Community Reinvestment Plan Report — Washington State Department of Commerce (September 19, 2023)
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Summary
The Community Reinvestment Plan Report, a report to the Legislature by the Washington State Department of Commerce dated September 19, 2023, prepared pursuant to Section 128(134) of the 2022 Supplemental State Operating Budget, Chapter 297, Laws of 2022 (SB 5693). It opens with letters from the CEO of the Harriet Tubman Foundation for Safe Passage and from Directors Michael Fong of Commerce and Megan Matthews of the Office of Equity. The executive summary states that the Legislature set aside $200 million in the Community Reinvestment Account for communities disproportionately harmed by the design and enforcement of drug possession laws. It says Commerce will distribute the funds through 17 grant programs across four program areas. The closing appendix on defining and evaluating By and For organizations lists grant scoring criteria.
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“Community Reinvestment Plan Report — Washington State Department of Commerce (September 19, 2023).”
Original at app.leg.wa.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-commercereports-community-reinvestment-plan-final-combined-718c5a47-2d/
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Community Reinvestment
Plan Report
Pursuant to Section 128(134) of the 2022 Supplemental State
Operating Budget, Chapter 297, Laws of 2022 (SB 5693)
September 19, 2023
RESEARCH AND DEVELOPMENT
SERVICES Report to the Legislature
Director Mike Fong
v3.4
Washington State Lottery; the Office of the
Acknowledgments Superintendent of Public Instruction; and the
Washington State Department of Commerce Employment Security Department.
Mark Barkley, Assistant Director, Local Government
Division Community advisors
Duaa-Rahemaah Williams, Washington Housing
Alice Zillah, Managing Director, Research and Alliance, Statewide Organizer, Eastern Washington
Development Services Unit
Cherryl Jackson Williams, City of Seattle,
Lillian Ferraz, Project Manager, Community Recreation Specialist, Western Washington
Reinvestment Plan
Antoinette Walker, Licensed Counselor, Western
Washington Statewide Reentry Council Washington
The Homeownership Disparities Work Group Ghynecee Temple, Licensed Psychologist/EDI
Consultant, Western Washington
Washington State Office of Equity
Megan Matthews, Director, Office of Equity Randy Ford, Lavender Rights Project, Development
Director, Western Washington
Harriet Tubman Foundation for Safe Passage
Dr. Jesse Miller, CEO, Harriet Tubman Foundation Jermaine Williams, Freedom Project East, Eastern
for Safe Passage Washington
Korbett Mosesly, MPA, Strategic Advisor Linsay Hill, Community Healer, Western
Washington
Patricia Davis, Project Manager
Clorissa Lewis-Newell, Freedom Project WA,
Shaun Glaze, Lead Researcher Western Washington
Matt Harvey, Ph.D., Economic Researcher Cindy Sandino-Chang, Community Healer, Western
Washington
Krystal Henderson, Ph.D., Qualitative Analysis
Rhonda Tilford, Executive Director of PNW Black
Naudia Miller, Project Assistant Business Coalition
Jeff Klein, MPA, Financial Capabilities Cha Cha Sawyer, King County Play Equity Coalition
Additional assistance provided by these Special Advisors
Washington state agencies, offices and Lyle Quasim, Chair of the Black Collective,
commissions: Statewide
The Office of the Governor; the Social Equity in
Cannabis Task Force; the Office of Indian Affairs; Rosalund Jenkins, Economic Development
the Commission on African American Affairs; the Consultant, Seattle/Tacoma Metro
Commission of Asian Pacific American Affairs; the
Commission on Hispanic Affairs; the Liquor and Lynn French, Economic Development Consultant,
Cannabis Board; the Office of Civil Legal Aid; the Statewide
Office of Public Defense; the Department of
Children, Youth and Families; the Department of Regina Glenn, Economic Development Consultant,
Financial Institutions; the Department of Health; the Statewide
Department of Social and Health Services; the
COMMUNITY REINVESTMENT PLAN REPORT 2
2.0
Henry Yates, Economic Development Consultant, Dunk; Tanikka Watford; Tanisha Roberts; Tanisha
Seattle/Tacoma Metro Antoine; Tina Vlasaty; Tish Boyd; Toby Joseph;
Toby Joseph Sr.; Toshiko Grace Hasegawa; Zaurel
Community Researchers Blue; Zoe Barker-Aderem
Vanna Sing, Southeast Asian Communities
This report is dedicated in loving memory of our
Adam Powers sister, friend, and co-conspirator for justice, Patricia
Davis (1961—2023), whose dedication and skill in
Krista Perez, Hispanic/Yakima Communities managing this project were crucial to bringing the
report to fruition. Her spirit continues in the good
Kendra Jones, Recently Incarcerated/Reentry
that will come about through the Community
Providers
Reinvestment Project.
John Sim
Washington State Department of Commerce
Special thanks 1011 Plum St. SE
Addie Craig; Ann Campbell; Anna Batie Kuka; P.O. Box 42525
Annette Case; Anzhane Slaughter; Arvin Mosley; Olympia, WA 98504-2525
Avon Curtis; Baionne Coleman; Barbie Seifert; Brett
www.commerce.wa.gov
Theodos; Bethany Montgomery; Brittany Kirk;
Brittany Lovely; Carol Edson; Cat Goughnour; For people with disabilities, this report is available
Clarissa Fletcher; Che Wong; Christina Blocker; on request in other formats. To submit a request,
Christopher Tyson; Chuck Depew; Colette August; please call 360-725-4000 (TTY 360-586-0772)
Corwin Scott; Corey Credit; Daniel Smith; Dannette
Molina; Darrell Powell; Dawn Mason; Debbie Lacy;
Desiree Cheung; Deborah Howell; Dr. Karin Martin;
Dr. Janice Green; Louis A. Harris; Dr. Paul Jackson;
Duaa-Rahemaah Williams; Eric Upchurch; Erin
López Nielsen; Emerald Engrum; Elijah Benn; Gail
Alexis Ray; Jacques Colon; Jahmad Canley;
Jasmine Vasavada; Jasmyn Jefferson; Jeff
Robinson; Jeremy Walker; Jim Bamberger; Jim
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Galow; Joseph Todd; Julia Havens; Julio Diaz;
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Taylor; Karlton Daniels; Karen Robinson; Katie
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Louis Cooper; Les Pogue; Linda Bang; Linda Lee
Womack; Lindsay Morgan-Tracy; Lorrie Thompson;
Louis Harris; Lyn Peters; Lynn Longan; Mandee
Figueroa; Martinique; Mandy Lee; Margaret Gilbert;
Marissa Joy VanHoozer; Mansour Camara; Maria
Soguenza; Marvo Reguindin; Michael Brown; Mi-
chael Jordan; Michelle Gladstone-Wade; Michelle
Merriweather; Mike Loftin; Misha Werschkul;
Nadine Gibsen; Norma Chavez; Paul Patu; Philippe
Knab; Rashad Norris; RaShelle Davis; Rhonda
Fletcher; Shannon Halberstadt; Shantel Patu; Soo
Ing-Moody; Starcia Ague; Sabian Pleasant; Steve
COMMUNITY REINVESTMENT PLAN REPORT 3
ee
THE HARRIET TUBMAN
FOUNDATION FOR SAFE PASSAGE
info@htffsp.com
HARRIET TUBMAN
L
OUNDATION FOR SAFE PASSAGE
“| have heard their groans and sighs, and seen their tears, and | would give every drop of blood in my veins to
free them.” — Harriet Tubman
In that spirit, the Harriet Tubman Foundation For Safe Passage has written the Community Reinvestment
Plan on how $200 million will be invested in communities disproportionately harmed by the war on drugs in
Washington State.
This community reinvestment plan directs how funds are distributed to address racial, economic, and social
disparities in communities across the state created by the historical design and enforcement of state and
federal criminal laws and penalties for drug possession. The funding is for the fiscal years 2024-2025. The
Harriet Tubman Foundation For Safe Passage wrote this Community Reinvestment Plan in collaboration with
community members across Washington, and the many hard-working civil servants at the Department Of
Commerce, Office of Equity, Department of Financial Institutes, and more.
As a long-time Washington resident, grassroots activist, and person who was incarcerated and impacted by
the war on drugs myself, | am honored to do this work. | will proudly say that | am living the dream of
working to end systematic racism in Washington State, so | know what is possible. Dreams come true when
you believe in them and work towards them. It takes work. This work will need you to step out of your
comfort zone and leave your worry behind. This work is for those who have faith in humanity. Now is our
time to work together to make the dream of peaceful, healthy, prospering, safe communities for all a reality.
The first steps to creating solutions are recognizing the real problems, assessing the symptoms and facing
the core issues. Washington State has recognized the effects it has had on some of its community members
and stepped up to the plate to own up to its harmful historical actions such as mandatory minimum
sentences, three strikes law, and racial red-lining; which all had disproportionately negative impacts effects
on Black and Indigenous People of Color. Those rulings, directions, and decisions from the Reagan-era war
on drugs policies had negative ramifications and ongoing actions that are felt deeply today.
On the following pages, you will read a plan to address systematic harm caused by war on drugs laws and
beyond. Ways of operating in Washington historically and disproportionately had bias and expressly more
negative effects on communities of color. A war on the community that increased incarceration rates sent
parents to prison and children to be raised by the streets, family members, or the state. Loss of homes,
broken family bonds, separation, victimization, and community deterioration resulted. At the same time,
long-term economic punishment by labeling people felons and hindering Washington residents’ careers,
housing, and educational opportunities for years after serving their sentence hurt an already hard-hit sector
of the workforce/economy.
This plan is a starting point. This plan is the result of collaborative work; one which considers the many
reports, studies, and community advocacy done in the past. As a community leader, | see this plan as the
groundwork for community and government collaboration. A plan to create a positive impact with long-term
economic and emotional return on investment for all our futures. As we implement new policy changes
centered in equity into our health, judicial and legislative systems, the field will allow positive change to
continue.
ee
THE HARRIET TUBMAN
FOUNDATION FOR SAFE PASSAGE
info@htffsp.com
HARRIET TUBMAN
FOUNDATION FOR SAFE PASSAGE
Change is made by educating and inviting Washington residents from all walks of life to participate in the
government process. This plan is only as good as the people who implement, provide services and hold
standards of high accountability and improvement in the process of participation between the community
and government. This is not an “us” or “them” plan; this is a “we” plan. Washington State is a state of caring
individuals contributing to the community's enrichment, well-being, and wholeness. So please join in and
read the plan! We purposefully kept it short and in a form that excites you to participate in some form or
another.
Whether you are a by-and-for nonprofit organization, service provider, financial, technical assistance
provider, or small business owner looking to apply to participate in providing these services to the
community or a person impacted by the war on drugs and looking to get access to the various resources in
this plan, we need you to do so! Please plug into the help or become the resource to bring equity to those
harmed by the war on drugs. So get your record sealed, pay your LFOs, and increase your financial assets by
buying a home or growing your business with small business grants/ loans and on-the-job training of
employees, with 50-75% of those wages subsidized. There is more inside the plan, so don't stop reading
here! This plan has a place for you! It's time to make some of your dreams for yourself and the community a
reality. Time to go to work!
Sincerely,
Dr. Jesse Miller
CEO Harriet Tubman Foundation for Safe Passage
The Department of Commerce and the Office of Equity share a vision for Washington: strong, vibrant
economies and communities where everyone has full access to the opportunities, power, and resources they
need to flourish and achieve their potential. At the direction of the Legislature, our agencies worked together in
deep partnership with community members to develop a plan that would achieve this vision for communities
most harmed by the war on drugs. Washington is one of the best – and few - places in the nation to embark on
a community reinvestment project of this scale.
As you will see in this report, evidence is clear that the historical design and enforcement of state and federal
criminal laws and penalties for drug possession disproportionally harmed the health and well-being of Black,
Latino and Indigenous families and communities in Washington. We are committed to advancing a pro-equity,
antiracism ecosystem here, and are excited about the opportunity to work alongside the community to make
government work for all in Washington. Both state and federal governments are taking steps to reevaluate the
judicial system and drugs – the state amending possession laws based on court rulings and support from the
Biden administration for those who were incarcerated for small possession of marijuana. It’s clear that now is
the time to reinvest in communities harmed by these inequitable laws.
How we lead depends on how we govern. Policymakers, agency leaders, and state employees have the
chance every day to change the way we work, transforming government from institutions that serve only a few
to institutions that promote equity for all of us in Washington. From the very first meeting to develop this
Community Reinvestment Plan, we weighed the significance of this moment in our state’s history, discussing
what it meant for us, as state government, to address such a wide range of community harms.
Our approach to this project was to co-design with the people impacted by this work and incorporated adaptive
processes to meet their needs. We collaborated across and outside of government and used a whole-
government approach to lay out recommendations intended to achieve real, lasting community-level impacts.
We put this shared vision into practice with a commitment to collaborate internally and externally to break down
silos, barriers, and hierarchies. As a result, we were able to focus on the voices and values of the people we
serve. We worked with By and For organization leaders from communities harmed by the war on drugs and
were supported enormously by the efforts of the Harriet Tubman Foundation for Safe Passage and their
community partners. Successful implementation of the Community Reinvestment Plan will require ongoing,
intentional, and transparent collaboration between the government and the community partners and families
who will benefit from these investments. And it won’t stop there; as we roll out these programs and release
funding, we will rely on community partnership to ensure these programs are accessible and benefit the
necessary communities.
We designed the Community Reinvestment Plan to result in long-term benefits in the form of community
healing, new jobs, home ownership, job retention, increased personal wealth, and higher incomes. We believe
this powerful and necessary project will result in outcomes that benefit our entire society. While the two-year,
$200 million project will begin to redress some of the racial, economic and social disparities within communities
across the state caused by racist and oppressive policies of years past, continuing these investments beyond
the biennium is critical to stabilize the programs and broaden their reach, and to measure the long-term
success of this project. After we implement the Plan in the coming months, we will engage in conversations
about continued funding for the work.
This is not the first investment in communities harmed by the war on drugs, but it can be the most impactful
innovation yet, and deserves more conversations and actions to deepen our investments beyond this plan and
implementation. We ask for partnership with the Legislature, community partners, and the whole of government
to take more than these first, important steps; we ask that we continue this work together until our shared
vision is a reality.
Michael Fong | DIRECTOR Megan Matthews | DIRECTOR
Washington State Department of Commerce Washington State Office of Equity
-2-
Table of Contents
Executive summary...................................................................................................................................... 5
Introduction ............................................................................................................................................... 11
Methodology ............................................................................................................................................. 16
Community Reinvestment Plan funding recommendations ......................................................................... 22
Programmatic guidelines ........................................................................................................................... 24
Funding distribution ................................................................................................................................... 28
Estimating long-term economic benefits .................................................................................................... 32
Monitoring and evaluation ......................................................................................................................... 35
Appendix A: Recommendation details ........................................................................................................ 37
Appendix B: Economic development approach ........................................................................................... 80
Appendix C: Money multiplier methodology................................................................................................ 85
Appendix D: Defining and evaluating "By and For" ....................................................................................... 87
COMMUNITY REINVESTMENT PLAN REPORT 4
Executive summary
In 2022, the Washington State Legislature set aside $200 million in the Community Reinvestment Account1 for
the Department of Commerce (Commerce) to invest in communities disproportionately harmed by the
historical design and enforcement of state and federal criminal laws and penalties for drug possession. Before
authorizing Commerce to distribute this funding, the Legislature directed the agency to develop a Community
Reinvestment Plan (CRP) to guide funding distribution from the Community Reinvestment Account.2 This final
report outlines recommendations to implement $200 million in state resources that the Legislature
appropriated to Commerce in the 2023-25 operating budget (Chapter 475, Laws of 2023 (SB 5187)).
Commerce, in collaboration with state and community partners, including the Office of Equity, will distribute
the funds through 17 grant programs falling across four program areas: economic development, civil and
criminal legal assistance, community-based violence intervention and prevention services, and reentry
services, in alignment with the recommendations detailed in this report.3
Authorizing legislation
Section 128(134) of Chapter 297, Laws of 2022 (SB 5693) (the 2022 Supplemental State Operating Budget)
directed:
(134) $1,000,000 of the general fund—state appropriation for fiscal year 2023 is provided solely for the department to
develop a community reinvestment plan to guide the distribution of grants from the community reinvestment account
created in section 947 of this act.
(a) The department shall, in partnership with the office of equity, and "by and for community organizations" as
defined by the office of equity, develop a community reinvestment plan for how funds would be distributed to
address racial, economic, and social disparities in communities across the state created by the historical design and
enforcement of state and federal criminal laws and penalties for drug possession. The community reinvestment plan
should address funding in the following areas:
(i) Economic development, which includes addressing wealth disparities to promote asset building such as home
ownership and expanding access to financial resources including, but not limited to, grants and loans for small
businesses and entrepreneurs, financial literacy training, and other small business training and support activities;
(ii) Civil and criminal legal assistance to provide post-conviction relief and case assistance, including the
expungement of criminal records and vacation of criminal convictions;
(iii) Community-based violence intervention and prevention services; and
(iv) Reentry services to facilitate successful transitions for persons formerly incarcerated in an adult correctional
facility or juvenile residential facility in Washington.
(b) The plan must include a timeline for regular review by the department and the office of equity, criteria for eligible
communities and programs, development of accountability measures to ensure that distribution and use of funding
meets intended purposes, and tracking of outcomes for the funds. At a minimum, the plan must address how the
community reinvestment account funding will:
1 See RCW 43.79.567, and ESSB 5693-S.SL.pdf (wa.gov); and Community Reinvestment Account Programming - $200 million NEW
SECTION. Sec. 719.
2 See ESSB 5693-S.SL.pdf (wa.gov) Section 128 Community Reinvestment Account Plan - $1 million
(134).
3 See ESSB 5187-S.SL.pdf (wa.gov) – Biennium Budget FY24-25, Section 129(42).
COMMUNITY REINVESTMENT PLAN REPORT 5
(i) Produce significant long-term economic benefits to the state, a region of the state, or a particular community in
the state;
(ii) Result in significant long-term economic benefits in the form of new jobs, job retention, increased personal
wealth, or higher incomes for citizens of the state or a particular community in the state; and
(iii) Ensure that: (A) Projects or programs do not require continuing state support; (B) An expenditure will not
supplant private investment; (C) An expenditure is accompanied by additional public or private investment; and
(D) Nonprofit, faith-based, and grassroots organizations are prioritized for funding.
(c) In developing the plan, the department is encouraged to incorporate existing and ongoing work from relevant task
forces and work groups including, but not limited to, the social equity in cannabis task force, the reentry council, and
the homeownership disparities work group.
(d) The department shall submit a preliminary report to the governor and relevant committees of the legislature by
December 1, 2022. A final report on the implementation plan must be submitted to the governor and relevant
committees of the legislature by June 30, 2023.
The preliminary report was submitted in 2022.
The Recommendations section of this report includes a plan to distribute funds to the four program areas
(economic development, civil and criminal legal assistance, community-based violence intervention and
prevention, and reentry services) as required by the authorizing legislation. The recommended investments
incorporate existing and ongoing work from relevant task forces and work groups, including the Poverty
Reduction Work Group, the Social Equity in Cannabis Task Force, the Reentry Council, and the Homeownership
Disparities Work Group. The recommendations include an estimate of the long-term economic benefit to the
state. The complete narrative for the long-term benefits can be found in the Estimating long-term economic
benefits section.
The funding distribution section explains the oversight and monitoring of the CRP implementation. The
evaluation section explains the accountability measures for the programs. Consistent with the direction of the
Legislature, the CRP prioritizes the investment of funds in "nonprofit, faith-based, and grassroots
organizations," and particularly By and For organizations led by and serving communities and individuals
harmed by the war on drugs.
As shown within this plan, the recommended investments will result in long-term economic benefits to the
state or a particular region or particular community in the state and result in long-term economic benefits as
new jobs, job retention, increased personal wealth, or higher incomes. The grant programs will not supplant
active private investment.
The legislative direction for this plan requires that the identified "[p]rojects or programs do not require
continuing state support" and that "[a]n expenditure is accompanied by additional public or private investment."
This plan describes expansion of certain existing grant programs and recommends that Commerce stand up
several new programs. Some but not all of these programs will be co-designed with additional private or state
or federal investment. There will be efforts to leverage philanthropic dollars to extend or support these
investments. At the same time, while the investments envisioned do not require continuing state support, plan
implementation will necessitate the creation of infrastructure, staffing and systems to support a complex set
of programs. These investments will begin to address racial, economic and social disparities within
communities across the state, but continuing these investments beyond the biennium will be necessary to
stabilize the programs and broaden their reach, and to measure the long-term success of this project.
COMMUNITY REINVESTMENT PLAN REPORT 6
The government-created laws and punishments for drug offenses unjustly targeted specific communities and
individuals in America. In Washington, the disparate impact was on Black, Latino and Indigenous
neighborhoods and people. This perpetuated existing disparities within those populations. Mass incarceration
separated and continues to separate families, just as criminal records and legal financial obligations
exacerbate economic disparities and challenges associated with access to housing, employment, education,
health care and other fundamental pillars that create wealth and family stability. While the two-year, $200
million Community Reinvestment project will begin to redress some of this inequity, continuing support of this
initiative will be necessary to make a significant long-term difference. While this project calls for programs that
"do not require continuing state support," ongoing government support for these investments will be needed
and is appropriate to address the disparities created by the government's design and enforcement of state and
federal criminal laws and penalties for drug possession.
Goals and objectives
In partnership with the Washington State Office of Equity, By and For4 organizations, and community partners,
Commerce engaged communities to develop a plan describing recommendations to distribute funding from
the Community Reinvestment Account. The funds will begin to address racial, economic, and social disparities
created by the historical design and enforcement of state and federal criminal laws and penalties for drug
possession, referenced as the "war on drugs."
