Pierce        25


Christian Aid Center Community Meal Program                                     Walla Walla   16


NEW Health Programs Association NEW Health Newport Capital Expansion            Oreille       7


Willapa Community Development Assn. Veteran Housing and Resource Center         Pacific       19


FamilyWorks Food Bank Renovation                                                King          43


Cham Refugees Community Cham Community Center                                   King          37




2022 BUILDING COMMUNITIES FUND REPORT                                                              10
Project                                                               County      LD

Puyallup Food Bank Puyallup Food Bank Facilities                      Pierce      25


Refugee Artisan Initiative RAI Maker Space + Cultural Center          King        46


Lake Stevens Community Food Bank Association Lake Stevens Food Bank   Snohomish   44


FamilyWorks New Family Resource Center Construction                   Seattle     43


FISH Food Pantry Renovation in Kittitas County                        Kittitas    13


Community Health Care New Puyallup Health Center                      Pierce      25


Refugee Women's Alliance ReWA/LIHI MLK Renton                         King        37


Peninsula Senior Activity Center Addition and Remodel                 Pacific     19




2022 BUILDING COMMUNITIES FUND REPORT                                                  11
Next steps
Develop and invest in the Building Communities Outreach Tool
Commerce will continue on the current efforts of updating the BCF outreach tool to make it more useful,
intuitive and sustainable to meet program needs. There are many GIS efforts underway around diversity, equity,
and inclusion work. The organization data collected from the BCF research can be integrated with other GIS
layers to create a more powerful tool. This work requires more investment in IT and analyst time, in both new
positions and designated work.

Implement compensation for participation in advisory boards
During the 21-23 BCF report, Commerce identified that the BCF advisory boards required a re-evaluation and
expressed a plan to diversify the board based on the communities we serve. Efforts to diversify and expand the
board are hindered by fiscal restraints, mostly financial. Advisory boards are made up of volunteers that steer
the program review by adopting sound, ethical and legal governance and financial management policies to
ensure nonprofits have adequate resources to carry out capital funding requirements. With the passage of
Chapter 245, Laws of 2022, we will execute our plan for compensation for participation stipends during the
next application cycle scheduled for the fall of 2024.


Recommendations
The Building Communities Fund is one of the state’s most targeted programs for helping communities develop
capital facilities that meet the needs of vulnerable or underserved populations. In order to broaden access, the
Legislature should consider:

   Funding technical assistance capacity building grant dollars for pre-development.
   Implement community and economic development responsibilities to our process per RCW 43.330.050
   Additional funding will allow Commerce to build on the ongoing technical assistance while granting $1
   million to the lowest capacity organizations so they can better compete for state capital funding by
   providing financial resources to address capacity barriers, such as hiring a consultant, project manager,
   grant writer, and others.
   Replace tiered approach with increase match to 75%.


Through the 2021 Listening Tour and the BCF outreach tool implementation process, stakeholders' top barrier
to accessing capital resources stems from financial barriers. An increase in match for other competitive
programs such as Building for the Arts (BFA), a similar program to BCF, was shown to reduce inequities in
access.




 2022 BUILDING COMMUNITIES FUND REPORT                                                                      12
Appendix A: Managing capital appropriations
Overview:
Agencies administering capital budget appropriations must adhere to many state laws, rules, and guidelines.
Many projects must also meet additional state and/or federal statutory requirements. In addition, many capital
budget appropriations require reports to the legislature and other program specific administration. This
document describes only the general requirements for administering a capital budget appropriation.

Table 1. Select Administrative and Statutory Requirements
      General Administration                          Additional Statutory Requirements
                                                      Statutory Requirements
      OFM/Capital Budget Requirements
                                                      Historic Preservation & Tribal Consultation
      Allowable Costs
                                                      Executive Order 21-02
      Staffing costs up to 3%
                                                      Federal Section 106
      Program Costs
                                                      Environmental
      Financing
                                                      SEPA
      Taxable/Non-taxable
                                                      NEPA
      Reappropriations
                                                      Growth Management
      Land acquisition/Site Control
                                                      Urban growth area
      Real estate transactions
                                                      Critical Areas
      Deeds of Trust
                                                      Local project review
      Ownership or 15-yr lease - intended use
                                                      Wage Determination
      Technical Assistance
                                                      Prevailing Wage
      Contracting
                                                      Davis Bacon (federal)
      Attorney General Review
                                                      Energy
      Audits
                                                      LEED Standards