Through a competitive procurement process, Commerce selected the Harriet Tubman Foundation for Safe
Passage (HTFFSP) to lead a nine-month planning effort focused on community engagement, research, and
analysis to inform the creation of the CRP. This report includes findings and recommendations from
community members impacted by the war on drugs across Washington.
Key findings
Data demonstrating the disproportionate racial, economic and social impacts of the design and enforcement
of state and federal criminal laws and penalties for drug possession support the recommendations in this
report. The research focused on the structural barriers disclosed through feedback gathered from community
members, in addition to place-based and race-based analyses.
Qualitative data collected through focus groups, interviews, kiosks,5 and other means of communication
revealed several key messages and themes. One prominent theme was the importance of community
engagement and outreach. There was a strong emphasis on reaching out directly to communities impacted by
the war on drugs and actively recruiting community advisors and researchers. Participants stressed the need
to involve people who have experienced incarceration and family separation, and those with other lived
experiences with the legal and social impacts of the war on drugs. Intergenerational involvement was
highlighted as crucial, especially in connecting youth to their roots and ancestors. Additionally, participants
emphasized the significance of engaging with communities directly impacted before launching large-scale
communications campaigns.
4 For purposes of the development of this Plan, HTFFSP used a definition of "By and For organization" developed by the nonprofit 501
Commons. A By and For organization is a part of a community of people that see themselves as unique and defined by the members’
identities, traditions, and values. A By and For organization is one where leadership and staff belong to the same community they serve,
promote, and work to preserve. By and For organizations build trust, advocate, respond, and solve problems specific to community
members. By and For organizations have roots in their respective communities as change agents and providers of mitigating systems
of community service. They invest in and work with community members to improve their quality of life
5 Kiosks with interactive tablets were distributed at community locations including parks, malls and small businesses.
COMMUNITY REINVESTMENT PLAN REPORT 7
A multiplicative index was created using unemployment rates, the percentage of people of color, and the social
vulnerability index to identify the most affected communities. This index was combined with an analysis of
violent crime rates, incarceration, and recidivism data. This process identified six Washington counties with
both a high number of affected communities and a high number of justice system-involved persons. These six
counties are priority areas for focused intervention and support:
Clark
King
Pierce
Snohomish
Spokane
Yakima
This report recommends that 64% of the allocations be distributed to target areas in these six counties. The
remaining 36% of funding supports economically disadvantaged areas of opportunity across the state.
Recommendations
The final recommendations resulted from an iterative group decision-making process led by HTFFSP. In
January 2023, the HTFFSP team met to review the CRP focus group data, recommendations from previous
state agency reports, qualitative and quantitative data, and initial feedback from those with lived experience.
Beginning with and centering these voices, the HTFFSP, an organization comprised of over 95% of people with
lived experience in the war on drugs, developed more than 25 recommendations. Over the next several months,
HTFFSP collaborated with leaders in By and For organizations, online surveys, the CRP Advisory Board, state
agency subject matter experts, and others to come to the final recommended funding streams for distribution
of the $200 million from the Community Reinvestment Account.
Figure 1: Research centers voice and recommendations of those with lived experience
Voices and Scope/Contextual Research Rooted
Recommendations Geographic and in Voice of those
from Previous CRP Focus Groups Demographic Harmed by the
Reports Datasets war on drugs
The CRP recommends $200 million in community investments implemented through three state agencies
within the four program areas identified by the Legislature. Table 1 describes the recommended investments
in detail. Implementation of these recommendations will begin in July 2023 and continue throughout the
biennium as Commerce and other agencies issue requests for proposals and contracts, hire and onboard
support staff, and in some cases fold CRP resources into existing programs. Programmatically, the
recommendations distribute the Community Reinvestment funding as follows:
Economic development: $138 million
Civil and criminal legal assistance: $8 million
Community-based violence intervention and prevention services: $30 million
Reentry services: $12 million
COMMUNITY REINVESTMENT PLAN REPORT 8
As shown in Table 1, $12 million will be used by Commerce to guide the successful implementation of this
work and provide support and technical assistance to communities. These recommendations can potentially
create up to $1.6 billion in economic benefits.
Table 1: Community Reinvestment Plan recommendations
Investment Purpose Responsible Amount
Enabling Factors
Local Advisory Teams Oversight Commerce $8 million
Technical Assistance Implementation Commerce $4 million
Economic Development
Subsidized Lending
Loan Guarantee Fund Increase assets Commerce $17 million
Black, Latino and Indigenous-Led Lending Agency Support Increase assets Commerce $15 million
Homeownership Capital Accelerator Increase assets Commerce $15 million
Financial Assistance
Individual Development Accounts Increase assets Commerce $25 million
Blended Capital Enhancements Increase assets Commerce $25 million
Cannabis Business Grants Increase assets Commerce $3 million
Outreach and Support
Asset Building Initiatives Increase assets Commerce $3 million
Financial Coaching and Mentorship Increase assets Commerce $10 million
Workforce Development
EcSA Career Accelerator Incentives Increase income Employment Security Department $10 million
EcSA Business Support Increase income Employment Security Department $15 million
Civil and Criminal Legal Assistance
Vacating Criminal Records and Legal Financial Obligations
Remove barriers Office of Civil Legal Aid $2 million
Relief
Legal Representation Remove barriers Office of Civil Legal Aid $6 million
Community-Based Violence Prevention
Violence Reduction Increase safety Commerce $10 million
Community Healer Increase safety Commerce $10 million
Youth Sports Capacity Building Increase safety Commerce $5 million
Barber/Beauty Shop Health Navigation Increase safety Commerce $5 million
Reentry Services
Expanded Reentry Program Remove barriers Commerce $12 million
Total $200 million
COMMUNITY REINVESTMENT PLAN REPORT 9
Note: Funding will be allocated to administrative costs to ensure an appropriate percentage (estimate 5-6%) is available to
support staff and contractors needed to successfully implement, coordinate, and manage the recommended grant
programs.
For a detailed discussion of each of these programs and the rationale for the funding recommendation, please
see Appendix A.
The war on drugs
In 1971, President Richard Nixon officially declared a war on drugs, announcing that drug abuse was now
“public enemy number one.” Following this announcement, drug use officially became a criminal issue,
and Nixon began proposing strict measures for drug-related crimes, including mandatory minimum
sentences for both drug possession and distribution. Two years later, his administration founded the Drug
Enforcement Agency, a special police force designed to target illegal drug use and smuggling in the
United States.
However, the war on drugs was never a long-term policy goal. According to Nixon’s domestic policy chief,
John Ehrlichman, the Nixon campaign did not intend the new policies to be about drug reform itself; they
were instead meant to oppress “the antiwar left and black people.” This revealed the truth about the war
on drugs: It was essentially a war on the poor and other marginalized people.
The war on drugs continued in the 1980s as a crack cocaine epidemic began to sweep the nation.
President Ronald Reagan reinforced and expanded many of Nixon’s anti-drug policies, arguing that drug
use was a “repudiation of everything America is.” The 1986 Anti-Drug Abuse Act granted $1.7 billion for
law enforcement to fight the drug war and established further mandatory minimum sentences for drug
offenses. Much of this legislation was racially discriminatory. For example, possession of five grams of
crack cocaine, which was disproportionately consumed by African Americans, triggered an automatic five-
year jail sentence, 500 grams of powder cocaine — 100 times that, and which was mostly consumed by
richer white people — merited the same punishment.
Harsh drug sentencing continued into the 1990s. The Clinton administration adopted the Violent Crime
Control and Law Enforcement Act of 1994, a $30 billion bill that funded 125,000 new state prison cells,
mandated life sentences via three strikes laws, and added 60 new crimes subject to the death penalty.
Between 1980 and 1997, the number of people incarcerated for non-violent, drug-related crimes rose from
50,000 to 400,000.
In the last 40 years, the number of people convicted of drug-related crimes has risen more than 500%, now
making up almost half of the federal prison population. These policies have perpetuated cycles of poverty
and unemployment in low-income communities while disproportionately impacting people of color. Black
people are more than 3.5 times more likely to be arrested for cannabis possession than their white
counterparts, despite both groups using the drug at similar rates. African Americans and Latinos
comprise more than 60% of the U.S. prison population.
COMMUNITY REINVESTMENT PLAN REPORT 10
Introduction
Purpose and background
In 1971, President Richard Nixon declared a “war on drugs."6 On the surface, this initiative aimed to combat
drug abuse on the supply and demand sides, but in practice, it targeted specific disadvantaged communities,
particularly Black Americans, through the way it was implemented and enforced.7 A disproportionate number
of the laws and policies focused on criminal justice enforcement and punishment for drug offenses. The laws
were enforced more intensely in some communities, like those with higher numbers of Black Americans —
triggering disparate and systematic changes in the legal system. In the decades since, the escalation of mass
incarceration continues to disproportionately impact Black, Indigenous, and Latino individuals in Washington
by restricting voting rights, economic achievement, wealth building, and educational attainment.8
The resulting arrests and convictions affected more than the people caught in the criminal legal system –
incarceration creates struggles that disrupt families, neighborhoods, and communities.
In 2012, the legalization of recreational cannabis in Washington significantly reduced the number of cannabis-
related arrests, but the racial disparities in drug enforcement are institutionalized in the design and
implementation of federal and state legal systems coming out of the war on drugs. For example, even in states
that have legalized cannabis, research shows that Black Americans are much more likely to be arrested for
cannabis-related offenses as white Americans,9 adversely affecting their ability to secure housing and
employment and generate wealth. In Washington, while overall arrest rates declined markedly since
legalization, Black adults are still five times more likely to be arrested for cannabis-related offenses than white
residents10, even though Black residents consume cannabis at similar rates to white adults in the state.11
Project approach
Centering those with lived experience
For this work, HTFFSP defines "lived experience" as having experienced or witnessed first-hand the impacts of
the inequitable design and enforcement of state and federal criminal laws and penalties for drug possession
and manufacturing. For focus groups and interviews, this definition was narrowed to people who have
experienced the most direct harm from drug policies, meaning individuals who have been incarcerated due to
charges for the sale or manufacture of illicit drugs or have at least one close contact with people who have
been incarcerated for drug possession charges.
6 Social Construction of Drug Problems: An Historical Overview, by E. L. Jensen and J. Gerber, retrieved at
https://www.ojp.gov/ncjrs/virtual-library/abstracts/social-construction-drug-problems-historical-overview-new-war-drugs.
7 Legalize It All: How to win the war on drugs, by Dan Baum. Retrieved at https://harpers.org/archive/2016/04/legalize-it-all/.
8 A Tale of Two Countries, by the American Civil Liberties Union, retrieved at https://www.aclu.org/wp-content/uploads/legal-
documents/marijuanareport_03232021.pdf.
9 Ibid.
10 Firth CL, Maher JE, Dilley JA, Darnell A, Lovrich NP. Did marijuana legalization in Washington State reduce racial disparities in adult
marijuana arrests? Subst Use Misuse. 2019;54(9):1582-1587. doi: 10.1080/10826084.2019.1593007. Epub 2019 May 16. PMID:
31096823; PMCID: PMC6948106.
11 2018 Washington State Health Assessment, retrieved at https://doh.wa.gov/sites/default/files/legacy/Documents/1000/SHA-
MarijuanaUse.pdf. See also Racial and Ethnic Differences in Cannabis Use Following Legalization in US States With Medical Cannabis
Laws - PMC (nih.gov), retrieved at https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8477268/.
COMMUNITY REINVESTMENT PLAN REPORT 11
Figure 2: Co-creation in research and design
It was important to the development of the recommendations in the CRP that the consultant team was
comprised of people with lived experience in the war on drugs as the core expertise. The team also included
people with skills and expertise in the four program areas of funding through leadership and work in non-
profits, government, foundations, and higher education. Bias was an open discussion, with team members
regularly using shared data to argue for or against funding streams based on their own identities. Through
these conversations, lived experience stayed central to ensure everyone's concerns could be included in the
discussion of how to orient funding at the community level.
COMMUNITY REINVESTMENT PLAN REPORT 12
Figure 3: Community Reinvestment Plan Mural
Image credit: Mandee Figueroa and Inclusive Data
The above image was created as a summary of several 2022 and 2023 focus groups. It synthesizes the
feedback and hopes of the participants, and how they wanted to position their voice in relation to the CRP
priorities and implementation. This image speaks to the passion and commitment communities have about
the project as an opportunity to address the harms caused by the war on drugs. It underscores the ongoing
harm and offers a visceral description of how participants feel about the structural violence facing their
everyday lived experiences. Like many themes covered in this work, the underlying importance of approaching
it from a perspective of healing can be felt through the images and direct quotes of the focus group
participants.
Desired results
We encourage a clear articulation of the desired end conditions in the community, focusing on areas where
direct influence can be exerted. Aligning community indicators, government strategies, and performance
measures maximizes the potential for impact. Ultimately, to effect change in community conditions,
government entities must collaborate with other institutions and engage the community as partners.
This plan proposes the following community-level indicators to help assess the progress in addressing racial,
economic, and social disparities faced by the Black, Indigenous, and Latino communities. By monitoring these
indicators, government entities can evaluate the impact of their strategies and programs and make data-driven
decisions and adjustments to promote equitable outcomes and improve community conditions.
Community level indicators
1) Racial disparities
COMMUNITY REINVESTMENT PLAN REPORT 13
a) Improved outcomes for Black, Indigenous, and Latino homeownership rate: Measure the change in
homeownership rates specifically for these communities to assess progress in reducing disparities in
access to homeownership.
b) Funding allocation: Monitor the percentage of funding specifically directed towards programs and
initiatives that address the needs and priorities of populations most impacted by structural racism and
the war on drugs, specifically Black, Indigenous, and Latino communities.
c) Community well-being measures: Measure and track the holistic well-being of communities,
disaggregated by race, taking into account factors such as trust in their own abilities to thrive, trust in
institutions, access to culturally relevant quality training, and economic opportunities.
2) Economic disparities
a) Percentage of households above the ALICE (Asset Limited, Income Constrained, Employed) threshold:
Monitor the percentage of households from Black, Indigenous, and Latino communities that have
income above the ALICE threshold, indicating financial stability and economic well-being.
b) Percentage of households below 200% of the Federal Poverty Level (FPL): Measure the proportion of
households from these communities living below 200% of the FPL, indicating the extent of economic
vulnerability and poverty.
3) Social disparities
a) Health disparities: Track and compare health outcomes, such as reducing youth violence and
aggravated assaults, improving life outcomes and expanding opportunities, and measuring the positive
experience of participants who receive support.
b) Civic engagement: Measure the number of partnerships with By and For organizations, the percentage
of funding distributed to By and For organizations, and increase the percentage of residents who
believe they can have a positive impact on their community and express trust in the public institutions.
c) Mental health and healing outcomes: Measure the availability and utilization of resources that support
intergenerational healing and learning within affected communities, such as culturally relevant training,
experiences, services, coaching, counseling, community-led support groups, and programming focused
on mental and spiritual impacts. Track mental health indicators, such as rates of anxiety, depression,
and trauma symptoms, among individuals and communities disproportionately impacted by the war on
drugs.
The Legislature directed the CRP to be developed in partnership with By and For organizations. Commerce was
encouraged to incorporate existing and ongoing work from relevant task forces and work groups, including but
not limited to the Social Equity in Cannabis Task Force, the Washington Statewide Reentry Council, Poverty
Reduction Work Group, and the Homeownership Disparities Work Group.
Allocation approach
The Community Reinvestment Account allocation approach embodies the deliberative participatory budgeting
process. The process started with formulating preliminary investment recommendations conceived by
individuals with lived experience, key stakeholders, and subject matter experts. However, the distinguishing
aspect of this approach is the iteration and refinement of these proposals. Community organizations,
COMMUNITY REINVESTMENT PLAN REPORT 14
particularly established By and For organizations adversely affected by the war on drugs, worked alongside
Commerce and the Office of Equity to develop these recommendations. These organizations are listed in the
acknowledgements section of this report.
The overarching objective of the deliberative participatory budgeting process is consensus building. Rather
than opting for proposals based on simple majority vote, the aim is to ensure each decision garners
widespread agreement. By engaging directly with the affected communities and integrating their insights into
the decision-making process, the Community Reinvestment Account allocation approach empowers these
communities and ensures the investments are attuned to their needs and priorities.
COMMUNITY REINVESTMENT PLAN REPORT 15
Methodology
Centering people with lived experience
For purposes of development of the Community Reinvestment Plan, the HTFFSP defined "lived experience" as
having experienced or witnessed first-hand the impacts of the inequitable design and enforcement of state and
federal criminal laws and penalties for drug possession and manufacturing. Focus groups and interviews were
directed to people who have experienced the most direct harm from drug policies, meaning individuals who
have been incarcerated due to charges for the sale or manufacture of illicit drugs or have at least one close
contact and those who have been incarcerated for drug possession charges.
Using lived experience as the primary qualifier, the consultant firm expanded to include community advisors
and community researchers to ensure the research process was accountable to and led by the communities
harmed by the war on drugs. These trusted and credible messengers ensured robust participation with
methods that can increase the involvement of communities seldom heard by traditional community
engagement. For example, engagement with mutual aid organizations for people experiencing homelessness,
which are often small and hyper-local, and "barbershop conversations" with seniors who typically are not best
served online.
Throughout the project, the HTFFSP instituted many ways to solicit input:
Informed: 70 organizations, including state commissions, legislative contacts, Community Development
Financial Institution (CDFI), nonprofits, community organizations, and advocacy groups.
Consulted: 60 organizations, including community-based organizations, development councils, youth
organizations, and philanthropic partners.
Involved: 24 organizations, including large commissions, departments, and nonprofits.
Collaborated: 37 organizations, including focus group participants, small business networks, reentry-
focused community organizations and people, tribal liaisons, community healers, and other community
advisors.
In addition, the project elicited the following involvement:
• 289 focus group attendees
• 18,975 website views
• 1,028 in-person interactions about the work
Data and research justice
Traditional research has been criticized by some because of its legacy of erasure of the community’s voice
and the underreporting of community solutions. This systematic underrepresentation of communities harmed
by policies has cultivated a mistrust of traditional research, especially that conducted by the government.
One challenge for this work was the nuance required when doing research on behalf of Washington state
government in a way that adequately recognizes the specific harms done to diverse communities. In many
cases, the outcomes for communities are intertwined (such as long-standing economic deprivation), but the
specific strategies they seek for relief and reinvestment differ. This research will not undo centuries of
systemic harm overnight, but has provided many new and meaningful ways to participate, educate, review, and
refine the government funding process. The HTFFSP created a research process that acknowledged the harms
and outlined tangible solutions to help address some of the impacts of structural racism.
COMMUNITY REINVESTMENT PLAN REPORT 16
Data justice aims to capture forms of knowledge and lived experiences that are community-centered and
community-driven to counter the systemic erasure and harm perpetrated onto Black, Indigenous, and Latino
communities via oppressive data practices. The fundamental premises of data justice are that data should:
Make community-driven needs, challenges, and strengths visible
Be representative of the community
Treat data in ways that promote community self-determination
Community-Based Participatory Action Research (CB-PAR) was the cornerstone of this project. CB-PAR is a
collaborative research approach that involves all stakeholders throughout the research process, from
establishing the research question to developing data collection tools to data analysis and reporting on
findings. This framework aims to address the practical concerns of the community and fundamentally
changes the roles of the researcher and who is being researched. The CB-PAR framework begins with a
community’s issue, proposed action, or strategy. Then it supports or enhances this action with community-
based and engaged research.
Iteratively designed recommendations
The recommendations in this plan were drafted iteratively with community members, stakeholders, and
researchers. Stakeholder feedback was brought to community advisors in multiple formats, including video-
based reports, text messages and direct conversations. The research team prioritized being accessible to
community advisors in the approaches and timelines that worked best for the advisors. Stakeholders offered
crucial feedback on how implementation might be made more difficult by the recommendations. This
feedback was valued by the project team, as well as the community members who were able to hear it directly
in podcasts or Zoom calls as we reviewed recommendations.
“There is no perfect team - nor are there perfect resources - there is instead a wide range of plausible
combinations. Knowing that you have enough people with enough awareness, knowledge, and comfort
with ambiguity and connections to make the case. That’s the key. Even if you don’t get everything, knowing
how to utilize what you’ve got. That’s essential. That and power-sharing.” — a BIPOC, senior policy advisor
in Washington
The HTFFSP considered any recommendations for opportunities that produce long-term economic benefit, did
not require continued support, and accompanied public or private investment for further review. In reviewing
existing recommendations, the HTFFSP also considered time/readiness to implement as factors by
considering if the recommendation supported an existing program and authority. Other factors considered
included potential alignment between plans, public involvement and available evidence.
Stakeholder interviews and priorities
The HTFFSP conducted interviews with program leads, service providers, and program participants of
economic development, violence prevention and intervention, reentry, and asset-building efforts best suited to
promote long-term economic development for people, families, and geographic regions highlighted for
reinvestment.
Initial workshops, focus groups, and stakeholder interviews were prioritized in the following order:
Key community partners identified by Commerce
Existing programs at Commerce
Other state agency programs aligned with the goals of the project
COMMUNITY REINVESTMENT PLAN REPORT 17
Asset building, economic development, and lending programs providing high-quality and high-impact
services to people and communities that fall within areas of opportunity throughout Washington
Leaders of promising practices across North America
After sharing information about the project, the HTFFSP solicited feedback by asking critical program-
specific questions to inform the plan
In addition to the 69 stakeholders who completed the survey, the project team spoke directly to community
members in one-on-one and group conversations. Stakeholders were also engaged in targeted weekly
conversations in spring 2023 to discuss the recommendations as they were being developed and vetted with
community advisors and community members.
Community voice and methodology
Data justice is about recognizing the expertise and sovereignty of the communities harmed by structural
oppression, including the harms caused by previous research and analysis efforts. One of the top
recommendations in this area is to shift the stance away from simply “listening” to the expertise of the
community and to instead recognize and defer to community expertise. This involved using a variety of
methods to collect and share information in real time with community members and stakeholders.
In contrast to a traditional process where a consultant may be engaged to facilitate a small number of town
halls, analyze the data, and report back after the work is complete, this transformative work included feedback
loops like weekly status updates, formal and informal processes for engagement, and targeted outreach.
Community members and stakeholders engaging with this process recognized that this project has felt like a
departure from traditional research processes. In spring 2023, stakeholders and community members
gathered for weeks to review initial recommendations and offer feedback on the report.
“The WA Community Reinvestment [project] is on the right track to ensure that racial, economic, and social
disparities are significantly reduced for years to come. I appreciate the team's approach regarding
interviews, focus groups, surveys, and community conversations. There are countless stories and
examples of projects and things being done on behalf of communities without involving community voices
and input. I look forward to the great work that is taking place that will shape the lives of people, especially
those of color in the future.” — Gerdon Jones, Black, juvenile rehabilitation educational provider
Community engagement
One of the central themes of this report is how to address the root causes of harm, rather than just treating the
symptoms or consequences, while recognizing the urgency of the current situation and taking action
accordingly. This approach echoes the findings of several reports, including the pivotal Poverty Reduction
Work Group’s (PRWG) 10-year plan. Similar to the PRWG, this report reflects explicitly the understanding that
focusing too narrowly on treating the manifestations of poverty has failed and continues to fail Black, Latino
and Indigenous communities across the state.
The HTFFSP heard that there needs to be unrestricted and robust investment at the community level, as well
as thoughtful and layered approaches to address both short-term and long-term benefits adequately. We have
resoundingly heard that there must be an unwavering focus on educating community members on how to
access, utilize, improve and change the systems that are currently in place. This is why this project has
focused on centering the expertise of those closest to the experience — to better understand which solutions
would best serve those impacted by the issues.
COMMUNITY REINVESTMENT PLAN REPORT 18
Voices and evidence from previous work
The existing bodies of research from the state have many specific recommendations. Like the CRP research,
the process of these reports included centering those with lived experience, ongoing collaboration with state
government, and more. These were created by By and For organizations, state government, and other non-
profit sector leaders focused on investments in communities harmed by the war on drugs. Each of the report
recommendations was considered in conversation with the new data collected during this project to point to
existing best practices.
The following are the key reports used in the project. These are referenced throughout the research and
program implementation sections for specific recommendations that were used to guide policy.
• Equity in funding: Final review of Commerce capital programs (2022) (Commerce)
• Improving Homeownership Rates for Black, Indigenous, and People of Color (2022) (Homeownership
Disparities Work Group, Commerce)
• Blueprint for a just and equitable future: 10-year plan to dismantle poverty in Washington (2021)
(Washington State Poverty Reduction Workgroup)
• Preventing Youth Homelessness (2021) (Commerce)
• United for ALICE: The ALICE Report (2018)
• Health Committee Report (2023) (The Tacoma Pierce County Black Collective)
• Office of Firearm Safety and Violence Prevention Report (2021) (Commerce)
• Biennial report of the Statewide Reentry Council (2022) (Commerce)
Qualitative data
The qualitative data collected through focus groups, interviews, and other communication revealed several key
messages and themes.
Theme 1: Community outreach and engagement
The qualitative data highlighted the crucial role of community engagement and outreach in the development
and implementation of the CRP. Participants emphasized the need to directly reach out to communities
impacted by the war on drugs and actively recruit individuals who experienced incarceration, family separation,
and other types of lived experience. The importance of creating an advisory group that reflects the diversity of
the affected communities was emphasized. Participants stressed the significance of intergenerational
involvement to connect youth with their cultural roots and ancestors. It was evident that participants believed
in the power of engaging directly with impacted communities before launching large-scale communications
campaigns. This theme highlighted the value of community voice and participation as the foundation for the
success of the implementation of the CRP.
Theme 2: Reflection on structural barriers and economic development
The qualitative data revealed the structural barriers that face communities affected by the war on drugs.
Participants recognized that financial coaching (one-on-one sessions designed to meet goals mutually set by
the client and the coach) is necessary to address the reality of expensive housing and other systemic issues.
Economic development emerged as a key priority, with participants emphasizing that addressing economic
disparities is essential to reduce imprisonment and violence. There was a clear recognition that generational
wealth and sustainability can be achieved through initiatives such as homeownership and support for small
businesses. However, participants also highlighted the challenges faced by Black-owned firms in contracting,
including extra scrutiny and inadequate support even after winning contracts.
COMMUNITY REINVESTMENT PLAN REPORT 19
Theme 3: Investment areas
The qualitative data shed light on the specific investment areas identified by participants. Economic
development emerged as the primary focus, with participants advocating for targeted investment in
underfunded communities and industries primarily run by marginalized communities. Examples included
barbershops, beauty supply, childcare, cleaning services, and landscaping services, while others talked about
growth in emerging sectors related to federal investments. Homeownership and building equity were seen as
critical for addressing the racial wealth gap and creating generational wealth. Participants also emphasized
the need for career pipelines after incarceration, providing support for business development, and addressing
workforce discrimination faced by individuals with justice involvement. Reentry services, violence prevention
and intervention, and legal assistance were other areas that participants identified as deserving of investment
to support the healing and well-being of impacted communities.
Theme 4: Funding mechanisms and eligibility criteria
The data highlighted the importance of designing funding mechanisms with low barriers to ensure
accessibility. Participants expressed a preference for video-based applications that could be complemented by
written formats for people with different accessibility needs. They emphasized the need for a transparent and
accountable process that ensures funds go directly to the community. Leveraging additional funding sources,
such as philanthropy and corporate investment, was seen as crucial to grow public funds and expand the
impact of community reinvestment efforts. Participants also highlighted the need for technical assistance to
support grant writing and increase the diversity of providers' revenue. The data underscored the importance of
community ownership and control over the funding process, ensuring that community-vetted criteria are used
to guide the allocation of resources.
Spatial and quantitative data approaches
Based on county-specific data from 2021, six counties — Clark, King, Pierce, Snohomish, Spokane and Yakima
— were identified as priority areas for targeted intervention and support.
By analyzing and presenting this data, our aim is to enhance understanding, inform decision-making
processes, and allocate resources effectively to address the challenges associated with crime, incarceration,
and recidivism in the highlighted counties. Through targeted interventions, investments can foster safer
communities, reduce crime rates, and promote successful reintegration for individuals involved in the justice
system.
In addition to the Geographic Information System (GIS) tool available through the Washington Statistical
Analysis Center, the recommendations in this report are based on conclusions using several other tools:
• The Social Vulnerability Index
• The Minority Social Vulnerability Index
• The Opportunity Atlas
• Disproportionately Impacted Area Maps
Using publicly available data from Washington Geospatial Open Data, various indicators were examined,
including unemployment rates, percentage of people of color, social vulnerability index, rates of individuals
without a high school diploma, rates of individuals living in poverty, and rates of unaffordable housing. A
multiplicative index was created using unemployment rates, the percentage of people of color, and the social
vulnerability index to target the most affected communities equitably.
COMMUNITY REINVESTMENT PLAN REPORT 20
The distribution of resources should align with the state Workforce Innovation Opportunity Act (WIOA) Adult
allocation method by region, which is a well-established and reliable method used throughout the state for
allocating resources based on need. The methodology is a formula allocation based on federal factors, which
are designed to drive funding toward areas of high poverty, high unemployment, and a high number of
disadvantaged adults:
Number of unemployed individuals in areas of substantial unemployment
Relative excess number of unemployed individuals in each local area
Relative number of disadvantaged adults in each local area
Relative excess poverty in each local area
Overall, the proposed investment strategy aims to rectify the historical inequities caused by the war on drugs,
improve community well-being, and foster long-term economic prosperity in the areas most affected by
systemic disparities and violence.
COMMUNITY REINVESTMENT PLAN REPORT 21
Community Reinvestment Plan funding
recommendations
The HTFFSP and Commerce recommend the following distribution of the $200 million appropriated to
Commerce from the Community Reinvestment Account (CRA) in the 2023-25 biennium. To the fullest extent
feasible, the funds should be distributed by geography using the WIOA adult methodology, emphasizing the six
counties identified as most impacted.
Tables 2 and 3 list key activities and programs, respectively, by tier, with tier 1 indicating those considered the
first priority.
Table 2: Implementation Tiers for CRP Programs (2023-2024)
Tier 1 Tier 2 Tier 3
Request for Proposals: July to Request for Proposals: September Request for Proposals: December
August 2023 to November 2023 2023 to January 2024
Forming and organizing local
Expanding existing programs Extended research needed
advisory teams
Existing systems of community co-
creation
Table 3: CRP investments by tier
Investment Purpose Responsible Amount Tier(s)
Enabling Factors
Local Advisory Teams Oversight Commerce $8,000,000 2
Technical Assistance Implementation Commerce $4,000,000 2
Economic Development
Subsidized Lending
Loan Guarantee Fund Increase assets Commerce $17,000,000 3
Black, Latino and Indigenous-Led
Increase assets Commerce $15,000,000 2
Lending Agency Support
Homeownership Capital
Increase assets Commerce $15,000,000 3
Accelerator
Financial Assistance
Individual Development Accounts Increase assets Commerce $25,000,000 3
Blended Capital Enhancements Increase assets Commerce $25,000,000 3
Cannabis Business Grants Increase assets Commerce $3,000,000 1
Outreach and Support
Asset Building Initiatives Increase assets Commerce $3,000,000 3
Financial Coaching and
Increase assets Commerce $10,000,000 2
Mentorship
COMMUNITY REINVESTMENT PLAN REPORT 22
Workforce Development
EcSA Career Accelerator Employment Security
Increase income $10,000,000 1
Incentives Department
Employment Security
EcSA Business Support Increase income $15,000,000 1
Department
Civil and Criminal Legal Assistance
Vacating Criminal Records and Office of Civil Legal
Remove barriers $2,000,000 1
Legal Financial Obligations Relief Aid
Office of Civil Legal
Legal Representation Remove barriers $6,000,000 1
Aid
Community-Based Violence Prevention
Violence Reduction Increase safety Commerce $10,000,000 1
Community Healer Increase safety Commerce $10,000,000 2, 3
Youth Sports Capacity Building Increase safety Commerce $5,000,000 2, 3
Barber/Beauty Shop Health
Increase safety Commerce $5,000,000 2, 3
Navigation
Reentry Services
Expanded Reentry Program Remove barriers Commerce $12,000,000 1
Total $200,000,000
Note: Funding will be allocated to administrative costs to ensure an appropriate percentage (estimate 5-6%) is available to
support staff and contractors needed to implement, coordinate and manage the recommended grant programs
successfully.
COMMUNITY REINVESTMENT PLAN REPORT 23
Programmatic guidelines
During the research phase, there was a clear call for improvement in how dollars are allocated so the dollars
reach the intended group. HTFFSP collaborated with government agencies and By and For experts throughout
the project, building a knowledge base and the following guidelines for each area. Many of these strategies are
moving forward within existing programs HTFFSP proposes to fund as-is, as well as other standout funding
strategies with Commerce and other agencies, and continues those innovative strides in grant allocation. The
following policy, fiscal, and programmatic recommendations describe grant allocation that connects
community concerns with implementation strategies.
The following is a summary of programmatic guidelines and desired outcomes for the implementation of the
CRP programs:
Evidence of partnership engagement with By and For organizations:
• Documented partnerships with By and For organizations, including those involved in the development
of the CRP.
Addressing racial disparities:
• Clearly defined strategies and actions that specifically target and address racial disparities within the
community caused in part by the war on drugs.
• Document how funded initiatives will contribute to reducing racial disparities and promoting equity.
• Performance evaluation to ensure the intended outcomes are realized.
Addressing economic disparities:
• Clear identification of wealth disparities within the community.
• Detailed plans and programs to promote asset building, including homeownership and access to
financial resources, grants, and loans for small businesses and entrepreneurs.
• Provision of financial literacy training and other support activities for small businesses.
• Reduction of burdensome processes for eligibility or program monitoring that exclude the very
communities that are prioritized.
Addressing social disparities:
• Strategies and initiatives aimed at reducing social disparities and promoting social equity within the
community.
• Documentation of community-based violence intervention and prevention services.
• Provision of reentry services to support successful transitions for individuals formerly incarcerated in
adult or juvenile facilities.
Long-term economic benefits:
• Definition of significant long-term economic benefits to the state, region, or specific community.
• Explanation of how the funded projects and programs will contribute to the creation of new jobs, job
retention, increased personal wealth, or higher incomes for individuals and families.
• Assurance that the projects or programs will not require ongoing state support and will leverage
additional public or private investment.
• Priority is given to nonprofit, faith-based, and grassroots organizations for funding.
COMMUNITY REINVESTMENT PLAN REPORT 24
Reduction of administrative costs:
• Administrative costs should be allocated and tracked by the program and minimized as much as
possible so maximum funds can be distributed to communities harmed by the war on drugs.
Priority of lived experience in program management:
• The individuals hired to implement this plan should be reflective of their service population and have
lived experience with the war on drugs.
Incorporation of existing work:
• Evidence of incorporating existing and ongoing work from relevant task forces and work groups, such
as the Social Equity in Cannabis Task Force, Reentry Council, Homeownership Disparities Work Group,
and Poverty Reduction Workgroup.
• Documentation showing how the plan aligns with the goals and recommendations of these groups.
By following these guidelines and meeting these outcomes when possible, accountability can be maintained,
and the intended purposes of the funding can be effectively achieved.
Policy recommendations
Key community recommendations on process
Healing from unjust practices: Recognize the structural racism embedded in the historical design and
enforcement of state and federal criminal laws and penalties for drug possession. This means being
explicit that this policy targeted Black, Indigenous, and Latino residents of Washington, and prioritizing
funding to undo this harm to these communities.
Access intergenerational healing: Recognize the mental, spiritual and embodied impacts of structural
racism. Community members were adamant that the harm was not just in terms of physical detention and
incarceration, but also in the harms that result from the over-surveillance, over-policing, over-incarceration,
and over-sentencing present throughout the criminal legal process. Communities are eager to talk about
harm in ways that include these impacts, and the need to access intergenerational healing.
Community-level harm and community-level listening: Consider harm from a community-level perspective,
not only individual. Community members described how important it is to consider how existing public
datasets might not adequately capture the kinds of harm and impacts that communities have experienced
and continue to experience.
Eligibility and priority
Specific eligibility varies depending on the grant program. Services should be prioritized for participants
currently enrolled in any programs identified in this plan and for Black, Indigenous, and Latino families with
children in target areas of opportunities. Organizations applying for services or to help distribute funding
opportunities should prioritize faith-based organizations, community-based organizations, grassroots
organizations, and particularly By and For organizations.
Focus areas
Our analysis of crime, incarceration, and economic data revealed that Clark, King, Pierce, Snohomish, Spokane
and Yakima are the state's top six counties in need and should receive most funding from the Community
Reinvestment Account. By identifying "areas of opportunity" within these counties through our analysis of
service gaps, we can direct focused resources to where they are most effective. To prioritize the long-term
success of underprivileged children, we recommend funding programs that enhance economic opportunities.
COMMUNITY REINVESTMENT PLAN REPORT 25
Funding should be prioritized for organizations that work in neighborhoods with children while allocating some
of the dollars to communities outside the top six counties.
Areas of opportunity
The Opportunity Atlas provides a new perspective on poverty and neighborhood conditions by offering
longitudinal information at a detailed neighborhood level. Unlike traditional measures that only show income
and variables at a specific point in time, the Opportunity Atlas allows us to track people over many years and
examine how their outcomes are influenced by family circumstances and where they grew up. The Atlas
reveals where the rich and poor currently live (per Census Bureau data), and shows whether children in a
specific area are more likely to grow up rich or poor. By focusing on mobility out of poverty across generations,
the Opportunity Atlas can provide policymakers, practitioners, and the public with a better understanding of
economic opportunity within their city and how each neighborhood affects a child's future success.
Identifying neighborhoods
Funding will be prioritized to organizations that demonstrate a clear plan to focus on priority populations and
impact target neighborhoods and using data from the Opportunity Atlas.
Priority of services
Service priority should be given to participants enrolled in existing programs, such as economic development,
legal assistance, violence prevention, or reentry programs, and who have experienced harm from the war on
drugs.
By focusing on individuals already engaged in existing programs, there is an opportunity to provide targeted
support to individuals who are actively seeking assistance and are already connected to resources. This
ensures that the funding is directed towards individuals who are invested in their own development and have
already taken steps towards positive change.
Second, prioritizing individuals who have experienced harm from the war on drugs acknowledges the historical
and ongoing impact of discriminatory drug policies on marginalized communities, particularly Black, Latino,
and Indigenous populations. These communities have disproportionately endured the most punitive measures
and systemic barriers resulting from the war on drugs. Prioritizing support for these individuals can begin to
address the resulting needs and disparities.
Target income brackets
CRP investments should prioritize individuals and businesses with financial needs to achieve long-term
economic benefits such as higher-paying jobs, increased personal wealth and financial stability. These
investments can pair with existing programs that assist people experiencing poverty to transition to economic
mobility services.
The Self-Sufficiency Wage measure describes how much income families of various sizes and compositions
need to make ends meet without public or private assistance. The following table shows the gap between
200% of the federal poverty level and the Self-Sufficiency Wage (SSW) can be up to $19,000 per year for
households in Pierce County. In the example below, a household of one or a household with one parent
working full time at minimum wage would not qualify for career pathways or economic mobility services. Given
the CRP's goals to reduce wealth gaps and produce long-term economic impacts, the HTFFSP recommends
that any programs with income considerations target people currently in the workforce, including self-
employed, who might be able to increase their income by increasing their skills or selecting a career pathway
to be at least above 200% of the Federal Poverty Level.
COMMUNITY REINVESTMENT PLAN REPORT 26
Table 4: Pierce County wage differences
Household size Minimum Area median ALICE Report Self- 80% Federal 200% Federal Difference
wage income Sufficiency Poverty Level Poverty Level between SS
(SS) Wage Wage and
200% Federal
Poverty Level
All households $72,300 $57,840
1 member Full-time $49,625 $31,152 $26,610 $39,700 $23,540 $3,070
at state
2 members $56,687 $50,388 $50,549 $45,350 $31,860 $18,689
minimum
3 members wage: $63,750 $59,612 $51,000 $40,180 $19,432
$32,739
4 members $70,812 $67,909 $56,650 $48,500 $19,409
5 members $76,500 $61,200 $56,820
Sources: AMI, ALICE, SS Wage, LI, Minimum Wage, and 200% of FPL.
Prioritizing families with children
To ensure everyone in Washington has full access to the opportunities, power, and resources they need to
flourish and achieve their full potential, HTFFSP recommends prioritizing families for funding opportunities.
Targeting families with children can have a significant long-term economic impact, as investing in children's
success can generate positive outcomes for future generations. Providing support to children experiencing
hardship can make an important difference in their lives now and in the long term.12 Research has consistently
shown that children who grow up in poverty or have adverse childhood experiences, such as parental
incarceration or exposure to violence, are more likely to present with negative outcomes as adults, such as
poor academic performance, behavioral problems, and decreased economic mobility.13 By providing resources
and support to families with children in communities most impacted by the war on drugs, we can help mitigate
these negative impacts and increase the likelihood of positive long-term outcomes. Additionally, investing in
children's success can lead to a reduction in intergenerational poverty, as children who receive the support
they need are more likely to achieve economic stability and success as adults. Therefore, targeting families
with children for resources and support can have a positive long-term economic impact, benefitting not only
the children but also future generations and society.
12 Bolstering Family Income Is Essential to Helping Children Emerge Successfully From the Current Crisis By Claire Zippel and Arloc
Sherman. Retrieved from https://www.cbpp.org/sites/default/files/2-23-21pov.pdf
13 Fast Facts: Preventing Adverse Childhood Experiences by the Centers for Disease Control. Retrieved from
https://www.cdc.gov/violenceprevention/aces/fastfact.html#:~:text=These%20experiences%20can%20increase%20the,such%20as%2
0cancer%2C%20diabetes%2C%20heart.
COMMUNITY REINVESTMENT PLAN REPORT 27
Funding distribution
Distribution by agency
With all funds distributed through Commerce, the CRP recommends funding to three state agencies:
The Employment Security Department will receive $25 million to provide workforce and small business
services.
The Office of Civil Legal Aid will receive $8 million to fund legal representation, vacating criminal records,
and legal financial obligation relief.
The Department of Commerce will directly distribute $167 million to support violence prevention, reentry
services, and economic development.
Each of these agencies will distribute the funds in accordance with the Community Reinvestment Plan,
prioritizing eligible organizations. Each agency will ensure monthly or quarterly reporting to a shared reporting
dashboard developed by Commerce to ensure transparency to and with the community. Funding will be
allocated to administrative costs to ensure an appropriate percentage (estimate 5-6%) is available to support
staff and contractors needed to successfully implement, coordinate and manage the recommended grant
programs.
COMMUNITY REINVESTMENT PLAN REPORT 28
Figure 4: Oversight roles organization chart
COMMUNITY REINVESTMENT PLAN REPORT 29
Responsible: Commerce is responsible for the distribution of funds from the Community Reinvestment
Account.