Commerce's Community Capital Facilities
The Community Capital Facilities Unit is a key ingredient in Commerce's overall mission to make communities
stronger. In the 2021-23 biennium, the Legislature appropriated over $315 million dollars to Commerce across
the five funds managed in this Section. The Section used 14 staff to meet the administrative requirements of
459 projects. In addition, staff manages an additional 200 to 400 projects in re-appropriations. Total dollar
value of projects managed by staff in any one biennium can therefore be $650 to $850 million dollars

Keys to successful projects: Why good project administration is
essential
Site control
Project grantees must either own the impacted property or have a long-term lease

A grantee received a direct appropriation to construct a monument on land it did not control. All capital budget
appropriations over $250,000 require the state to maintain a security interest by placing the state on the deed
or creating a leasehold deed of trust. In this project, the grantee did not want to enter into a lease agreement.
Commerce worked with legislative budget staff and OFM to transfer ownership of the project to the local
government that owned the project site.



 2022 BUILDING COMMUNITIES FUND REPORT                                                                       13
Executive Order 21-02
All capital construction projects and land acquisition projects require cultural and historic review

A community received a capital budget appropriation to renovate a building. Later, the community decided to
construct a facility next to the planned renovation. This triggered a new requirement to conduct a cultural
resources review with the relevant tribal government. Commerce staff continued to support the renovation
while supporting the new construction with assistance on Governors Executive Order 21-02 Cultural Review.

Growth Management Act (GMA)
Certain state funded projects require the local government to be in compliance under the Growth Management
Act.

A local government received a legislative proviso from the Public Works Assistance Account. Staff noticed that
the local government was out of compliance with certain provisions of the Growth Management Act and
coordinated an extension to allow the project to move forward.

Final considerations
The most common delay of capital budget appropriations is the need to have all non-state funds raised before
the project can even begin. Coordination and consultation with affected tribes is another milestone that can
take time. Early coordination is key.

Each project must also be managed in accordance with OFM and Capital budget and accounting requirements.
Commerce staff have extensive professional background in project and contract management and receive
annual training to manage capital budget appropriations efficiently and effectively.




 2022 BUILDING COMMUNITIES FUND REPORT                                                                    14
Appendix B: Program administration
Distressed communities
The Building Communities Fund (BCF) was established in 2008, replacing the Community Services Facilities
Program established in 1997. This report is submitted to meet the requirements of RCW 43.63A.125
subsections (3) and (4).

BCF directs Commerce to identify qualified community and social service capital projects in distressed areas
of the state and to evaluate and submit a ranked list of these projects to the governor and Legislature. These
facilities must be used to deliver nonresidential community services, such as social service centers and
multipurpose community centers, including those serving a distinct or ethnic population.

A distressed community must include at least one of the following characteristics:

      A county that has an unemployment rate that is 20 percent above the state average for the previous
       three years
      An area within a county that the department determines to be a low-income community, based on the
       low-income community designations in the U.S. Department of the Treasury-Community Development
       Financial Institutions Fund’s new markets tax credit program
      A school district in which at least 50 percent of local elementary students receive free or reduced-price
       meals

In addition, RCW 43.63A.125 directs Commerce to:

      Establish a competitive process to solicit and evaluate applications from nonprofit organizations
      Evaluate applications in consultation with a citizen advisory board using objective criteria
      Submit biennially to the governor in the department’s capital budget request a ranked list of the
       qualified eligible projects
      Submit biennially a summary report that describes the solicitation and evaluation process
      Develop and manage contracts as well as monitor project expenditures and grantee performance

Develop accountability and reporting standards for grant recipients; at a minimum, the department must use
the process, including issues encountered and recommendations for improvements listed in RCW 43.63A.125
(2)(b) to evaluate the progress of each grant recipient

Submit a biennial report to the appropriate fiscal committees of the Legislature beginning Jan. 1, 2011.

For the project list submitted for consideration in the 23-25 biennium, BCF will pay as follows:

A) One hundred percent of the total cost for projects up to $100,000;

B) Seventy-five percent of the total cost for projects that exceed $100,000, up to $250,000;

C) Fifty percent of the total cost for projects that exceed $250,000, up to $500,000.

D) Twenty five percent of the total costs for projects that exceed $500,000.