Accountable: The Office of Equity will support and partner in the implementation of the CRP. Community
partners are excited to have built a positive relationship with the Office of Equity and look forward to its
continued engagement. The Office of Equity will support Commerce in providing comprehensive, culturally
relevant and timely information and advice to the Community Advisory Board.
Consulted: A Community Advisory Board consisting of individuals with lived experience and representatives of
By and For organizations (or the appropriate local advisory team) and key stakeholders must be consulted
before specific policy decisions are made and be notified of progress and key performance outcomes.
New CRP Advisory Board: Lending, financial assistance, outreach
New Office of Civil Legal Aid Community Advisory Board: Record sealing, legal assistance
Office of Firearm Safety and Violence Prevention Advisory Committee: Violence prevention
Statewide Reentry Council: Reentry services
Local Workforce Board: Workforce development
Informed: Key stakeholders, policymakers and the general public need to be informed about the progress of a
project, the actions being taken with the funds, and key performance metrics. At a minimum, this should
include a publicly available dashboard managed by Commerce's Office of Firearm Safety and Violence
Prevention.
Priority considerations for organizations
The Legislature required the Community Reinvestment Plan to be developed in partnership with By and For
organizations. Fund distribution must prioritize nonprofit, faith-based, and grassroots organizations. The
Community Reinvestment Plan is designed to support the Black, Latino, and Indigenous communities
disproportionately impacted by structural racism, specifically those impacted by the racial, social and
economic disparities caused by the war on drugs.
In addition to other programmatic requirements to achieve the desired results, the following scoring criteria
will be included, as appropriate and practical, when selecting individuals and organizations for funding:
Evidence of partnership with By and For organizations in Washington
Endorsement of funding allocation from Washington By and For organizations or a body of those with lived
experience in Washington
Demonstrated ability to impact structural racism for the most impacted communities
Demonstrated ability to address the mental and spiritual impact of the war on drugs
Demonstrated ability to impact community harm
Evidence of strong organizational capacity
Prior experience in the area of focus
Potential impact of the proposed project
Alignment with the Community Reinvestment Plan
Demonstrated ability to produce long-term economic benefits
Clear plan for accountability measures
Clear plan for tracking
Clear plan to target populations disproportionately impacted by the war on drugs, including Black,
Indigenous and Latino communities
COMMUNITY REINVESTMENT PLAN REPORT 30
Sample request for proposal questions:
Can you provide evidence of your partnership with By and For organizations in Washington?
Have you received an endorsement from any By and For organizations in Washington?
How will your organization provide sustainable solutions to the communities most impacted by structural
racism, mental health impacts, and community harm? How does your organization consider these in your
program design?
How do you anticipate your proposed project will have a potential impact on the community?
How does your proposal align with the Community Reinvestment Plan?
Can you demonstrate the ability to produce long-term economic benefits such as new jobs, job retention,
increased personal wealth, and higher incomes?
What is your plan for accountability measures, and how do you intend to ensure that distribution and use of
funding meets intended purposes?
How will you track outcomes for the funds, and can you provide a clear plan for tracking?
Can you provide a clear plan to target Native American, Black, and Latino populations, and Opportunity
Atlas Neighborhoods, persons reentering/transitioning from jails and prisons, and families with children?
COMMUNITY REINVESTMENT PLAN REPORT 31
Estimating long-term economic benefits
The Community Reinvestment Plan (CRP) must demonstrate significant long-term economic benefits to the
state, a region, or a specific community within the state. Measuring this involves carefully assessing and
tracking the economic impact of various investments over time, including factors such as new job creation, job
retention, increased personal wealth, and higher incomes for individuals and families. The plan also addresses
wealth disparities to promote asset building, such as home ownership, and expanding access to financial
resources, including but not limited to grants and loans for small businesses and entrepreneurs, financial
literacy training, and other small business training and support activities.
The plan must provide clear evidence that investments will result in these long-term benefits and must
carefully consider how each investment will contribute to achieving its overall goals. Figure 5 shows the
estimated economic benefits of all CRP investments over a 10-year period, starting with the initial investment
date. The cumulative economic benefit is estimated to reach over one billion dollars over 10 years.
Figure 5: Estimated long-term economic benefits of all CRP investments
$1,800
$1,600
$1,400
$1,200
Millions of Dollars
$1,000
$800
$600
$400
$200
$0
0 2 4 6 8 10 12
Year
The Community Financial Development Institution (CDFI) investment macroeconomic prediction strategies14
and the money multiplier methodology are the basis for these calculations. Economic calculations were
conducted by the program, as each investment strategy will differ. These estimates are calculated on the
14 Seth Carpenter, Selva Demiralp, Money, reserves, and the transmission of monetary policy: Does the money multiplier exist?, Journal
of Macroeconomics, Volume 34, Issue 1, 2012,Pages 59-75, ISSN 0164-0704,
https://doi.org/10.1016/j.jmacro.2011.09.009.
COMMUNITY REINVESTMENT PLAN REPORT 32
conservative side. The benefits are calculated for individuals receiving investment and to businesses by
investment type. For details on methodology, please reference Appendix D.
Although not all of the recommended investments in the social service categories have firm estimates of long-
term economic benefit, we believe that there's a significant value to the communities these investments will
serve. A cost-benefit analysis would be necessary to project the economic impacts of the social service-
oriented programs. This was outside the scope of the CRP but would be helpful in evaluating the effectiveness
of the recommended programs. We encourage Washington State Institute for Public Policy as a partner in a
cost-benefit analysis endeavor.
Based on our engagement with community members in developing the CRP, the plan allocates more funds to
investment opportunities than to one-time services. Many of the investments listed in the plan should provide
substantial returns on investment throughout their two-year roll out and beyond as shown in Table 5.
COMMUNITY REINVESTMENT PLAN REPORT 33
Table 5: Community Reinvestment Plan recommendations and return on investment
Program name Investment size (in millions) Return on investment (in millions after
10 years)
Enabling Factors
Local Advisory Teams $8 N/A
Technical Assistance $4 N/A
Subsidized Lending
Loan Guarantee Fund $17 $87
Homeownership Capital Accelerator $15 $29
Black, Latino and Indigenous-Led Lending $15 $45
Support Agency
Financial Assistance
Blended Capital Enhancements $25 $39
Individual Development Accounts $25 $816
Cannabis Business Grants $3 $8
Outreach and Support
Asset Building Initiatives $3 N/A
Financial Coaching and Mentorship $10 $20 (2 year growth
Workforce Development
EcSA Career Accelerator Incentives $10 $24 (2 year growth)
EcSA Business Support $15 N/A
Civil and Criminal Legal Assistance
Vacating Criminal Records and Legal $2 $70
Financial Obligation (LFO) Relief
Legal Representation $6 N/A
Community-Based Violence Prevention
Violence Reduction $5 N/A
Community Healer $10 N/A
Youth Sports Capacity Building $10 N/A
Barber/Beauty Shop Health Navigation $5 N/A
Reentry Services
Expand Reentry Program $12 N/A
Total $200 $1,138
COMMUNITY REINVESTMENT PLAN REPORT 34
Monitoring and evaluation
Key performance indicators
These key performance indicators (KPIs) are options for program managers to use for evaluating their
respective programs. Program managers, as subject matter experts, should be empowered to use these KPIs
as a starting point, re-working them to fit the needs of the program. KPIs for each program should be
determined near the beginning of the program launch, with common KPIs across contracts and recipients to
determine the effectiveness of the body of programs as a whole. Agencies and organizations who receive
Community Reinvestment funding should also implement some mechanism to receive community feedback to
improve program effectiveness and impact.
This project is only funded for two years, and these KPIs will be part of the narrative in determining whether
policymakers support future funding. The success and effectiveness of the programs will be determined by the
geographic and demographic impact of the distribution of the funds to organizations to support individuals
and families harmed by the war on drugs.
Table 6: Sample KPI recommendations by area
Economic development Reentry services Legal assistance Violence prevention
New living wage jobs Post-conviction relief
Job retention Case assistance
Successful transitions Violence intervention
Increase personal wealth LFO relief and vacation of
Higher incomes criminal records
Enabling conditions
Number of partnerships with By and For organizations
Number of individuals and organizations receiving technical assistance
Percentage of funding distributed to By and For organizations
Frequency of Commerce, Office of Equity, and community advisory board reviews of progress
Percentage of funding distributed to By and For, nonprofit, faith-based, and grassroots organizations
Economic development
Subsidized lending
Number of loans originated
Total dollar amount of loans
Total dollar amount leveraged
Number of individuals receiving funding
Financial assistance
Number of accounts established
Number of assets purchased
Amount spent on eligible participants
Workforce development
Number of connections with businesses
COMMUNITY REINVESTMENT PLAN REPORT 35
Number of placements in subsidized on-the-job training
Number of paid work experiences
Number of unsubsidized employment placements
Number of unsubsidized employment positions retained after six months
Average wage of hires
Amount spent on the job training, work experiences, equipment purchases, and subsidized wages
Number of new jobs created
Number of jobs retained
Number of training completed
Number of job placements
Number of self-sufficient wage jobs
Race/ethnic breakdown of the workforce, specifically retention and promotion
Outreach and support
Number of homes purchased with grant and loan funding
Number of participants completing financial literacy training and support
Number of participants completing small business training and support
Support service programs
Civil and criminal legal assistance
Number of criminal records vacated
Amount of LFO relief
Number of cases assisted
Reentry services
Number of successful transitions from incarceration
Percentage of participants in educational or vocational programs
Percentage of participants that obtain employment
Violence intervention/prevention
Number of outreach workers training
Hours of training
Number of participants in community-based violence prevention services
Number of violent incidents deescalated
Number of individuals referred to support services
Number of individuals reached by violence prevention programs
These indicators cover different aspects of the CRP, including community engagement and equity, economic
development, legal assistance, violence prevention, reentry services, program evaluation, and economic
benefits and prioritization. They provide a comprehensive picture of the outcomes and impacts of the grant
program, and can be used to track progress, identify challenges, and make necessary adjustments to achieve
program goals and objectives.
COMMUNITY REINVESTMENT PLAN REPORT 36
Appendix A: Recommendation details
Area 1: Enabling factors
Local Advisory Teams
Program Name: Investment: Goal:
Local Advisory Teams $8 million Local guidance
The Local Advisory Teams will be contracted entities that have an existing community leadership and organizing
role, consisting of individuals with lived experience and representatives of By and For organizations. The budget
for these entities will support the grantees of CRP funds through technical assistance, local community
engagement and communications, and other implementation supports. These teams can help develop strategic
communication plans that ensure efforts are well-coordinated, clearly understood, and reach the intended
audience(s) effectively. By doing so, we can maximize the program's impact and success.
They must also be provided access to track progress and key performance outcomes, and be consulted before
specific policy decisions are made. These groups are an outgrowth of the understanding that BIPOC
communities have By and For organizations and networks, which provide the very services we hope to support
and fund. The development of this system of co-creation will be a part of the initial work of the CRP as it delivers
on funding tiers 2 and 3.
The Local Advisory Team is responsible for their budget to support local implementation and to help distribute
the technical assistance.
The Local Advisory Team program is a key initiative to ensure the effective administration of the community
reinvestment fund in several target areas. The program will involve establishing a council in each region
responsible for oversight, grant program review, and fund activities coordination. These local councils will
consist of representatives from various community organizations and stakeholders, and be staffed entirely by
communities disproportionately harmed by the war on drugs. Being led by the communities harmed is a
recurring theme across multiple existing reports. For example, the Poverty Reduction Work Group (PRWG)
proposed investing state resources to increase ownership capacity in communities most affected by poverty.
Our community advisors highlighted how each area has unique needs and strengths, so the local focus is
important.
To ensure the effective implementation of these programs, the contracted group will also oversee staff
support and compensation for community members15 to lead the program. This will not only provide
opportunities for community members to take an active role in their own community; it will also ensure that
programs are developed and delivered in a culturally-specific manner that reflects the needs and strengths of
the community. By involving community members in the program's implementation, the Local Advisory Team
program will increase community engagement and promote long-term economic success in the target areas.
The funding available must be large enough to allow for participatory budgeting and other community-based
processes. Similar to the efforts of the Lavender Rights Project — a Black- and trans-led organization centered
on the civil and legal needs of Black trans people — participatory budgeting can be a helpful way for teams to
make decisions on where funds should go as plans are being built out. Up to 10% of the Local Advisory Team
funding is expected to go towards administrative costs (such as meeting refreshments, meeting space, paying
15 Community Compensation Guidelines | Office of Equity (wa.gov)
COMMUNITY REINVESTMENT PLAN REPORT 37
participants) for each of the regions. Each Local Advisory Team should be able to set its own budget, based on
its needs.
Technical Assistance
Goal:
Program name: Investment:
Economic benefit
Technical Assistance $4 million
The Technical Assistance and capacity building program provides subsidized subject matter experts who can
support organizations and community members to seek funding and deliver social services. The program
includes grant writing support, program guidance, infrastructure development, training, and maintaining quality
standards. It also emphasizes professional development, a shared reporting system, resource development, and
advocacy efforts. Overall, the program aims to empower communities, address disparities, and foster economic
resilience.
Communities spoke about helping senior professionals leverage their understanding of cultural contexts to lead
the design and implementation of economic resilience via technical assistance and capacity building for
underfunded communities.
There was a strong recognition of the importance of subsidized assistance to support the communities that
will receive CRP funds. Communities spoke about helping senior professionals leverage their understanding of
cultural contexts to lead the design and implementation of economic resilience via technical assistance and
capacity building for underfunded communities.
This includes training and certification exams for technical assistance and capacity building for underfunded
communities with a specific emphasis on the cultural needs and strengths of Black, Indigenous, and Latino
communities. Communities need recurring review and consistent updates of materials and resources to
ensure that services continue to equip senior professionals with the relevant skills they need to address the
specific cultural needs of underfunded communities.
Accountability measures
As indicated by the Legislature, the Office of Equity will play a critical role in supporting partnerships with By
and For organizations and supporting the integration across agencies to meet the state's goals for CRP
resources. To achieve this, the Office of Equity, the Community Advisory Board, and the Department of
Commerce will have the following roles and responsibilities:
Community partnerships role
Community voice: The Statewide Community Advisory Board (CAB) of the CRP plays a crucial role in ensuring
ongoing community involvement in the planning, improvement, and evaluation of services throughout the
project. Consisting of representatives from all 12 regions, with a particular emphasis on individuals with lived
experience, the CAB serves as a conduit between the community and the CRP.
The primary responsibility of the CAB is to keep the community well-informed about CRP policies, programs,
and assessments. They actively review reports concerning implementation, progress, and outcomes to ensure
the use of equitable and culturally responsive practices. Moreover, the CAB actively monitors the allocation of
funds to align with the community's priorities and needs. They also serve as advisors to program managers
and facilitate communication between various stakeholders. It may be possible for them to co-create with
Local Advisory Teams on implementation plans and contracting processes.
COMMUNITY REINVESTMENT PLAN REPORT 38
In addition to its internal responsibilities, the CAB acts as a powerful advocate for the community. They
represent the community's interests and priorities to external stakeholders, ensuring that their needs are
accurately represented. They will ensure that the community's vision is taken into account.
The CAB will enhance community engagement and accountability, aiming to create a better future for all
community members. To achieve this, the CAB project implementation across programs ensures that the
investments align with community needs and objectives.
Local Support: Local Advisory Teams review reports related to implementation, progress, and results for their
specific geographic area. Each local advisory team will be made up of at least five community members. In
addition, these groups will review and recommend funding to support the implementation of programs from
their area's allocation of local advisory team and technical assistance budget for each region.
Department of Commerce's role
Track outcomes: Commerce will track the outcomes of the funded programs and initiatives. This will include
reviewing data on key performance indicators and reporting on progress toward achieving desired outcomes
to the community advisory board.
Shared dashboard: Commerce will create a shared dashboard using a tool like Smartsheet that will provide
transparency and accountability in the distribution and use of funding. This dashboard will be accessible to all
stakeholders, including eligible communities and programs, and will provide information on funding
allocations, outcomes, and progress toward achieving program goals.
Office of Equity role
Monitor dashboard: The Office of Equity will monitor the shared dashboard of key performance indicators to
ensure that investments are meeting their goals and objectives.
Oversight accountability: The Office of Equity will oversee the accountability measures put in place to ensure
that the distribution and use of funding meet intended purposes in partnership with the Office of Financial
Management. This will involve reviewing alignment with program goals and consistency with the guidance in
the Community Reinvestment Plan.
The Office of Equity, in partnership with the Community Advisory Board, will review CRP outcomes on a regular
timeline. This will ensure that programs are regularly reviewed and evaluated to ensure that they are meeting
their goals and objectives. Additionally, the Office of Equity will ensure that the criteria for eligible communities
and programs, which will be based on an equity lens focused on individuals and communities harmed by the
war on drugs.
The accountability measures ensure that the distribution and use of funding meets intended purposes will be a
key priority for the Office of Equity. This will involve understanding guidelines and expectations for program
implementation and monitoring compliance with program requirements. The Office of Equity will track
outcomes for the funds, including the key performance indicators, to assess progress toward achieving
desired outcomes. The Office of Equity will report the findings annually to the governor and legislature in its
annual report due October 31st.
By and For organizations
The authorizing legislation directs that the CRP be developed in partnership with "by and for community
organizations," which it was. The Legislature further directed that within the CRP, "Nonprofit, faith-based, and
grassroots organizations are prioritized for funding." The Office of Equity and Department of Commerce play a
COMMUNITY REINVESTMENT PLAN REPORT 39
crucial role in supporting partnerships with By and For organizations and facilitating integration across
agencies.
This report uses a definition of "By and For organizations" developed by the nonprofit 501 Commons. A By and
For organization is part of a community of people that see themselves as unique and defined by the members’
identities, traditions, and values. A By and For organization is one where leadership and staff belong to the
same community they serve, promote, and work to preserve. By and For organizations build trust, advocate,
respond, and solve problems specific to community members. By and For organizations have roots in their
respective communities as change agents and providers of mitigating systems of community service. They
invest in and work with community members to improve their quality of life.
These organizations are operated by and for the communities they serve, with a primary mission of catering to
specific communities and being culturally based. They are directed and controlled by individuals from the
targeted population, embodying the community's central cultural values. The rationale behind engaging with
these organizations lies in promoting inclusivity, representation, and community empowerment. Government
agencies are encouraged to provide evidence of partnerships and endorsements from By and For
organizations to ensure authentic community involvement and better address the diverse needs of
marginalized communities. Given the disparities caused by the war on drugs, specific attention should be
prioritized for Black, Indigenous and Latino By and For organizations.
Black, Indigenous and Latino By and For organizations can participate in the implementation of the CRP by
applying for funding directly or partnering with other organizations that are applying.
Cultural competencies
To provide equitable service delivery, participating agencies must ensure that core program staff possess the
following cultural competencies:
To the greatest extent possible, agency staff administering, implementing and managing the programs
should have lived experience specifically related to the war on drugs and the generational impacts on the
specific and targeted communities.
Demonstrated ability to communicate and effectively interact with people across cultures, ranges of ability,
genders, ethnicities, and races.
Demonstrated knowledge of the history of discrimination in America, particularly as it relates to race and
racism, and how this history has led to disparities experienced by marginalized communities such as Black,
Indigenous, Latino, people with disabilities, LGBTQ+ communities, and others.
Demonstrated ability to successfully deliver culturally responsive services.
By integrating these crucial competencies, agencies reinforce and support the legislative intent while
underscoring their significance in the work at hand. With the anticipation of eight to 12 project positions
funded through CRP funding, agencies should proactively consider incorporating minimum cultural
competency standards into job descriptions across all levels. This will involve:
Attracting a more diverse talent pool by highlighting cultural competency in job listings.
Proactively disseminate job listings to Black, Latino and Indigenous By and For organizations to share with
their networks.
Prioritizing cultural humility qualifications into account during the interview selection process.
Prioritizing cultural competency and an equity lens as a factor in interview scores and final selection
decisions.
Establishing cultural competency expectations in performance evaluations.
COMMUNITY REINVESTMENT PLAN REPORT 40
It is important to recognize that cultural competence encompasses more than acknowledging cultural
differences. It encompasses the ability to comprehend, communicate with, and effectively engage with
individuals from diverse cultures.
Outreach principles
To successfully implement the Community Reinvestment Plan in collaboration with By and For organizations, it
is essential to prioritize Black, Indigenous, and Latino communities as the focal point of the solutions within
each program area. However, to identify and eradicate the root causes that sustain racial inequity and foster
equal opportunities for everyone, it is crucial to transition from inconsistent and sporadic engagement to
systemic and sustained approaches.
• Involve people disproportionately impacted by racism and systems of oppression in early strategy
conversations and planning as an advisory group and review local data and assessments.
• Target and create partnerships with organizations predominantly led by Black, Latino or Indigenous
people to find opportunities to build capacity and support local strategies for safety and achievement.
• Build a culture of evidence that promotes communities of color as the experts of their own experience
and who have the right to research, the right to know, and the right to be heard as a crucial part of
transformative change.
• Conduct specific outreach to the immigrant and refugee community and limited English-speaking
residents to understand and track their unique safety needs and ensure language barriers are
addressed.
• Participate in the social initiatives predominantly led by people of color to find opportunities to invest in
training, resources, and partnerships that advance their strategies and ideas.
• Convene groups of primary and key stakeholders who may have an interest in supporting essential
safety needs, health, and positive well-being of people of color.
• Use the Government Alliance on Race and Equity (GARE) communication guide to pitch stories that
affirm, counter, transform, and highlight local stories of initiatives led by people of color and
acknowledge progress and achievement.
• Any consultants/vendors must possess the experience and skills to work with diverse populations,
particularly the Black community.
• Serve as a coordinated and networked hub of information about policies to advance equity work within
the region in partnership with other organizations.
By adhering to these principles, state agencies can enhance their outreach and engagement efforts, foster
equity, and work towards sustainable solutions for social issues.
Area 2: Economic development
Economic development includes addressing wealth disparities to promote asset building, such as home
ownership and expanding access to financial resources, such as grants and loans for small businesses and
entrepreneurs, financial literacy training, and other small business training and support activities.
The Community Reinvestment Plan recommendations for economic development are built on four strategic
sets of investments:
Subsidized Lending
Financial Assistance
Outreach and Support
Workforce Development
COMMUNITY REINVESTMENT PLAN REPORT 41
The plan prioritizes recent asset-building and economic development activities of the Department of
Commerce. An example of this includes Commerce’s recent work around matched savings accounts (IDAs),
CDFI support programs, and entrepreneurship programming; and how these programs, with feedback from
community researchers, could weave into a final recommendation. HTFFSP relied on outcomes and data
available from the Department of Commerce when considering current investments and success rates as well
as how success can be defined for this project. HTFFSP spoke with program intermediaries and end users to
assess who benefits from these programs currently, and where barriers to entry exist. Together, HTFFSP
comprehensively framed what access looks like before and after reentry, and the barriers for family members
and people in communities. This work highlighted the areas needed for reinvestment to successfully navigate
the runway leading to participation as well as challenges to successful completion. These areas included
childcare needs, health care access, benefits cliffs, income and time constraints, financial volatility,
transportation costs, disability needs, and more.
HTFFSP considered data reflecting racialized gaps in median household income, asset ownership, savings,
home ownership rates (necessary for leveraging a mortgage to start a business), and access to capital through
mainstream lending or CDFI programs. After careful consideration, HTFFSP demonstrated that multiple
opportunities exist to address barriers to entry with a portion of reinvestment funds. HTFFSP underscored the
need for robust access to capital to start a potentially viable business. Community feedback from members of
the Poverty Reduction Taskforce, Black Collective, Black Home Ownership Initiative, and other groups
articulated that such access must be a priority, and that investments are leveraged with attention to enabling
conditions and streamlined service delivery (also called "effort overlap") hold promise for long-term economic
benefits. This is the most common pathway for interventions to receive a recommendation for this report.
HTFFSP applied the same approach to other entrepreneurship programs offered by the Department of
Commerce, as well as Commerce's homeownership programs and asset building programs and other state
programs. Thanks to the efforts of the project outreach team, several examples of promising practices across
the nation were considered and incorporated into the design of this plan and in the conversations with
community members across Washington.
Subsidized Lending
Increasing access to capital to obtain assets
The Community Reinvestment Plan, as directed by Legislature, encompasses a range of measures aimed at
expanding grants and loans to small businesses and entrepreneurs. This comprehensive approach integrates
financial coaching and small business training and support activities to provide holistic support.
“A lack of access to affordable capital in low-income communities and communities of color, paired with a
history of bank and mortgage redlining, has led to an extreme racial wealth gap. As these disparities in
wealth and income have continued, households of color are less likely to have the safety net of home
equity or cash on hand to handle unexpected expenses or a loss or reduction of income. As a result,
communities of color are targeted by abusive and predatory lenders, putting households of color at great
risk of debt, a significant barrier to escaping poverty.” — Ten-Year Plan to Dismantle Poverty
Recommendation: In the Ten-Year Plan to Dismantle Poverty, The Poverty Reduction Workgroup recommended
expanding access to no- or low-cost financial resources and education that empower, rather than prey upon,
people experiencing poverty. In addition, they recommended subsidizing financial institutions that lower the
COMMUNITY REINVESTMENT PLAN REPORT 42
cost of banking, lending, and moving money for people with low-incomes.16 After months of interviews with
community members and representatives from the financial sector, HTFFSP developed three programs to
subsidize lending using a best-practice approach that integrates financial coaching with access to financial
products to increase households in obtaining assets.
Allocations:
Loan Guarantee Fund: $17 million
Black, Latino, Indigenous-Led Lending Agency Support: $15 million
Homeownership Capital Accelerator: $15 million
Community oversight: The Community Advisory Board, consisting of individuals with lived experience and
representatives of By and For organizations, must be provided access to track progress and key performance
outcomes, and be consulted before specific policy decisions are made.
Key performance indicators
The Loan Guarantee Fund intermediary should monitor and maintain lender loan guarantee usage according to
the following breakdown:
Number of homes purchased with grant and loan funding
Number of small businesses and entrepreneurs receiving grant and loan funding
Number of participants completing financial coaching training
Number of participants in small business training and support programs
Number of new jobs created
Number of jobs retained
Amount of increased personal wealth generated
Percentage increase in incomes for individuals, families or a particular community
16 Final10yearPlan.pdf. (n.d.). Retrieved March 8, 2023, from https://dismantlepovertyinwa.com/wp-
content/uploads/2020/12/Final10yearPlan.pdf
COMMUNITY REINVESTMENT PLAN REPORT 43
Loan Guarantee Fund
Program name: Investment: Economic benefit goal:
Loan Guarantee Fund $17 million $87 million (10 years)
The Loan Guarantee Fund is a pool of resources that provides funding and loan loss reserve to lenders across
the state, including Community Development Financial Institutions (CDFIs), local municipalities, and non-profit
organizations in Washington. These lenders are able to leverage the pool for up to 10 times the fund amount (for
example, $15 million can leverage $150 million in funding). These organizations offer financing and financial
services to underserved communities that traditional banks often overlook. A loan guarantee fund is a fund set
up to insure the lender against default on the part of the borrower. This means that if the borrower fails to repay
the loan, the guarantor (the entity managing the loan guarantee fund) will repay the loan to the lender on the
borrower's behalf. Loan guarantee funds are often used to encourage lending to small businesses, startups,
individuals and other entities that might be traditionally considered “high-risk” borrowers. By guaranteeing the
loan, the fund reduces the risk to the lender, making them more likely to issue the loan in the first place.
The initial fund is $17 million, and a single entity will oversee the fund, which community-based lenders can apply
to access. Approval is based on lending history, underwriting processes, track record of serving or commitment
to serve the intended beneficiaries, and report loan volume, loan averages, and assist the intermediary in tracking
committed guarantees from the fund until it's 100% committed. Impact investors and donors can contribute to
the fund.
Eligible lenders must employ or work with by-and-for agencies employing Financial Technical Assistance
providers who are supporting participants on an asset pathway to be approved with favorable terms. Individuals
can participate in the program by being endorsed by a financial or business coach.
Economic benefit goal
The investment in CDFIs has a multiplier effect on liquidity, although engagement from the financial sector and
historic distrust of banks among communities of color may reduce the multiplier. A conservative estimate of
three times the initial investment is used, assuming some funds for administrative costs. Dollars allocated for
loans are split over the first two years, and subsequent economic benefit comes from housing equity growth
and modest start-up profits, with housing prices projected to increase at a 7% rate.
Program details
To implement the Loan Guarantee Fund, an intermediary will be responsible for holding the fund while ensuring
that approved lenders have a successful record of directing funds into the intended communities. Lenders will
have to apply and be approved based on their compliance with criteria, their track record in providing loans to
specific populations and geographic areas, their provision of technical assistance, and recommendations from
the community. Once approved, lenders can access the fund and leverage the risk pool.
The Loan Guarantee Fund should maintain the following investment breakdown:
$5 million for new construction loans
$5 million for no collateral loans for business startups and scale-up
$6 million for loans for home construction expansions, DADUs, or additions
$1 million for consumer loans (such as refinancing predatory loans, auto refinancing, purchases,
emergency)
Lenders will have to apply and be approved based on their compliance with CRF reinvestment criteria, their
track record in providing loans to specific populations and geographic areas, their provision of technical
assistance, and recommendations from the community. Once approved, lenders can access the fund and
COMMUNITY REINVESTMENT PLAN REPORT 44
leverage the risk pool. However, they will be required to report monthly to the intermediary on the number of
loans provided, their size, the amount leveraged from the risk pool, grants and matched savings used, and how
the borrower meets CRF criteria.
The intermediary should have a solid understanding of lending and be able to provide technical assistance to
lenders to ensure they make important loans. During the pre-approval process, the intermediary will work with
Commerce to ensure that they explain exactly what they plan to do, including:
Identify expected demand
Plan for new lending practices under this funding
Identify possible barriers in the process of lending
Identify how the pool will make their loans more acceptable than current standards
Identify expected volume of loans over two years
The intermediary must be equipped to interface with lenders committed to place-based investments in
communities that typically lack access to capital. The intermediary will track loan activity for two years of
lending activity unless otherwise specified by Commerce and subject to change by the Legislature. All $17
million for the risk pool must be leveraged and allocated as a loan guarantee within this two-year period, and
information must be gathered on:
Number of loans originated
Total amount of loans
Average loan amount by loan type
Total amount leveraged
Race and ethnicity of borrower
Geographic location of borrowers and asset
New construction financing
The Loan Guarantee Fund includes a risk pool of $5 million specifically designated for new construction. The
Construction Loan Financing risk pool within the Community Reinvestment Fund (CRF) aims to address the
identified need for construction financing in the homeownership sector. After extensive consultation with
stakeholders, including employees in the Housing Division at the Department of Commerce, Community
Development Financial Institutions (CDFIs) in Western Washington, and the Black Home Initiative, it was
determined that there is a crucial need for funding construction projects to facilitate affordable
homeownership opportunities.
To address this need, $5 million of the risk pool within the CRF was allocated for construction loans. The
establishment of a loan guarantee risk pool enables CDFI lenders to offer construction loans, serving as a
catalyst to incentivize lending for construction projects. This financing not only supports the construction of
affordable homes; it also aligns with programs funded through Chapter 240, Laws of 2023, which established
a covenant homeownership account and program. The program aims to provide down payment and closing-
cost assistance to "first-time homebuyers affected by the state's discriminatory housing policies."
By providing construction loan financing, the program enhances the availability of affordable housing options
and helps address historical disparities in homeownership. CDFIs and other similar lenders that have expertise
in community development and commitment to equitable lending will play a pivotal role in ensuring that
underserved communities have access to safe and affordable housing. The loan guarantee risk pool
established by the CRF mitigates the risk associated with construction financing, making it more feasible for
lenders to provide these loans and support the development of affordable housing projects.
COMMUNITY REINVESTMENT PLAN REPORT 45
The Construction Loan Financing risk pool within the Capital Accelerator Program aligns with the broader
mission of promoting equitable access to homeownership and addressing historical housing inequities.
Through strategic collaboration and targeted funding, the program contributes to the realization of affordable
homeownership opportunities, empowering individuals and families to achieve stability, wealth building, and
improved quality of life. By investing in construction loans, the program fosters the growth of inclusive and
sustainable communities, advancing the goals of housing affordability, equity, and social progress.
Home construction expansions, Detached Accessory Dwelling Units (DADUs), or additions
The Homeownership Capital Accelerator Fund includes a risk pool of $6 million specifically designated for
home construction expansions, DADUs, or additions. The housing crisis in Washington is a pressing and
intricate problem that requires immediate attention. Addressing the housing crisis necessitates a multifaceted
approach. A range of tactics exists for developing short-term, medium-term, and long-term solutions, such as
implementing homeownership strategies that ensure affordability in perpetuity. Our aim was not to devise
solutions that replicate state or federal funding programs for low-income households since there is already a
considerable amount of funding available for homeownership, including Chapter 240, Laws of 2023, which will
provide millions of dollars in additional funding. Rather, we aim to assist low- to middle-income earners in
creating long-term financial security and to improve or expand existing homes, provide additional housing
units, or generate additional income.
Through this program, lenders can leverage $5 million to $6 million to secure up to $60 million of loans. When
combined with grants and Individual Development Accounts, this funding enables 1,000 homeowners to
access a comprehensive financial package to add equity to their homes. For example, a homeowner can
benefit from a $50,000 loan for an addition while enhancing their ability to complete their asset acquisition
journey by receiving a $30,000 grant, and an additional $20,000 through the IDA program. This collective
support of $100,000 empowers homeowners to invest in important initiatives such as constructing a DADU,
expanding their existing home, or making valuable additions.
Case studies: DADU/ADU
DADU/ADU home additions and similar home expansion strategies can provide several benefits to the
community, as they can provide additional affordable housing options and increase homeownership rates.
These small units, separate living spaces built on the same lot as a primary residence, can be rented out at a
lower cost than traditional homes, making them more affordable for low- and moderate-income families and
providing them with a more stable housing option.
In 2020, Santa Cruz, California, launched a pilot ADU grant program to encourage the construction of new
ADUs and the conversion of existing structures. The program offered grants of up to $40,000 to eligible
homeowners who were interested in constructing or converting an ADU on their property. The program was
successful, with more than 50 homeowners applying for the grant and 20 receiving funding to construct or
convert ADUs on their property.17
Portland, Oregon, has actively promoted ADU construction since 2010. In 2018, the city launched a new pilot
program aimed at promoting ADU construction, specifically in low-income neighborhoods. The program
offered grants of up to $10,000 to eligible homeowners who wanted to construct an ADU on their property.
17 ADU Grant Program | CalHFA. (n.d.). Retrieved April 8, 2023, from https://www.calhfa.ca.gov/adu/
COMMUNITY REINVESTMENT PLAN REPORT 46
This program was successful, with 25 homeowners receiving funding and constructing ADUs in low-income
neighborhoods.18
In 2019, Denver launched a new program to promote the construction of ADUs in the city. The program offered
matching grants of up to $25,000 to eligible homeowners interested in constructing an ADU on their property.
The program was successful, with over 200 homeowners applying for the grant and 22 homeowners receiving
funding to construct ADUs on their properties.
All three of these programs successfully encouraged the construction of ADUs and expanded affordable
housing options in their respective communities. By offering financial incentives to homeowners, these
programs were able to overcome some of the financial barriers associated with ADU construction and
encourage more homeowners to invest in ADUs. The success of these programs demonstrates the potential of
grant programs to expand affordable housing options and promote community development. There may be a
need to support a DADU guidance team to provide technical assistance as part of this solution. This team of
DADU experts would help municipalities and homeowners navigate the Multi-Family Property Tax Exemption –
which would need to be adopted city-by-city. It is authorized at the state level – jurisdictions can help
homeowners become property developers with this kind of support.
To assist the DADU ecosystem, the CRF should allocate funds to a consulting team that can offer expertise in
various areas. These may include prefab, financing, pre-authorization, property tax exemption, income tax
benefits, and pre-approved plan sets. With this support, the DADU ecosystem can thrive, and property owners
will have access to a range of benefits that will encourage the creation of these valuable living spaces. By
providing this assistance, the CRF can help ensure that DADUs are an affordable and accessible housing
option for a wide range of individuals and families.
Business start-ups and scale-ups
The Capital Accelerator Fund includes a risk pool of $5 million specifically designated for Business Start-Ups
and Scale-Ups. The Minority Business Development Agency produced a detailed report on the contracting
barriers and the lessons learned from existing disparities studies in the Western United States.19 Black and
brown-owned businesses struggle with access to capital due to discriminatory practices in lending, credit
access, and lower net worth among minority business owners. Financial institutions restrict debt capital
available to minority-owned businesses and engage in redlining minority areas while discriminating in
commercial and residential mortgage application approvals. In addition, suppliers offer complicated credit
terms and higher prices to minority-owned businesses, and some unions restrict the number of training and job
slots available to minorities and women.
“For the descendants of enslaved Africans in the United States, entrepreneurship represents more than
just owning a business and pursuing the proverbial American Dream. Instead, the ability for Black people
to participate in local, regional, and global markets represents a dream deferred by systemic racism and
discrimination.” — Tynesia Boyea-Robinson, President and CEO of CapEQ
Financing is difficult for smaller companies with fewer assets and new companies with less history. Small
business owners indicated that access to financing was generally a barrier, particularly in the startup and the
18 Portland’s backyard ADU program quietly launches. (n.d.). Retrieved April 8, 2023, from https://www.koin.com/news/portlands-
backyard-adu-program-quietly-launches/
19 Minority Business Development Agency (2016). “Contracting Barriers and Factors Affecting Minority Business Enterprises - A Review
of Existing Disparity Studies”. Retrieved from https://www.mbda.gov/contracting-barriers-and-factors-affecting-minority-business-
enterprises-review-existing-disparity
COMMUNITY REINVESTMENT PLAN REPORT 47
initial growth phases. This is not just an issue in Washington. For example, interviewees in a 2007 California
Department of Transportation study reported that financing was difficult (BBC Research & Consulting, 2007),
while in a study of Cleveland, Ohio, a sizable number of entrepreneurs used personal resources to finance their
businesses, including second mortgages and credit cards (NERA Economic Consulting, 2012). We have heard
similar details from speaking to Washington business owners for the Community Reinvestment Plan. These
factors illustrate the challenges socially and economically disadvantaged businesses face in obtaining access
to capital.
Businesses’ financing needs change as they start, grow, and scale. Bringing on employees is one of the best
ways for small businesses to scale, yet few are given the robust capital needed to have the security to make
those hires. For the communities harmed by the war on drugs, this creates issues for job-seekers and potential
employers. Many communities harmed by the war on drugs seek to hire people who have lived experience
because they have unique skills or understand their customer base well enough to increase their profitability.
Funding opportunities that would allow small businesses to have staff who reflect the goals of the Community
Reinvestment Fund would be helpful. The HTFFSP advisors discovered numerous instances of lenders
nationwide offering non-collateral loans to support start-ups and scale-ups. These lenders effectively combine
robust technical assistance with loan guarantee funds. Baltimore Community Lending and Vermont
Community Loan Fund serve as commendable examples of such initiatives. Additionally, Seattle has Denkyem,
an emerging Community Development Financial Institution (CDFI) that provides non-collateral loans for scaling
up ventures. Community members said that access to substantial non-collateral loans, enabling the hiring of
staff, would be transformative. They emphasized how such loans would help overcome the mindset barriers
stemming from the pervasive impact of structural racism and poverty, allowing individuals to escape survival
mode.
Community members articulated how helpful it would be to work with a lender to review their business plan.
They wanted the lender’s perspective shared with them in a non-judgmental and collaborative way. They spoke
about how the shame and stigma of poverty and being convicted for a drug offense is embarrassing and/or
shameful, as well as a known barrier. They talked about how, too often, they are forced to share their stories
and experiences with people who do not understand their realities. If they had an understanding lender, they
said it would allow them to build a positive relationship with funding entities.
Consumer loans
The Capital Accelerator Fund includes a risk pool of $1 million specifically designated for consumer loans.
This portion of the fund is intended to support individuals seeking financing for various purposes such as
credit consolidation, auto refinancing, purchases, or emergency expenses. CDFIs and non-profit organizations
in Washington can access this pool of resources to offer consumer loans to underserved communities.
Individuals burdened by high-interest credit card debt or other financial difficulties can benefit from this
program. By approaching a participating lender, they can explore consumer loan options to address their
specific needs. With the support of the risk pool established by the Capital Accelerator Fund, lenders can offer
favorable consumer loan terms, such as lower interest rates and manageable repayment plans.
By accessing the loan proceeds, individuals can consolidate their debt, gain financial stability, and regain
control of their finances. This includes benefiting from more affordable monthly payments and reduced
interest, which alleviate financial stress and enable the allocation of resources towards other essential
expenses and long-term financial goals.
The availability of the risk pool within the Capital Accelerator Fund ensures that CDFIs, non-profit
organizations, and other lenders in Washington have the necessary resources to assist individuals in similar
COMMUNITY REINVESTMENT PLAN REPORT 48
circumstances. The program supports underserved communities by providing access to consumer loans that
address a range of financial challenges. These challenges may include consolidating debt, refinancing auto
loans, making essential purchases, or addressing unexpected emergencies.
The collaboration between the Capital Accelerator Fund, participating CDFIs, non-profit organizations, and
other lenders is essential in providing affordable and suitable financing options tailored to the specific needs
of individuals. This approach fosters financial inclusion and economic empowerment within underserved
communities, enabling individuals to improve their financial well-being and work towards a more secure future.
By alleviating financial burdens and promoting responsible financial management, the program contributes to
the overall economic resilience and stability of the community.
Black, Latino and Indigenous-Led Lending Agency Support
Program name:
Investment: Economic Benefit Goal:
Black, Latino and Indigenous-Led Lending Agency
$15 million $45 million over 10 years
Support
The Black, Latino and Indigenous-Led Lending Agency Support Program aims to support existing and emerging
Black, Latino and Indigenous-Led lenders who are or are not currently Community Development Financial
Institutions (CDFIs), by providing grants for lending capital as well as capital for operations and salaries. This
program recognizes the importance of providing robust investment to CDFIs, as they often operate with limited
resources and staff. By enhancing their capacity, these groups can serve a greater number of individuals and
intended communities, access the risk pool, and gain access to additional training opportunities to effectively
address racial wealth gaps.
Economic benefit goal
Assuming a multiplier effect of three times the initial investment, the $15 million investment is estimated to
reach $45 million by year two, contributing to economic growth.