The BCF is also allowed to make an additional award of up to 10 percent of the total granted amount for
projects that face “exceptional circumstances,” as defined in the statute. In addition, if the Legislature

 2022 BUILDING COMMUNITIES FUND REPORT                                                                       15
appropriates operating funds for BCF, up to $3 million of those funds can be used for technical assistance
grants to interested parties. The BCF is financed through the sale of state bonds.

Grantee eligibility criteria
In the 2023-2025 cycle, BCF staff reviewed 73 submitted applications to ensure they met eligibility thresholds.
Guidelines stipulate that applicants must:

      Be registered in the state as a nonprofit organization
      Have a legally constituted board of directors
      Agree to enter the Leadership in Energy and Environmental Design (LEED) certification process or apply
       for and receive an exemption
      Certify that state prevailing wages will be paid
      Have control of the project site through ownership or lease agreement
      Submit an executed joint operating agreement if applications are a partnership
      After completing a preliminary review to determine eligibility, program staff forwarded 21 applications
       to the BCF Advisory Board for review.

Project eligibility criteria
To be forwarded to the governor for funding consideration, projects must acquire, construct or rehabilitate a
nonresidential facility used to deliver community services (such as social service and multipurpose community
centers), including those serving a distinct or ethnic population. Projects must also be located in a distressed
community or serve a substantial number of low-income or disadvantaged people.

Projects must meet at least one of the following criteria:

      Be located in a distressed county, as defined by the state Employment Security Department
      Be located in an area designated as a low-income community in the U.S. Department of the Treasury-
       Community Development Financial Institutions Fund’s new markets tax credit program
      Be located in a school district in which at least 50 percent of local elementary students receive free or
       reduced-price meals


The board used the 10 evaluation benchmarks set forth in statute as a template for evaluating applications. To
be forwarded to the governor for funding consideration, applicants had to demonstrate to the board’s
satisfaction that their project met all of the following 10 criteria:

1) The project will increase the range, efficiency or quality of the services provided to citizens.
2) The project will be located in a distressed community or will serve a substantial number of low-income or
   disadvantaged people.
3) The project will offer a diverse set of activities that meet multiple community service objectives. That could
   include, but is not limited to, providing social services, expanding employment opportunities for or
   increasing the employability of community residents, or offering educational or recreational opportunities
   separate from the public school system or private schools as long as recreation is not the sole purpose of
   the facility.
4) The project will reflect a long-term vision shared by residents, businesses, leaders and partners for the
   development of the community.
5) The project will require state funding to accomplish a discrete, usable phase of the project.
6) The project is ready to proceed and will make timely use of the funds.

 2022 BUILDING COMMUNITIES FUND REPORT                                                                       16
7) The project is sponsored by one or more entities that have the organizational and financial capacity to
    fulfill the terms of the grant agreement and maintain the project into the future.
8) The project will fill an unmet need for community services.
9) The project will achieve its stated objectives.
10) The project is a community priority as shown through tangible commitments of existing or future assets
    made to the project by community residents, leaders, businesses and government partners.

Application solicitation process
The BCF solicitation process consists of five main elements: email announcements, email listserv, web links,
outreach and engagement workshops, and application workshops.

Commerce curated an email list of organizations that might have an interest in applying for funding through
BCF, and each received BCF application notices. In cases where umbrella organizations did not release their
proprietary mailing lists to Commerce, each organization agreed to distribute BCF information in its regular
newsletter to members. Participating organizations included:

      Community Action Agencies
      Association of Washington Cities
      Washington State Association of Counties
      Nonprofit organizations listed with the Office of the Secretary of State
      Commission on African American Affairs
      Commission on Hispanic Affairs
      Commission on Asian Pacific American Affairs
      Governor’s Office of Indian Affairs
      Indian tribes in Washington state
      YMCAs and YWCAs
      Boys & Girls Clubs

Existing Commerce mailing lists of community nonprofit organizations (approximately 7,000)

All organizations or individuals who contacted Commerce concerning the BCF program or were referred by the
Office of the Governor, the Office of Financial Management or the Legislature

The BCF webpage on the Commerce website offers information about BCF, including application guidelines,
forms and a link to the online application. For outreach, staff conducted an online application workshop in
June, 2022 with 250 people in attendance. The 2023-2025 BCF application timetable:

      Applications available: June 1, 2022
      Online workshop: June 15, 2022
      Applications due to Commerce: Aug. 5, 2022
      Board Hearings September 29, 2022

Role of the BCF Advisory Board
The BCF statute directs Commerce to develop and administer a competitive grant process. A key component
is reviewing applications in consultation with a citizen advisory board. The BCF Advisory Board, which
Commerce recruited and appointed, consists of volunteers with expertise administering or advocating on
behalf of community nonprofit organizations throughout the state. The board also helps develop program
policy, review applications and recommend projects for the governor and Legislature to review.