Program details
Access to mainstream lending for home ownership, entrepreneurship, vehicle purchases, and other consumer
needs plays a crucial role in the strength and prosperity of local communities. Unfortunately, many Black,
Latino, Indigenous, and other underserved communities face significant barriers to accessing loans and
capital, hindering their ability to thrive. This issue is evident in the 46-year history of the federal Community
Reinvestment Act, which highlights the inadequacy of race-neutral alternatives in overcoming discriminatory
lending practices. There is a very strong argument that race-neutral alternatives are insufficient to overcome
the impact of discrimination in lending.20
Traditional banks assess loan applicants based on credit scores, proof of income and collateral, focusing on
individuals deemed likely to repay their loans. However, these systems often exclude many Black, Latino and
Indigenous consumers due to income and wealth gaps, poor credit, outstanding debt, limited assets, and
precarious income. These disparities are perpetuated by structurally racist factors such as historic redlining,
discriminatory lending practices, over-incarceration, and a FICO scoring system that penalizes individuals for
minor infractions. Consequently, Black, Latino and Indigenous borrowers either forgo opportunities for
20 NCRC’s Written Testimony For The Bank Community Reinvestment Hearing On March 2, 2023 Code Citation: 38 Ill. Adm. Code 345
https://ncrc.org/incorporating-race-into-the-illinois-community-reinvestment-act/#_ftn4
COMMUNITY REINVESTMENT PLAN REPORT 49
homeownership and entrepreneurship, missing out on wealth-building possibilities, or turn to predatory lending
alternatives with exorbitant interest rates.
Washington has approximately 60 CDFIs that provide financing to underserved communities, including rural,
urban, and Native communities. However, most CDFIs are white-led, and while efforts have been made to
focus on equity and anti-racist approaches, disparities persist between CDFIs led by Black, Latino and
Indigenous community members and their white counterparts. Black-, Latino- and Indigenous-led CDFIs and
emerging lenders face challenges in accessing loan and operating capital, limiting their ability to make
impactful loans, provide technical assistance, and sustain their operations. These lenders often have deep
local knowledge and understanding of the needs and challenges within their communities but lack the
necessary funds to fully support their efforts.
Black-, Latino- and Indigenous-led CDFIs and emerging lenders operating in hyper-local environments offer
personalized technical assistance and coaching to borrowers. They utilize alternative underwriting models
based on character, revenue, or cash flow, resulting in low default rates. However, limited connections to larger
sources of loan capital and investor networks pose additional challenges for these lenders.
By providing increased lending capital, operating funds, and access to funding for hiring and training coaches
and technical assistance providers, Black-, Latino- and Indigenous-led CDFIs and emerging lenders can scale
their efforts and deliver long-term economic benefits to reinvestment communities across Washington. This
will facilitate greater access to affordable and suitable financing options, empowering individuals and
businesses in underserved communities to overcome systemic barriers and achieve financial stability and
success.
COMMUNITY REINVESTMENT PLAN REPORT 50
Homeownership Capital Accelerator
Program name: Investment: Economic Benefit Goal:
Homeownership Capital Accelerator $15 million $29.5 million over(10 years)
The Homeownership Capital Accelerator grant program would provide loan capital to lending agencies for
increased leverage to help reduce the buyer’s monthly mortgage payment and/or increase purchasing power.
This may include options like secondary mortgages to eliminate mortgage insurance. This fund will be a
significant investment to a lending institution to leverage additional secondary market mortgages for an
exponential impact on home purchases.
Economic benefit goal
The estimated 7% annual increase in equity suggests that the initial $15 million investment will grow to $29.5
million by year 10, benefiting homeowners and increasing assets in communities.
Program details
The CRP recommends allocating $15 million towards the creation of a Homeownership Capital Accelerator to
assist providers in meeting the CRP criteria for homeownership. This would have a positive impact on
households and communities, as homeownership leads to long-term economic benefits and equity in an
appreciating asset. It would allow for second mortgages to be issued, eliminating the need for mortgage
insurance on Fannie mortgages, thereby reducing payments and/or increasing purchasing power for up to 500
homebuyers. The activities that the accelerator can undertake include providing debt for earnest money,
accessing secondary market mortgages, purchasing secondary mortgages to eliminate mortgage insurance,
hiring staff to handle various home buying processes, and other activities that can reduce monthly mortgage
payments or increase the purchasing power of the buyer.
It is important to note that while a small portion of the $15 million is expected to be allocated for the capacity
and operations of a lending agency to ramp up its activities, the majority of the funds would serve as leverage
to purchase over $30 million in debt, enabling the origination of multiple mortgages. These mortgages, in turn,
can be leveraged for over $160 million in mortgage purchases. Consequently, the initial $15 million investment
would result in $200 million in mortgages.
Financial assistance and grants
The Community Reinvestment Plan, as directed by Legislature, encompasses various initiatives to promote
asset building, including home ownership and improved access to financial resources. Recognizing the
importance of financial literacy, credit counseling, and investment education, there is a focus on integrating
financial coaching alongside direct financial assistance.
"There need to be financial literacy classes. Credit counseling and investment education. There also needs
to be some education for folks to learn the benefits and the hazards of credit cards. There just needs to be
more of a focus on money management education and skills for our community. I believe if we educate
our community then there will be less of a fear of banks and other financial institutions and our
community may begin to invest and learn to build generational wealth." — Clorissa Lewis
Recommendation
In the Ten-Year Plan to Dismantle Poverty, the Poverty Reduction Workgroup recommended strategies for
equitable income growth and wealth-building opportunities for children, adults, and families with low incomes.
Among those strategies, they recommended establishing Individual Development Account programs for
COMMUNITY REINVESTMENT PLAN REPORT 51
children and adults to encourage savings and investments in their future, like education, purchasing a home, or
saving for retirement.21
Allocations
Individual Savings Accounts: $25 million
Blended Capital Enhancements: $25 million
Cannabis Business Grants: $3 million
Community oversight
The Community Advisory Board, consisting of individuals with lived experience and representatives of By and
For organizations, must be provided access to track progress and key performance outcomes and be
consulted before specific policy decisions are made.
Key performance indicators
These investments track evidence of the following KPIs:
Number of homes purchased with grant and loan funding and retained over time
Number of small businesses and entrepreneurs receiving grant and loan funding
Number of participants completing financial coaching training
Number of participants in small business training and support programs
Number of new, living wage jobs created based on the ALICE standards
Number of living wage jobs retained
Amount of increased personal wealth generated
Percentage increase in incomes for individuals, families or a particular community
Individual Development Accounts
Program name: Investment: Economic Benefit Goal:
Individual Development Accounts $25 million $816 million over 10 years
The Individual Development Accounts (IDA) program is aimed at helping Black, Latino, and Indigenous
communities disproportionately impacted by the racial, social and economic disparities caused by the war on
drugs save for specific assets, such as education, housing, or starting/growing a business. The program
provides matched savings accounts up to $10,000 to participants, using their savings from earned income. To
participate in the program, individuals must undergo financial education and coaching to develop the skills and
knowledge necessary to effectively manage their finances and achieve their savings goals. IDAs have the
potential to have a significant positive impact on the financial well-being of impacted individuals and
communities, promoting economic mobility and stability.
Economic benefit goal
The initial $25 million investment in match savings accounts is projected to result in additional savings,
creating long-term economic benefits and assets for families.
Program details:
Individual development accounts (IDA) are special savings accounts to help families save money for qualified
purchases that will help them become financially self-sufficient. An IDA account may only be used for the
following qualified purchase: acquisition cost for a first home, postsecondary education expenses, or business
21 Final10yearPlan.pdf. (n.d.). Retrieved March 8, 2023, from https://dismantlepovertyinwa.com/wp-
content/uploads/2020/12/Final10yearPlan.pdf
COMMUNITY REINVESTMENT PLAN REPORT 52
expenses for self-employment. Participants deposit income earned through work into an IDA, and an
organization matches those funds, helping the participant reach their goal more quickly.
The Poverty Reduction Work Group and the Homeownership Disparities Work Group recommended the state's
reauthorization of funding for IDAs and other matched savings accounts. These recommendations
demonstrate the widespread support for IDAs as effective tools for poverty reduction and for promoting
economic opportunities for individuals and families in Washington.
Linking IDAs to other programs like workforce development came up in initial discussions with stakeholders
and was discussed with community members throughout the development of the CRP. A robust initial
investment with support from philanthropic partners was identified as a possible mechanism to create long-
term benefit potential for participants.
The state Individual Development Accounts (IDA) program (RCW 43.31.450-485) was launched in 2005 by the
Department of Commerce. During its two-year pilot, the program yielded the following outcomes: An
examination of 164 asset purchases revealed that homeownership was the most popular asset among
participants, with 74 homes purchased. The program was funded by the Legislature's investment of $1.7
million, which supported 520 accounts across 11 counties. Over the lifespan of the accounts, individual
account holders contributed $1.7 million in personal savings.
“Washington has one of the most progressive asset-building programs in the country. Our programs are
focused on the working poor, those people who are employed but whose incomes do not stretch as far as
today's economy requires. Twelve percent of people in our state live in 'income poverty,' but more than 20
percent live in 'asset poverty' under which, if they lost their income, they would not have sufficient savings
to live at poverty level for at least three months. Individual development accounts (IDAs) and outreach to
increase the 'take up' of federal earned income tax credits (EITC) are two of the most used approaches.
With the $650,000 state grant, we were able to leverage $800,000 in private and public funds for IDAs in
our county. Fifteen IDA 'graduates' have used the accounts toward purchasing a home or starting a
business. We offered free tax preparation sites and prepared returns for 500 families whose average
incomes were $19,000 per year. As a group, they got back $750,000, about $2,000 per family, which helped
them establish savings accounts, fix cars, and get educational help. We agree that contributions to foster
youth IDAs should be allowed not only from the youth themselves but from foster parents, clergy,
churches, and community organizations. We also agree with the policy change to allow persons with
disabilities to purchase not only work-related, but also community-related assistive technologies with IDA
funds. Isolation is a major side effect of having a disability, and it is important to reduce the isolation by
increasing community access." — Public testimony in support of HB 2898 in 2007 - 2008
COMMUNITY REINVESTMENT PLAN REPORT 53
Blended Capital Enhancements
Program name: Investment Economic Benefit Goal:
Blended Capital Enhancements $25 million $39.6 million over 10 years
The Blended Capital Enhancement program can assist beneficiaries in acquiring or securing assets through
loans, matched savings, and asset journey acquisition enhancement. This enhancement is the capital that comes
after matched savings and loans reach their limit, providing beneficiaries with additional funding to acquire and
secure their assets. The program is managed by a central entity or regional entities, and financial technical
assistance providers are required to provide a case statement for the amount requested for the asset journey
enhancement, stating the asset being acquired or secured, how the enhancement will help secure the asset, the
amount saved in the beneficiary's Individual Development Account, the loan amount, if applicable, and the
expected date of use. The maximum amount can be set for each asset journey. The CRP aims to support
beneficiaries in acquiring and securing assets such as purchasing a home, starting or scaling a business,
purchasing a vehicle, saving for post-secondary education, and reducing debt while increasing savings.
Program details
The Blended Capital Enhancement approach is designed to support beneficiaries in their asset acquisition
journey. This approach involves three methods: loans, matched savings, and asset journey acquisition
enhancements. An asset journey acquisition enhancement provides additional capital beyond matched
savings and loans, based on the beneficiary's needs and the collaboration between the financial technical
assistance (TA) provider, lending entity, and beneficiary.
For example, consider William, who completed an apprenticeship program and aims to start his own
electrician business. Through the CRP, William participates in an entrepreneurship support program and opens
an Individual Development Account (IDA) to save $10,000, which will be matched with an additional $10,000.
Working with a local CDFI, William expects to secure a no-collateral loan of $50,000 based on his projected
cash flow and the CRP's risk pool guarantee. Additionally, William, his business coach, and the CDFI determine
that he needs additional funds for an accountant, bookkeeper, and a used van. They request and receive an
extra $21,000 from the $30 million Blended Capital Enhancements fund to support his business establishment.
The $25 million fund is managed by a central entity or regional entities. Financial TA providers must submit a
case statement detailing the purpose of the requested funds, including the asset to be acquired or secured,
how the enhancement will support asset acquisition, the amount saved in the beneficiary's IDA, loan amount (if
applicable), and the expected date of use. If the enhancement funds can help lower an interest rate or
contribute to a down payment for specific needs, the TA provider should justify it. Proof of fund utilization and
a six-month follow-up report on the beneficiary and the asset are required from the financial TA provider.
Requests for funds must be submitted by a financial TA provider with the signatures of all parties involved, and
the funds are directly transferred to the beneficiary from the intermediary.
The Blended Capital Enhancements fund will remain in operation until fully expended, with maximum amounts
set for each asset journey. Examples of asset journeys include purchasing a home, entering limited equity
homeownership relationships, building detached accessory dwelling units, home repairs, starting or scaling a
business, purchasing commercial property, housing/retail development, buying a vehicle, saving for post-
secondary education, and reducing debt while increasing savings.
COMMUNITY REINVESTMENT PLAN REPORT 54
Cannabis Business Grants
Program Name: Investment Economic Benefit Goal:
Cannabis Business Grants $3 million $8 million over 10 years
The Cannabis Business Grants program is a financial assistance initiative aimed at supporting social equity
qualified license holders to provide funding for Black, Latino, and Indigenous communities disproportionately
impacted by the racial, social and economic disparities caused by the war on drugs. The program provides early-
stage financial support and technical training to cannabis licensees who meet the social equity definition. To be
eligible for the grant, an applicant must have majority ownership and control by at least one individual who has
either resided in a disproportionately impacted area for five of the last 10 years, or have convicted of a
misdemeanor marijuana offense or have a family member who has. The grants are awarded on a competitive
basis, with the strength of the submitted plan being the primary criteria for award consideration. The goal of the
Cannabis Business Grants program is to help prioritize these businesses in the state to develop and succeed by
providing financial and technical support.
HTFFSP heard from several community members who were interested in starting a cannabis business or who
had cannabis businesses. There are unique constraints that prevent these individuals from having robust
access to capital. Some of these restrictions would need to be addressed with changes in policies, which are
beyond the scope of this project.
Traditional banking and financing options are limited for cannabis businesses. Some of this is because of
prejudice or misinformation around cannabis businesses. The impact of this on cannabis business owners is
that it is difficult for many of them to secure loans, credit cards, lines of credit, or basic banking services (such
as checking accounts, savings accounts, payment processing). In several conversations with business owners,
particularly seasoned entrepreneurs, they described feeling like they were "trapped." This is a recurring and
structural problem that could take multiple strategies to adequately address.
It must be possible for businesses in the cannabis industry to access these funds, either directly or through a
subcontracted entity that will manage such investments. One of the reasons for the blended capital approach
(that is, loans plus matched savings plus grants) is that if cannabis businesses cannot get loans, this plan
provides another two options available to them. The barriers to entry for cannabis businesses are higher and
continue to be constrained by federal policy limitations imposed on certain institutions. This is why the
blended strategy is essential.
Communities spoke about the reality that many of their own family members and friends remain incarcerated
over cannabis laws of the past. In the meantime, people who were not personally negatively impacted by
Washington's discriminatory practices, racial profiling and drug policy have come into these affected
communities to reap the benefits, enhanced by the lack of business competition from community members
who could serve their own community if they were not incarcerated and had access to capital, credit and
finance. They speak to the importance of getting this investment from the Community Reinvestment Plan right
so that the money is not stuck in the same traps that prevent wealth creation for so many Black, Indigenous,
and Latino communities.
The result of the constraints of the financial industry is that cannabis businesses have limited access to
capital. For business owners who don’t have good credit, high-interest loans or predatory lending become the
only options available. Without traditional banking options or support, these businesses can only grow as
quickly as they are able to bring in enough customers to maintain operations. This constrains their ability to
grow and scale.
COMMUNITY REINVESTMENT PLAN REPORT 55
Here are common issues unique to investing capital in cannabis businesses:
Federal restrictions on cannabis22
Complex regulations23
Lack of financial history24
Stigma around the cannabis industry25
Overall, these challenges can make it difficult for cannabis businesses to secure the funding they need to
operate and grow. There are some alternative financing options available, (e.g., private investors,
crowdfunding, specialized lenders) that may be more willing to work with cannabis businesses despite the
federal restrictions, but they are not adequate for meeting the diverse capital needs of cannabis businesses.
Outreach and support
As directed by the Legislature, the Community Reinvestment Plan includes several ways to promote asset
building such as home ownership and expanding access to financial resources.
"We recognize that we can only achieve equity if communities impacted by inequity are at the center of our
work. We acknowledge that communities know best their assets, needs, and solutions. We strive to
recognize and share power and structure our meetings to foster meaningful engagement. We will strive to
incorporate stories of lived experience into our reports and recommendations." — Social Equity in
Cannabis Report
Recommendations
The Homeownership Disparities Work Group recommended funding culturally specific organizations for
outreach to increase access to homeownership assistance programs for Black-, Indigenous- and Latino-led
communities and to target homeownership assistance to their community via historical ties to culturally
specific areas.26
Allocations
Asset Building Initiatives:,$3 million
Financial Coaching and Mentorship: $10 million
Community oversight
The Community Advisory Board consisting of individuals with lived experience and representatives of By and
For organizations must be provided access to track progress and key performance outcomes, and be
consulted before specific policy decisions are made.
22 The federal government classifies cannabis as a Schedule I drug, which makes it illegal under federal law. This means that cannabis
businesses cannot receive federal grants or loans, and investors may be hesitant to invest in a business that could potentially be shut
down by the federal government
23 The cannabis industry is highly regulated, with complex rules and regulations that vary from state to state. This can make it difficult
for businesses to navigate the regulatory landscape and may require them to spend more money on legal and compliance services.
24 Many cannabis businesses are relatively new, and they may not have a long financial history or record of profitability. This can make
it difficult to secure funding from investors or traditional lenders who may be looking for established businesses with a proven record.
25 This was mentioned in several conversations with cannabis business owners
26 Improving Homeownership Rates for Black, Indigenous, and People of Color in Washington pdf (2022). Retrieved March 8, 2023,
from
https://app.leg.wa.gov/ReportsToTheLegislature/Home/GetPDF?fileName=Homeownership%20Disparities%20Recommendations%20
Report%20-%20FINAL%20-%20Sep2022_e0b6a028-62cf-478c-aa9b-52e5e5c66609.pdf
COMMUNITY REINVESTMENT PLAN REPORT 56
Key performance indicators
These investments track evidence of the following KPIs:
Number of homes purchased with grant and loan funding
Number of small businesses and entrepreneurs receiving grant and loan funding
Number of participants completing financial coaching training
Number of participants in small business training and support programs
Number of new jobs created
Number of jobs retained.
Amount of increased personal wealth generated
Percentage increase in incomes for individuals, families, or a particular community
Asset Building Initiatives
Program name: Investment: Economic Benefit Goal:
Asset Building Initiatives $3 million N/A
The Asset Building Initiatives grant program will provide funding to groups of organizations and individuals that
come together to promote and advance policies and programs that help Black, Latino, and Indigenous
communities disproportionately impacted by the racial, social and economic disparities caused by the war on
drugs, to build assets and achieve financial stability. These coalitions can focus on issues such as increasing
access to affordable housing, improving financial education and counseling, and promoting savings and asset-
building programs like Individual Development Accounts (IDA).
Asset Building Initiatives provide opportunities for Washington residents to build, maintain and preserve
financial assets. Asset-building coalitions are made up of By and For organizations and private, public, and
non-profit organizations and are focused on building wealth in their specific areas of Washington. The CRP
recommendation is to support the development and support of existing Black-, Indigenous- and Latino-
focused Asset Building Coalitions (ABCs), such as the Black Homeownership Initiative (BHI). BHI connects
capital and community to address the racial homeownership gap caused by structural racism and systemic
injustices.27
ABCs provide leadership on initiatives that foster financial self-sufficiency and economic security for low-
income working families and individuals. They identify and promote approaches that help low-income working
families build and manage their assets, including:
Creating private and public prosperity products
Promoting lending policies that encourage asset building
Marketing savings, smart borrowing and federal tax credit programs
Expanding financial literacy opportunities
ABCs involve collaboration at the local level among social service, faith-based, governmental, job training and
health care organizations and agencies, and the private sector, including financial institutions. ABCs are
recognized as important partners because they deliver direct services to low-income working families.
27 Retrieved from https://www.civic-commons.org/bhi
COMMUNITY REINVESTMENT PLAN REPORT 57
The Black Home Initiative (BHI) is a new regional effort to address these systemic injustices. BHI’s goal is to
generate 1,500 Black first-time, low-to-moderate income homeowners in the next five years in south Seattle,
south King County and north Pierce County. This multi-sector initiative is part of a national effort by the Center
for Community Investment (CCI)28 to target racial inequities in housing across six U.S. cities. Civic Commons29
is the convening organization for the Seattle site. To achieve its goal, BHI encourages the idea that we must all
work together to implement the Black Homeownership 7-Point Plan,30 a comprehensive plan that was the
result of the collaborative work of more than 90 partners.
HTFFSP spoke to people at Black Housing Institute, Center For Community Investment and Civic Commons to
understand what would be the best way to support building wealth for the communities harmed using the CRP.
ABCs play an important role since they allow for multiple perspectives to be brought to the table to address the
complex barriers to funding and their impacts.
Financial Coaching and Mentorship
Program name: Investment: Economic benefit goal:
Financial Coaching and Mentorship $10 million $20 million over 2 years
The Financial Coaching and Mentorship program will provide $10 million in grants for community organizations
and financial institutions to hire 45 to 50 full-time employees for two years. These employees will provide trauma-
informed financial coaching, business coaching, and homebuyer education to households in a culturally
responsive manner. The program aims to help individuals and families build a financially stable future while
honoring their cultural backgrounds. The financial coaching and technical assistance will be integrated into all
aspects of the CRP recommendations, including home ownership, startup/scale up lending, construction loans,
detached accessory dwelling unit loans, and debt remediation. All loans, grants, and matched savings will be
accessible to beneficiaries through lender/TA integration.
Financial coaches can be integrated with career coaching, education, or lending programs to help families achieve
long-term goals such as attaining a self-sufficient wage, reducing their debt-to-income ratio to less than 45%,
improving their credit score to at least 650, and accumulating savings equivalent to three months of living
expenses. To ensure the desired outcomes, it is crucial to track participants' progress over the long term. Some of
the expected results include obtaining or maintaining employment, obtaining a vocational credential or AA degree,
receiving additional public benefits for income support, improving credit ratings, opening savings and checking
accounts, reducing debt, contributing to monthly savings, and saving for retirement or children's education. As an
intermediate goal, families will work towards improving credit, increasing their income to narrow the gap between
their current income and self-sufficiency, and initiating the building of savings or assets.
Financial coaching paired with direct financial support can help build the financial capability of individuals and
families. Financial coaching can provide education and training on budgeting, saving, credit management, and
other financial skills, which can help these individuals and families manage their money more effectively, build
assets, and improve their financial well-being. Direct financial support, such as grants or loans, can provide the
necessary resources to help these individuals and families achieve their financial goals. It is essential that this
financial coaching be trauma-informed and healing-centered. Similar to the findings from the Washington State
Poverty Reduction Work Group, during the development of the CRP, community members and stakeholders
discussed the value of understanding structural racism and historical trauma, taking action to undo their
28 Retrieved from https://centerforcommunityinvestment.org/
29Retrieved from https://www.civic-commons.org/
30 Retrieved from Black Homeownership 7-Point Plan
COMMUNITY REINVESTMENT PLAN REPORT 58
harmful effects in policy and programs, addressing the urgent needs of people experiencing homelessness,
violence, mental illness, and/or addiction, and building an integrated human service continuum of care that
addresses the holistic needs of children, adults, and families.31
The Financial Coaching and Mentorship program would include specific accommodations for people who are
undocumented, who speak languages other than English, who are neurodiverse, and those who may find
completing paperwork in English difficult. In our research, we heard from several disabled Black queer and
trans people who cited neuro-divergence as being one of the biggest challenges they face when encountering
financial mechanisms.
Financial coaches and technical assistants, similarly, should be required to demonstrate training in the specific
needs of communities harmed by the war on drugs, cannabis businesses, and structural barriers to capital.
Technical assistance (TA) providers working within the cannabis industry sector should be required to take the
TA online courses provided through the Cannabis Business Social Equity Plan. Additionally, TA providers
should demonstrate connection and experience in achieving results for communities harmed by the war on
drugs. This ensures that each TA provider is aware of the structural barriers to capital. If the Office of Equity
releases required training for government workers, TA providers should be required to take the same or
comparable training. They are also required to take an online course and demonstrate competency in
understanding how structural violence may manifest as community and interpersonal violence. Additionally,
TAs should demonstrate an understanding of the barriers to civil and legal assistance for communities harmed
by the war on drugs. This requirement should be written into their contracts.
When HTFFSP spoke to community organizations about the language to use for this program, they noted that
financial coaching was not a term that many felt connected to them. They described how mentorship, peer-
based support, and other language were more familiar and, therefore, more likely to be something they would
apply for, if it were delivered via grants or contracts. Communities offered many solutions to making this
effective for their communities, such as pairing certified financial advisors with By and For organizations so
that the mentorship could include increasing access to accurate and helpful financial advice from a vetted
professional. They also spoke about how this sort of support could build organizations’ capacity in the long-
term so that they can provide more robust support that can create long-term economic benefits for their
communities.
Financial Opportunity Centers (FOCs) and Centers for Working Families (CWFs) are community-based
organizations that provide a range of integrated services to help low-income individuals and families achieve
financial stability and success. The following are two case studies of FOCs and CWFs:
Case study: United Way of Greater Atlanta's Centers for Working Families
The United Way of Greater Atlanta's Centers for Working Families (CWFs) are community-based centers that
provide integrated services to help low-income individuals and families achieve financial stability and
success.32 The CWFs provide various services, such as financial coaching, job training and placement, and
access to public benefits. One CWF in Atlanta, the Westside Works Center, has been particularly successful in
helping individuals and families achieve financial stability.33 The center provides job training and placement
31 Final10yearPlan.pdf. (n.d.). Retrieved January 8, 2023, from https://dismantlepovertyinwa.com/wp-
content/uploads/2020/12/Final10yearPlan.pdf
32
The Center for Working Families, Inc. (n.d.). Services. https://www.tcwfi.org/training-programs/srevices/
33
CareerRise Atlanta. (n.d.). About Westside Works. https://careerriseatlanta.org/westside-works/about-westside-works/
COMMUNITY REINVESTMENT PLAN REPORT 59
services, financial coaching, and access to public benefits. Participants in the program receive one-on-one
coaching and support to help them achieve their financial goals.
A study of the Westside Works Center found that it was effective in helping participants achieve financial
stability. Participants who received services from the center were more likely to be employed, increase their
income, and achieve financial goals such as reducing debt and increasing savings. In addition, participants
reported higher levels of financial literacy and confidence in their ability to manage their finances.34
Case study: LISC Financial Opportunity Centers
The LISC Financial Opportunity Centers (FOC) are a network of community-based centers that provide
integrated services to help low-income individuals and families achieve financial stability and success. The
FOCs provide various services, such as financial coaching, job training and placement, and access to public
benefits. One FOC in Chicago, the Instituto del Progreso Latino, has been particularly successful in helping
individuals and families achieve financial stability. The center provides job training and placement services,
financial coaching, and access to public benefits. Participants in the program receive one-on-one coaching and
support to help them achieve their financial goals.
A study of the Instituto del Progreso Latino found that it was effective in helping participants achieve financial
stability. Participants who received services from the center were more likely to be employed, to increase their
income, and to achieve financial goals such as reducing debt and increasing savings. In addition, participants
reported higher levels of financial literacy and confidence in their ability to manage their finances. The center
has received widespread recognition as a model for integrated service delivery and has been replicated in
other cities across the United States.
The ability to access mainstream lending to buy a home, start or scale a business, purchase a vehicle, or
address other consumer needs are key factors that strengthen local communities. Yet, many Black,
Indigenous, and other underserved communities have significant barriers to access lending and capital to help
all communities thrive. There is a very strong argument and various legislative testimony for concluding that
race-neutral alternatives are insufficient to overcome the impact of discrimination in lending.35 The 46-year
history of the federal Community Reinvestment Act is a telling example.
Community Development Financial Institutions
The Community Development Financial Institution (CDFI) Fund is an innovative federal initiative within the
Treasury Department established in 1994 through the Riegle Community Development and Regulatory
Improvement Act. The initiative is intended to promote community development in distressed urban and rural
communities by increasing the availability of credit, investment capital and financial services available. Since
1994, the CDFI Fund has awarded $2.3 billion on a competitive basis to CDFIs, including Native CDFIs, small
and emerging CDFIs and financial institutions through the BEA Program.
Promising results: Since 1996, $42,335,759 in CFDI funds has been awarded to Washington organizations.
CDFIs are often assumed to have a race-blind mission to alleviate poverty and provide wealth opportunities in
under-banked communities. In fact, CDFIs were formed specifically to address the racial wealth gap resulting
from years of exclusionary, racist economic policies like redlining.
34
Retrieved from https://saportareport.com/homelessness-an-income-first-approach-promotes-transition-to-stable-
housing/columnists/guestcolumn/david/
35
NCRC’s Written Testimony For The Bank Community Reinvestment Hearing On March 2, 2023 Code Citation: 38 Ill. Adm. Code 345
https://ncrc.org/incorporating-race-into-the-illinois-community-reinvestment-act/#_ftn4
COMMUNITY REINVESTMENT PLAN REPORT 60
It is important to recognize that some businesses (such as cannabis) may face unique barriers to accessing
funding and that CDFIs may not provide a sufficient solution to support them. That is why it is important to
ensure that any solution is designed in collaboration with the communities harmed by the war on drugs to
avoid the creation of unintended negative consequences.
Small business and entrepreneurship
The Department of Commerce’s Startup Washington website36 serves as a clearinghouse for all the
information and resources entrepreneurs, startups, and small businesses need to achieve success, including
funding sources, training, technical assistance, mentorship, and education. Entrepreneurship offers a path to
wealth-building and sustainable income for all residents. The types of classes offered by Startup Washington
under the “Starting a Business” category include Entrepreneur Academy, The Business Startup Playbook,
Mastering Finances, Creatives Academy, Sizeup, Work Spaces, Startup Wisdom, Access to Capital,
Entrepreneur Resources, Property and Site Search, Global Entrepreneurship Month, and Startup Centers.
Due to low homeownership rates, lack of generational wealth, and income gaps, Black-owned businesses
launch with an average of $35,000, compared to $107,000 for white-owned businesses.37 This means that a
robust investment of at least $72,000 would be needed for the average Black business to achieve parity with
the average white business. This is important to recognize because the average amounts provided to
businesses who participate in accelerator programs or training programs like Startup Washington tends to be
closer to $10,000, often in loans and therefore subject to credit checks.
There remains a clear opportunity to expand access in several communities, especially through Black-, Latino-
and Indigenous-led CDFIs that understand the particular needs of Black, Indigenous, and Latino entrepreneurs
in relation to access to capital for asset building. Further exploration with community members, stakeholders,
and existing reports informed the direction of this area for reinvestment under this plan.
Promising results: Recently, Find Ventures, in partnership with Commerce, announced its plans to launch a
new Equitable Innovations Accelerator38 to fuel the startup community at the earliest stage of business
development. This program aims to make “entrepreneurship for all” a reality by prioritizing entrepreneurs from
underserved and historically marginalized communities.
In April 2022, the partners selected 10 new tech startups that will begin the program focused on mentorship,
philanthropic funding of up to $100,000 in a non-dilutive grant, and programming to help guide founders
through their journey. The diverse cohort is comprised of founders throughout Washington, with 20%
identifying as LGBTQ, 45% based outside of Seattle, 60% women, 60% first-time founders, and 70% of teams
identifying as Black, Middle Eastern, Asian and/or Latino.
36
Washington State Small Business Training & Education Center, n.d., Retrieved from http://mystartup365.com/
37
Building supportive ecosystems for Black-owned US businesses October 29, 2020 | Article
38
“Find Ventures & Department of Commerce Open Applications for New Equitable Innovations Accelerator,” 2021, Retrieved from
https://www.findventures.org/blog/press-release-find-ventures-department-of-commerce-open-applications-for-new-equitable-
innovations-accelerator/
COMMUNITY REINVESTMENT PLAN REPORT 61
Workforce development
As directed by the Legislature, the Community Reinvestment Plan includes several ways to promote job
creation and job retention for long-term economic benefit.
"According to the FPL, 10% of households in Washington (299,696) were in poverty in 2021. Yet United For
ALICE data shows that another 24% (727,292 households) — more than twice as many — were ALICE
(Asset Limited, Income Constrained, Employed). ALICE households earn above the FPL, but not enough to
afford the basics in the communities where they live." — ALICE 2021 Report 39
Recommendations
In the Ten-Year Plan to Dismantle Poverty, the Poverty Reduction Workgroup recommended equitable
education, income growth, and wealth-building opportunities for children, adults, and families with low
incomes. In addition, they recommended establishing Individual Development Account programs for children
and adults to encourage savings and investments in their future, like education, purchasing a home, or saving
for retirement.40
Allocations
EcSA Career Accelerator Incentives
EcSA Business Support
Key performance indicators
These investments track evidence of the following KPIs:
Number of small businesses and entrepreneurs receiving grant and loan funding
Number of participants completing financial coaching training
Number of participants in small business training and support programs
Number of new jobs created
Number of jobs retained.
Amount of increased personal wealth generated
Percentage increase in incomes for individuals, families or a particular community
Number of individuals provided an incentive payment
Number of individuals pursuing training
Number of individuals reaching their customized self-sufficiency earnings goal
Number of businesses served
39 ALICE in the Crosscurrents. (n.d.). Retrieved March 8, 2023, from
https://www.unitedforalice.org/Attachments/AllReports/23UFA_Report_Washington_4.11.23_Final.pdf
40 Final10yearPlan.pdf. (n.d.). Retrieved March 8, 2023, from https://dismantlepovertyinwa.com/wp-
content/uploads/2020/12/Final10yearPlan.pdf
COMMUNITY REINVESTMENT PLAN REPORT 62
Economic Security for All (EcSA) Career Accelerator Initiatives
Program Name: Investment: Economic Benefit Goal:
EcSA Career Accelerator Incentives $10 million N/A
The Economic Security for All (EcSA) Career Accelerator Incentives grant program is designed to support
individuals as they work towards economic security and stability, with a focus on justice-involved individuals (and
their families). This includes individuals from Black, Indigenous, and Latino communities disproportionately
impacted by the racial, social and economic disparities caused by the war on drugs. Underemployed job seekers
can receive training, support payments, financial coaching, and financial incentives of up to $1,000 as they
achieve specific goals such as obtaining an industry-recognized or post-secondary credential, gaining
measurable skills, finding employment, or reaching a certain median wage.
The program provides $10 million in EcSA incentive payments to help low-income individuals stay on a career
pathway leading to a living wage career, with a focus on Black, Latino and Indigenous communities and equity.
Priority will be given to individuals above 200% of FPL. Those below their self-sufficiency wage are also eligible
based on local program justification. Local Workforce Development Boards will develop local policies and
leverage their existing EcSA funding to provide additional services, such as navigation, career planning, training,
supportive services, paid work experience, and career placement. All EcSA participants will be automatically
eligible for matched savings programs, once developed by the CRP teams. Local Workforce Development Boards
will conduct outreach and help interested EcSA participants enroll in matched savings programs, once available.
Program Details
The EcSA initiative is a poverty reduction model that coordinates existing programs to increase their collective
ability to support low-income Washingtonian residents in their pursuit of equity, dignity and sustained self-
sufficiency. A combination of intensive program navigation, local innovation, and flexible support fills gaps and
meets needs within existing programs and regulations. At the local level, EcSA is run by partnerships of
community service providers, includes the voices of those who have experienced poverty, and is convened and
coordinated by local workforce development boards (LWDBs). EcSA's innovative approach to equitably reduce
poverty focuses on historically marginalized populations and people with multiple obstacles to self-sufficiency.
This effort is aligned with Strategy 3 and Strategy 6 of the 10-year Plan to Dismantle Poverty, focusing on
equitable growth, wealth-building, and holistic support for families in poverty. This additional funding will be
targeted to individuals who are underemployed and above 200% of FPL to support a continuum of career
services to align participants to opportunities.
In 2019, Gov. Jay Inslee piloted EcSA using federal Workforce Innovation and Opportunity Act (WIOA) funds.
Initial funds were awarded to four local partnerships in July 2019. A second round of funding was awarded in
June 2021 to seven additional local partnerships, totaling approximately $12 million in both rounds.
In 2022, the Legislature appropriated state funds for EcSA in proviso, expanding its capacity to deliver
comprehensive and coordinated services to Washington residents who live in poverty. This proviso requires
two reports from the Employment Security Department (ESD).
Washington’s 12 LWDBs, located in every region of the state, are an important piece of the workforce
development solution. They serve almost 80,000 individuals annually and help nearly 20,000 businesses fill
vacant positions.
With proviso funding, ESD began working with the LWDBs. Together, this group co-designed implementation,
agreed to targets and executed contracts. Each LWDB collaborated with local leaders from social service,
COMMUNITY REINVESTMENT PLAN REPORT 63
education and workforce programs — as well as people with lived experience of poverty — to better coordinate
their programs, focus on human-centered service delivery, and execute local contracts. The LWDBs lead these
local partnerships, streamlining services to help more low-income families move out of poverty. Each local
service model was developed in partnership with people who have lived experience of poverty. This is critical,
as people experiencing poverty have repeatedly shared feedback that programs are siloed and disjointed.
EcSA has acted on its input to improve coordination and make programs easier to use together, relying on
local coordination teams to bundle services.
The first round of EcSA funding was distributed among four workforce development areas, each with its own
replicable model designed to demonstrate success. The funded areas and their models include:
Benton-Franklin Workforce Development Council ($856,755): This model focuses on Connell and aims to
provide transportation to opportunities and resources in the Tri-Cities area. It also emphasizes access to
health care, affordable childcare, and employment and training in high-demand occupations.
Spokane Workforce Development Area ($1.7 million): Building on the Spokane Resource Center (SRC), this
model enhances accessibility to services by co-locating multiple organizations in one place. The goal is to
reduce poverty and homelessness while expanding access to healthcare, substance abuse, and mental
health services. The model also supports SNAP recipients in acquiring skills and training for family-
sustaining careers.
Southwest Workforce Development Area ($1.6 million): In the Kelso area, this public-private partnership
involves collaboration with the local manufacturing industry. The model provides job site access to various
community programs that help individuals gain support, skills, and employment opportunities to move out
of poverty. Additionally, it focuses on creating inclusive workplaces, targeting underemployed individuals,
and supporting employers in hiring and training for sustainable wage positions.
WorkForce Central ($1.75 million): Based in Tacoma, this model combines best practices from existing
models to establish a 211-based Common Referral System. This system virtually connects partners and
programs, simplifying access to multiple services. The Salishan Association Family Investment Center
serves as a central hub for training, education, employment, and addressing personal or financial barriers.
In January, the Governor's Office announced an additional $5.5 million in funding to expand EcSA statewide,
allowing more flexibility for workforce development organizations to set up local implementation plans and
adapt procedures to virtual environments.
Promising approaches identified through the original groups include:
Service coordination through physical co-location or the 211 Common Referral System, streamlining
access to multiple services for participants.
Coordinating Workforce Innovation and Opportunity Act (WIOA) and non-WIOA services to address
personal and financial barriers for participants on their path to employment.
Concentrating efforts and funding on specific high-need areas rather than spreading resources across
larger geographic regions.
Implementing navigators as primary points of contact to mentor, guide, and support participants in
accessing the necessary services.
Each local Workforce Development Council, in collaboration with partners, the EcSA Technical Advisory Group
and ESD, is currently planning the implementation of fiscal year 2024 (July 1, 2023-June 30, 2024) State EcSA
funds. This is the appropriate time to build in these additional incentive funds and continue improving local
approaches to streamline access to services and benefits and foster thriving communities.
COMMUNITY REINVESTMENT PLAN REPORT 64
EcSA Business Support
Program name: Investment: Economic Benefit Goal:
EcSA Business Support $15 million $24 million over 2 years
The EcSA Business Support grant program aims to support Black, Indigenous, and Latino businesses in
participating in the Workforce Innovation and Opportunity Act (WIOA) while helping job seekers acquire the
necessary skills and experience to secure long-term employment. With $15 million in funding, the program
provides EcSA business navigator services to help Black, Indigenous, and Latino businesses identify and access
existing state systems that can help their company succeed, including customized workforce training programs
and wage subsidies. The program also provides recruitment of local talent, hourly pay for training, subsidized on-
the-job training, equipment purchases, and training by colleges or other providers. The program partners with
local organizations and businesses to provide services to priority populations.
Program details
The CRP should support the creation of early workforce development pipelines that show youth how jobs can
be enjoyable and benefit the community. This may involve using artistic and cultural tools to build workforce
development systems for youth in legal services, violence prevention, and consulting. For example, the CRP
should fund cultural events serving the dual purposes of offering employment opportunities to youth and
providing fun, outreach activities for the community, such as concerts.
Workforce development pipelines should target youth as early as possible, allowing them to experience jobs
that are joyful and give back to their communities. This approach would require intentional thinking around
how artistic and musical expression can be used to foster interest in high wage careers. This echoes what
HTFFSP heard in interviews, where community members are using artistic and cultural tools to build workforce
development systems to get youth into careers in legal services, violence prevention, and consulting.
The research, inclusive of previous reports, interviews and focus groups, has found that restorative justice and
healing-centered approaches to case management and systems navigation are frequently identified as both a
need and an opportunity for workforce development. The creation of community-based programs that result in
well-paid jobs that simultaneously meet community needs was a popular recommendation. Operationalizing
this will require support for small businesses and nonprofits led by the communities they serve. This includes
the leadership of youth, elders, and community members who are able to bridge generational gaps.
Recognizing the justifiable mistrust in existing systems, communities are eager to support the high-quality and
culturally responsive solutions they have been creating in the absence of robust support.
Community-based solutions have been described as more cost-effective and appropriate for achieving positive
outcomes, compared to institutionally-focused solutions, despite inadequate and inconsistent reports.
Because there are programs that communities have identified as ineffective, despite larger budgets, it is
important that a strong accountability process is incorporated into the design of interventions funded through
this source. It is important to recognize that while communities want strong systems, they are also advocating
for the removal of barriers and siloes that stymie their progress.
The undoing of structural oppression and injustices caused by the war on drugs isn’t about helping people be
better at jumping through hoops, but by helping to remove the bureaucracy, cultural and social disconnect, and
other barriers from the experience altogether. Doing this may require partnering with government workers,
including policymakers and policy implementers in paid consulting roles to support the transition out of
institutional oppression. These jobs must be staffed by people who have the specific expertise that comes
with lived experience to speak to the specific and interlocking systemic oppression that policies and practices
COMMUNITY REINVESTMENT PLAN REPORT 65
cause. One of the key areas identified by the research and interviews to help illustrate this point is helping to
prevent the burnout of the government workers who are advocating to create sustainable changes in
throughout government, such as the workers who participate in groups such as Government Alliance on Race
and Equity (GARE).
Economic development includes addressing wealth disparities to promote asset building such as home
ownership and expanding access to financial resources. One of the top recommendations in this area is to
create ecosystems for financial health, asset building, and long-term economic benefits.
Area 3: Civil and Criminal Legal Assistance
The Legislature identified legal assistance as one program area to focus Community Reinvestment funding on,
specifically "civil and criminal legal assistance to provide post-conviction relief and case assistance, including
the expungement of criminal records and vacation of criminal convictions."
The Community Reinvestment Plan recommends allocating funding in this program area through two strategic
sets of investments.