 2022 BUILDING COMMUNITIES FUND REPORT                                                                     17
The 2023-2025 Advisory Board convened in October 2022 to review and rank applications. The board used the
10 evaluation benchmarks set forth in the statute to evaluate the applications. Project applicants also
participated by completing a phase II questionnaire that assist board in identifying any new potential changes
or progress made toward projects during the review period.

At the conclusion of the work session, a ranked list of 51 qualified eligible projects totaling $33,833,886 was
approved for submittal to the governor for consideration in the 2023-2025 capital budget. The Legislature will
make the final determination regarding which projects, if any, will be included in the capital budget.




 2022 BUILDING COMMUNITIES FUND REPORT                                                                      18
Appendix C: Building Communities Fund past projects
BCF projects from 2009-2023 are available on the BCF historic map.

Projects from the 2011-13 biennium to present are listed below.

10-year BCF awardees

 Biennium     Project Title                                          District

 11-13        Serenity House of Clallam County                       24


 11-13        Boys & Girls Clubs of King County                      31


 11-13        YMCA of Pierce and Kitsap Counties                     23


 11-13        Jewish Family Service                                  43


 11-13        Low Income Housing Institute                           36


 11-13        The Salvation Army                                     3


 11-13        Share                                                  49


 11-13        Navos                                                  34


 11-13        Kitsap Community Resources                             26


 11-13        Transitional Programs for Women dba Transitions        3


 11-13        Boys & Girls Clubs of the Columbia Basin               13


 11-13        Village Green Foundation                               23


 11-13        Community Action Council of LMT                        22


 11-13        United Way of Kitsap County                            26


 11-13        ARC of Spokane                                         3


 11-13        Dynamic Family Services                                33


 11-13        University District Food Bank                          43


 11-13        Community Health Care                                  28


 11-13        YWCA Yakima                                            14


 11-13        SafePlace                                              22


 11-13        Allen Renaissance, Inc.                                27


 11-13        Kent Youth and Family Services                         33



 2022 BUILDING COMMUNITIES FUND REPORT                                          19
Biennium   Project Title                                     District

13 - 15    Interfaith Community Health Center                42


13 - 15    LaCrosse Community Pride                          9


13 - 15    Gay City Health Project                           43


13 - 15    YWCA Pierce County                                27


13 - 15    University Heights Center for the Community       43


13 - 15    Brigid Collins Family Support Center              42


13 - 15    SafePlace                                         22


13 - 15    Spokane Neighborhood Action Partners              6


13 - 15    Associated Ministries of Tacoma-Pierce County     37


13 - 15    Friends of Youth                                  45


13 - 15    Behavioral Health Resources                       22


13 - 15    Ryther                                            46


13 - 15    PROVAIL                                           46


13 - 15    Vadis                                             31


13 - 15    New Life CDA                                      23


13 - 15    MLK FAME Community Center                         37


15 - 17    Seattle Tilth                                     37


15 - 17    Alternatives to Hunger DBA Bellingham Food Bank   42


15 - 17    Hopelink                                          48


15 - 17    Community Action of Skagit County                 40


15 - 17    Centerforce                                       29


15 - 17    Eritrean Association in Greater Seattle           37


15 - 17    Tonasket Emergency Food Bank                      7


15 - 17    Pierce County AIDS Foundation                     29


15 - 17    Entiat Valley Community Services Food Bank        12


15 - 17    Market Foundation                                 43




2022 BUILDING COMMUNITIES FUND REPORT                                   20
Biennium   Project Title                                                     District

15 - 17    Opportunity Council                                               42


15 - 17    FareStart                                                         37


15 - 17    Blue Mountain Action Council                                      16


15 - 17    El Centro de la Raza                                              37


15 - 17    Women and Children's Free Restaurant & Community Kitchen          3


15 - 17    Domestic Violence and Sexual Assault Services of Whatcom County   42


15 - 17    International Community Health Services                           32


15 - 17    Casa Latina                                                       37


15 - 17    Centerstone                                                       37


15 - 17    Puget Sound Regional Services                                     37


15 - 17    LASA                                                              29


15 - 17    Seattle Indian Health Board                                       37


15 - 17    YMCA of Snohomish County                                          38


15 - 17    Navos                                                             34


15 - 17    Valley Cities Counseling & Consultation                           47


15 - 17    Young Men's Christian Association of Pierce and Kitsap Counties   31


15 - 17    Community Home Health and Hospice                                 17


15 - 17    Auburn Youth Resources                                            30


15 - 17    Sea Mar Community Health Centers                                  49


17 - 19    Boys & Girls Clubs of Snohomish County                            7


17 - 19    Cocoon House                                                      38


17 - 19    Mercy Housing Northwest                                           46


17 - 19    Skagit Valley Family YMCA                                         40


17 - 19    Edmonds Senior Center                                             21


17 - 19    Opportunity Council                                               42


17 - 19    Filipino Community of Seattle                                     37




2022 BUILDING COMMUNITIES FUND REPORT                                                   21
Biennium   Project Title                                District

17 - 19    Amara                                        37


17 - 19    YMCA of Yakima                               14


17 - 19    Northwest Indian College                     42


17 - 19    Lydia Place                                  42


17 - 19    Tacoma Community House                       27


17 - 19    Peace Community Center                       27


17 - 19    North Kitsap Fishline Food Bank              23


17 - 19    Martha & Mary Health Services                23


17 - 19    Ryan's House For Youth                       10


17 - 19    Share                                        49


17 - 19    Country Doctor Community Clinic              43


17 - 19    CDM Caregiving Services                      49


17 - 19    Friends of Youth                             5


17 - 19    Helping Hands Food Bank                      39


17 - 19    Catholic Community Services of King County   42


17 - 19    Bridgeview Housing                           49


17 - 19    Aging in PACE Washington                     37


17 - 19    YMCA of Greater Seattle                      33


17 - 19    Brigid Collins House                         40


17 - 19    Step By Step Family Support Center           25


17 - 19    YMCA of Greater Seattle                      43


17 - 19    Boys & Girls Clubs of South Puget Sound      35


17 - 19    Congregations for the Homeless               41


17 - 19    First Place Scholars                         37


17 - 19    HopeWorks Social Enterprises                 38


19 - 21    Seattle Theatre Group                        43




2022 BUILDING COMMUNITIES FUND REPORT                              22
Biennium   Project Title                             District

19 - 21    Music Center of the Northwest             36


19 - 21    Seattle Symphony Orchestra                43


19 - 21    Broadway Center for the Performing Arts   27


19 - 21    Bainbridge Artisan Resource Network       23


19 - 21    Nordic Heritage Museum Foundation         36


19 - 21    Imagine Children's Museum                 38


19 - 21    Seattle Opera                             43


19 - 21    KidsQuest Children's Museum               48


19 - 21    Central Stage Theatre of County Kitsap    23


19 - 21    Roxy Bremerton Foundation                 26


19 - 21    Port Angeles Waterfront Center            24


19 - 21    Fort Worden Foundation                    24


19 - 21    Sea Mar Community Health Centers          11


21 - 23    Chief Seattle Club                        36


21 - 23    Asian Pacific Cultural Center             29


21 - 23    Community Youth Services                  22


21 - 23    Coastal Community Action Program          19


21 - 23    Seven Acres Foundation                    12


21 - 23    Eritrean Association in Greater Seattle   37


21 - 23    Ethiopian Community in Seattle            37


21 - 23    HealthPoint                               11


21 - 23    Sea Mar Community Health Centers          36


21 - 23    Reliable Enterprises                      20


21 - 23    NEW Health Programs Association           7


21 - 23    Nisqually Indian Tribe                    2


21 - 23    Rainier Valley Food Bank                  37




2022 BUILDING COMMUNITIES FUND REPORT                           23
Biennium   Project Title                                                    District

21 - 23    Sauk-Suiattle Indian Tribe                                       39


21 - 23    Sea Mar Community Health Centers                                 11


21 - 23    Lewis County Seniors                                             20


21 - 23    Volunteers of America of Eastern Washington and Northern Idaho   3


21 - 23    White Center Community Development Association                   34


21 - 23    NATIVE Project                                                   3


21 - 23    YouthCare                                                        43




2022 BUILDING COMMUNITIES FUND REPORT                                                  24


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