Vacating Criminal Records and Legal Financial Obligations Relief
Legal representation
A criminal record creates lifetime barriers for people. One in three people in the U.S. today has a criminal
record that appears on a routine background check. Decades of federal, state, and local criminal legal system
policies and practices that disproportionately target Black, Indigenous and Latino people have made it so that
criminal records are more common in these communities.
This suggests that the legal assistance investments mentioned in this plan, namely hiring trained staff and
attorneys to support record clearing, would be beneficial to the community.
Key performance indicators
These investments track evidence of the following KPIs:
Number of criminal records expunged and convictions vacated
Number of successful post-conviction relief cases
Number of cases assisted
Amount of legal financial obligations resolved
Vacating Criminal Records and Legal Financial Obligation (LFO) Relief
"Not all judges follow LFO reform. People lack awareness of their LFO rights, and it falls on advocates to
explain the changes. Legal aid for LFOs and expungement is crucial, as resources are available but often
unknown. It's essential for individuals, families, and communities, as erasing discrimination in housing and
jobs won't help with loan accessibility due to credit scores from debt. Legal aid support for LFOs is
necessary." — Marcy Bowers
Recommendation
The Statewide Reentry Council recommended centralizing support services before and after release.
COMMUNITY REINVESTMENT PLAN REPORT 66
Community oversight
The Community Advisory Board, consisting of individuals with lived experience and representatives of By and
For organizations, must be provided access to track progress and key performance outcomes and be
consulted before specific policy decisions are made.
Promising results
In 2016, Code for America launched an online intake tool to connect people with the legal aid they need to
navigate California’s expungement process. With this tool, the team helped 27,000 people connect to legal aid
services. But they also saw firsthand how the petition-based process wasn’t working. They re-envisioned the
record clearance process to be accessible to anyone and everyone who needs it and created a software
solution to automatically clear records.
“Creating pathways to lower debt build assets is essential to closing the inequality gap and increasing net
worth, as well as preparing BIPOC households for homeownership. Your approach to providing accessible
legal assistance is right on point, especially as it involves eliminating debt or debt remediation. And it will
greatly increase opportunities to build assets across generations.” — Maisha Barnett, Black, service
provider, artist, and communications expert
The pairing of these automatic tools with a consent-based approach of offering to connect beneficiaries
directly with resources is one of the recommendations of this report. This form of transparency and low-cost
solution can have a large impact on the lives of people who are navigating criminal and civil legal systems. By
leveraging natural touch points with the community (such as notification of their record being updated or
removed), government agencies can connect the community to a database that technical assistance and
capacity building providers can use to offer services. The data could be anonymized, and people could join
from multiple sources, such as entering the system through contact with the foster care system or through
workforce development programs. Communities want a simple way to be informed about this resource, as well
as for technical assistance providers to assist them in the process. The recommendation is to include staff
who would engage with this software — or who would provide stop-gap support — under this investment.
This strategy would accomplish both of those goals.
The need for robust legal representation, particularly representation that goes beyond criminal law, was a
recurring theme. While having community and peer support is helpful, there are times when a lawyer is the best
support for a positive outcome. Whether that is to get support with prior legal issues or representation for a
family or immigration law matter, a lawyer can play a unique part in helping people get the things they need.
The Poverty Reduction Work Group (PRWG) in Washington proposed funding meaningful access to legal
assistance and representation for children, adults, and families disproportionately affected by poverty and
racially biased systems. In addition, they recommended funding legal services programs to increase capacity
to provide legal assistance and representations to incarcerated people, formerly incarcerated people and
justice-related families in their ongoing civil legal needs from reentry to release. The CRP echoes these
recommendations.41
41 Final10yearPlan.pdf. (n.d.). Retrieved March 8, 2023, from https://dismantlepovertyinwa.com/wp-
content/uploads/2020/12/Final10yearPlan.pdf
COMMUNITY REINVESTMENT PLAN REPORT 67
Program Name: Investment: Economic Benefit Goal:
Vacating Criminal Records and LFO Relief $2 million $70 million over 10 Years
Washington state offers self-help online court forms and instructions for individuals seeking to vacate a felony
drug possession conviction or related charges in a Washington State Superior Court, as well as request a refund
of legal financial obligation (LFO) payments. By answering questions, these forms generate a completed motion,
order, notice, and proof of service forms. The Department of Commerce should provide funding to the Office of
Civil Legal Aid to support outreach and education to support the vacating of criminal records and LFO relief.
OCLA should develop an automatic criminal record sealing software to vacate criminal records and resolve legal
financial obligations (LFOs). The project involves creating a tool that automates the vacation of criminal records
and LFO remission processes and is accessible in all 39 counties, with a budget of $2 million over two years.
Additionally, an 18-month pilot program will be carried out in King and Pierce counties, partnering with impacted
communities to provide outreach, self-help tools, legal navigators, and lawyers to scale criminal record and LFO
relief for Black, Latino, and Indigenous communities and individuals.
Legal Representation
Outcomes:
Program Name: Investment:
Dollar amount of LFOs
Legal Representation $6 million
resolved
The Legal Representation grant program aims to address the needs of Black, Indigenous and Latino individuals
impacted by the criminal justice system in disproportionately affected neighborhoods in Tacoma and Seattle.
The grant program aims to provide comprehensive support to individuals impacted by the criminal justice
system, enhance legal reentry services, and foster collaboration among legal service providers. The program
ensures transparency and accountability through the involvement of a Community Advisory Board. It consists of
three key components:
Outreach and Navigation ($400,000): This initiative focuses on providing immediate relief to individuals not
currently impacted by the criminal justice system. It supports outreach and legal navigation initiatives, with
an emphasis on peer-to-peer navigation and strategic partnerships. The goal is to establish a unified team
actively participating in the development of an automated system and assisting impacted individuals.
Expansion of General Reentry Legal Services ($4.1 million): This funding enhances the legal reentry capacity
within community-based organizations, By and For organizations, and existing legal aid providers.
Collaboration with embedded in-house attorneys leverages their expertise in reentry legal services. The
program is tailored to each organization's capacity and includes explicit pathways for engagement beyond
the existing CLEAR system. A Community Advisory Board ensures transparency and accountability through
regular updates on progress and key performance outcomes.
Integrated Reentry Legal and Public Defense Services Pilot Program ($1.5 million): This program focuses on
integrating reentry legal services with public defense services in targeted areas. Civil reentry attorneys
collaborate with public defense attorneys and clients to identify relief and mitigate collateral consequences,
such as vacatur, LFO remission, and re-licensure. They work with existing civil legal aid providers and the
automated tool project manager to address common concerns.
Recommendations for future investments in the Legal Assistance Program Area:
Customer Relationship Management Systems and other tools
During the development of the Community Reinvestment Plan, government and nonprofit leaders offered ideas
for what would be needed to have the best tool to further support this work. Those ideas include:
COMMUNITY REINVESTMENT PLAN REPORT 68
Implementing a shared Customer Relationship Management (CRM) system. This is the first priority, but not
within the scope of this project to implement. It would be a long-term investment should the program
continue.
Automated record-sealing paired with CRM support.
Many workers providing civil legal aid services are overworked and overburdened with the existing scale of the
needs across Washington. Some jurisdictions cannot hire enough staff or engage enough volunteers to meet
the need. There must be an automatic, collaborative statewide solution to address record sealing. This would
support reducing the caseloads of staff who are already over capacity. It would also allow smaller and rural
counties more support, which is critical given how fractured the court systems processes are in Washington.
Paired with a CRM system at the state level, this tool could help identify possible beneficiaries of a technical
assistance and capacity-building program.42 For example, when someone’s record is sealed, perhaps the
confirmation they receive also invites them to the resources available to help impacted individuals access
funding (such as Community Reinvestment grant programs, business services at local public libraries,
community foundations near them, or other local sources). One of the biggest hurdles for so many community
members is not knowing where to get started. This simple solution could help address some of these types of
issues as part of the implementation of the automatic records-sealing program.
According to our review of information available from the state Office of Financial Management, appropriate
and customizable off-the-shelf Software as a Service (SaaS) options and strategies could address gaps in
project controls. Meanwhile, nonprofits and community organizations have been using and adapting existing
commercial tools to support their efforts, though they often lack the robust budget to scale those solutions.
Core features of promising software solutions are covered in greater detail in later sections of this report and
appendices.43 Technical assistance and capacity-building providers also mentioned that a CRM is often helpful
for them as they manage and evaluate the effectiveness of their services.44 A similar approach for this
investment is encouraged, with anonymized reports being shared broadly so that the public can help
understand the approach and learn more about how they can access various new and existing funding. As long
as any CRM-related tools allow for exports via CSV files and can connect or leverage data updated elsewhere
(such as a funder’s dedicated website or a library systems’ business services page), they can be cost-effective.
Legal assistance through trained community members and public defenders
In the absence of robust support from the state, communities have engaged in creating solutions to increase
the number of legal clerks, paralegals, and similar roles to support diversifying legal support in Washington.
Programs have varying degrees of formality. In some cases, the programs are working in close partnership
with mentors who have served as judges, defense attorneys, and paralegals to design something new. In other
cases, there are existing strategies through formal internships and partnerships with schools and employers.
Caseloads and burnout are high, as reported by public defenders and volunteer legal professionals. The
compassion fatigue and the physical, emotional, and financial impacts faced by these providers are recurring
themes in conversations with community members and stakeholders. In developing this plan, community
members spoke, at times, about the positive impact that the support had in their lives, but also noted that it
can be dehumanizing to feel like a cog — or in some cases a foreign body — in the large machine that is the
42 Reddick, C. G. (2011). Customer Relationship Management (CRM) technology and organizational change: Evidence for the
bureaucratic and e-Government paradigms. Government Information Quarterly, 28(3), 346-353.
43 Al-Khouri, A. M. (2012). Customer relationship management: proposed framework from a government perspective. Journal of
management and strategy, 3(4), 34-54.
44 Pang, L. M., & Norris, R. (2002). Applying customer relationship management (CRM) to government. The journal of government
financial management, 51(1), 40.
COMMUNITY REINVESTMENT PLAN REPORT 69
criminal legal system. Communities across the state spoke about having many legal needs, but being
constrained by the kinds of legal professionals that were supporting them, especially if they had needs that
crossed specialties (such as family law, civil law, real estate law, criminal law). HTFFSP spoke with 10 lawyers
who serve or have served as public defenders. These lawyers said that in many cases their clients did not
necessarily need a lawyer, but did need someone who was able to help them navigate paperwork or legal
processes. Often, they wondered if a possible outcome would be to have a stronger up-to-date directory of
where such providers are, and a way to train new community members in these fields.
The Director of the Office of Public Defense shared that caseload is generally high for public defenders; as
many as 200 criminal cases can be assigned to a single attorney. He shared that we can assume that a
standard felony defense is 12.5 hours per case, including if a case goes to trial. It is difficult to catch up on a
client's story with so little time, let alone with sufficient detail to weigh multiple options for the next steps.
The importance of culturally specific and trauma-informed legal assistance was a recurring theme.
Communities spoke about how without such expertise, the whole process of legal assistance feels even more
dehumanizing and harmful. Communities said they wanted support from people who looked like them.
Stakeholders also discussed the differences they could see when communities were well-served by their own
communities. While multiple communities brought this up, including the communities harmed by the war on
drugs, there were specific solutions identified for certain experiences. For example, Black people generally
wanted to work with Black providers. Indigenous communities wanted people who had the tribal, nation, or
band affiliation of their specific community, instead of the label of Indigenous overall. Latino people generally
wanted someone who understood immigration policies and laws, in addition to someone who would be fluent
in the many languages of these communities, not just Spanish. Asian people generally wanted more specificity,
too, in terms of nationality and ethnicity. For example, community members spoke about how Southeast Asian
communities are often grouped together with communities that are less directly impacted. The histories of
refugee and immigrant communities engaged in this CRP development project were complicated by the global
design and enforcement of drug policies, including many that resulted in their forced migration to Washington.
Having to explain in greater detail each of the nuances related to this was often exhausting and beyond the
scope of the limited time communities would have with their lawyers or legal-focused support system.
Communities want to talk to someone already familiar with these considerations, and who can dive right into
being helpful to their specific situations. This includes both trained attorneys as well as trained community
members who do not have a law degree.
The CRP recommends that all CRP Technical Assistance (TA) providers would be required to understand some
of the basic legal barriers facing communities harmed by the war on drugs, and what kind of service provider
may be helpful for resolving issues. The goal is not necessarily that all TA providers are able to provide legal
services, but that they will all understand some of the complexities of the legal constraints that their
community clients may be facing and be able to direct them to those available resources.
Area 4: Community-Based Violence Prevention
The Legislature identified violence prevention as one program area to focus Community Reinvestment funding,
specifically focusing on "[c]ommunity-based violence intervention and prevention services, which may include
after-school programs focused on providing education and mentorship to youths."
The Comprehensive Community Violence Prevention and Intervention recommendations include a multi-
faceted approach aimed at addressing community-based violence and promoting safe and resilient
communities. The program consists of several grant programs that focus on different aspects of violence
prevention and intervention:
COMMUNITY REINVESTMENT PLAN REPORT 70
Violence Reduction
Community Healer
Youth Sports Capacity Building
Barber/Beauty Shop Health Navigation
Collectively, these programs aims to expand capacity in local communities to prevent and respond to firearm
violence through intervention, prevention, planning, and crisis intervention projects. The culturally responsive
Community Healer grant program aims to address the unique cultural and social needs of specific
communities by incorporating culturally sensitive approaches to healing. The Youth Sports Capacity Building
program aims to train and support volunteer coaches in community sports teams to reduce violent behavior
and victimization. The Barber/Beauty Shop Health Navigation program seeks to leverage barbershops and
salons as cultural hubs to provide health coaching, violence prevention, mental health support, and mentorship
to customers. These comprehensive initiatives align with the recommendations of the Washington Office of
Firearm Safety and Violence Prevention (OFSVP) and aim to foster safe, healthy, and hopeful communities
while addressing the historical trauma and systemic barriers faced by underrepresented communities.
Outcomes:
Number of people trained
Hours of training
Number and amount of stipends provided
Number of participants in community-based violence prevention services
Number of violent incidents deescalated
Number of individuals referred to support services
Number of individuals reached by violence prevention programs
Violence Reduction
Program Name: Investment: Economic Benefit Goal:
Violence Reduction $10 million $550 million over 10 years
Since its launch, the Washington Office of Firearm Safety and Violence Prevention (OFSVP) has distributed grant
funds in communities throughout Washington, supporting local efforts to prevent and intervene in firearm
violence. The programs are based on the understanding that the most effective solutions to crime and violence
come from the community and that there is a tremendous appetite at the community level to engage in
collaboration to keep neighborhoods and families safer. Further, OFSVP operates on the principle that, when
possible, violence intervention and prevention efforts work best when we partner with law enforcement and other
system partners. The OFSVP grant programs respect the unique needs of communities and using intentional and
coordinated investments to expand violence prevention and intervention capacity throughout the state. The
grants include intervention, prevention, planning, and crisis intervention projects.
This funding allocation should encompass resources dedicated to capacity building and technical support, which
will assist recipient organizations in satisfying the results-based accountability stipulations tied to these funds. In
addition, administrative backing should be provided to help providers comply with all grant requirements.
Program details
The Legislature created the Washington Office of Firearm Safety and Violence Prevention (OFSVP) in the
Department of Commerce to support and coordinate the implementation of evidence-based firearm violence
intervention and prevention strategies across the state.
COMMUNITY REINVESTMENT PLAN REPORT 71
OFSVP grant programs respond to lessons learned from local, regional and federal practitioners, while making
efforts to respect the unique needs of communities and using intentional and coordinated investments to
expand violence prevention and intervention capacity throughout the state. The grants include intervention,
prevention, planning and crisis intervention projects.
During the development of the recommendations in the Community Reinvestment Plan, communities spoke
with great emotion about how difficult it is to quantify the harms caused by firearm violence. They shared
poignant stories of lives lost to gun violence, including incidents related to gangs, road rage, domestic
violence, and accidents. The HTFFSP team also dealt with the loss of community members from gun violence
during the course of the creation of this report. This loss included Elijah Lewis, a 23-year-old activist from
Seattle, who was a member organizer of The Africa Town Community Land Trust and worked with the Alliance
for Gun Responsibility. He was tragically killed by gun violence just a few days after participating in a Friday
lunch hour session.
“I lost over 40 people and a lot of them due to gun violence.” — Elijah Lewis
A roadmap to reducing community violence
All communities in Washington should feel safe, valued, and have clear pathways to opportunities that include
high rates of personal, communal, and environmental health and eliminate the underlying disparities in safety
and health that impact underrepresented communities. These disparities exist because many communities of
color have experienced a long history of trauma through institutional and systemic racism. This history of
discrimination has resulted in disparities in access to employment, housing, education, and other opportunities
that communities need for their safety, health, and well-being. The legacy of this discrimination has
disproportionately impacted young men of color, particularly Black men. This affects the men, as well as their
families and communities.
Cities United is a connector, a facilitator, and an incubator of meaningful long-term change. It is building a
movement of cities, community organizations, public safety advocates, and young leaders to create safe,
healthy, and hopeful communities. Since 2011, Cities United has been a leader in advocating for holistic
approaches to gun violence. In 2018, it published the report "A Strategic Resource for Mayors on Disrupting
Community Violence and Preventing Homicides," which included extensive research along with lessons from
cities across the country has surfaced the following core elements of a comprehensive, public health approach
to reducing community violence. It provided detailed recommendations under each intervention area with
examples from across the country:
Engage youth, family, and community
Bolster family support
Boost education
Expand trauma-informed practice
Build an inclusive economy
Interrupt the cycle of community violence
Reshape criminal and juvenile justice systems
This resource outlines a roadmap to reducing community violence that mobilizes all corners of the community
and addresses both the program and policy interventions needed to help us change outcomes, save lives and
make sure all our communities are safe, healthy, and hopeful.
COMMUNITY REINVESTMENT PLAN REPORT 72
Reflections from community members
A community-based approach is particularly important because the harms caused by the war on drugs include
public divestment and the design and enforcement of policies based on structural racism and oppression.
Considering these specific harms is essential to creating place-based and community-based strategies to
effectively reach the communities most harmed. Communities shared multiple ideas in focus groups,
interviews, and community conversations across Washington; some of the highlights are listed here:
Make a training program that provides job experience and accountability. Center Indigenous and culturally-
specific traditions.
Invest heavily in STEAM (science, technology, engineering, arts, math) programs to support youth. While
many youth enjoy and are supported in sports, many Black, Indigenous, and Latino youth are also told that
sports are the only option available to them.
Support youth Indigenous artists. Support storytelling, beading, weaving, and other Indigenous art and
healing practices.
Foster accessible exposure to multiple industries. The more pathways to success that young people see,
the more opportunities they can access and create for themselves.
Invest deeply in prevention, including in developing healthy relationships and de-escalation training for all
people. Make it freely available to people of all ages, ideally as available as grocery stores and anchor
institutions.
Bring elders and youth together. This includes considering the unique wisdom and strengths of
intergenerational work.
Provide culturally specific nurturing training for caregivers, young mothers and parents. Support during the
hard work of caregiving can help adults to intervene and provide support before our children and youth are
faced with gangs, violence, and other issues.
Prevent domestic violence, abduction, and harm to women and femmes, including the specific strategies
needed to stop these traumas and violence done to Indigenous and Black communities. Gender-based
violence, including transphobic violence, must be stopped. This includes gender-based violence within a
community and violence between communities.
Peer mentorship and support to navigate legal systems, health systems, and economic systems (such as
housing, jobs, businesses). Communities spoke passionately about the importance of peers, especially due
to the distrust of existing systems that have been demonstrated to harm communities.
Youth Sports Capacity Building
Program name: Investment: Economic Benefit Goal:
Youth Sports Capacity Building $5 million N/A
The Youth Sports Capacity Building program provides community sports and activity teams up to $25,000 each.
This program would cover compensation for coaches, training for volunteers, and removal of barriers for youth
participation. Coaches play a crucial role in reducing violent behavior and victimization in the community. This
funding will train volunteer youth sports coaches in areas such as Social Emotional Learning, Positive Behavioral
Supports and Interventions, Second Step, De-escalation Tactics, and Trauma-Sensitive Practices. The instructors
providing the training must be culturally competent, credible messengers, and possess both the experience and
the skills needed to work with diverse populations.
Program details:
Community members recognize the important role that sports and activity coaches play in fostering safer,
more secure communities. A key target population of these initiatives is boys and young men of color, who will
benefit from community-building programs, youth outreach, and proactive prevention efforts.
COMMUNITY REINVESTMENT PLAN REPORT 73
This initiative will cover compensation for coaches, training for volunteers, and facilitate the removal of
barriers to youth participation. The role of coaches in this initiative is critical. Trained and involved coaches
serve as positive role models and have been shown to significantly reduce violent behavior and victimization
among youth. By providing youth with essential life skills and opportunities for personal and professional
growth, coaches can contribute significantly to community wellbeing.
To ensure coaches are equipped for this role, Commerce's Office of Firearm Safety and Violence Prevention
can serve as a funding source for training youth sports coaches in areas such as social-emotional learning,
positive behavioral supports and interventions, and trauma-sensitive practices. Physical education, group
activities and sports, forming the backbone of this initiative, are essential for the holistic development of
children and youth. They offer young individuals the opportunity to learn important life skills such as
sportsmanship, goal setting, conflict resolution, and healthy decision making.
In addition to their conventional coaching roles, the trained coaches will implement social-emotional learning
and positive behavioral interventions in their coaching practices, creating a network of shared learning. They
will also connect families to community resources that reduce barriers and support youth with trained program
staff. Furthermore, they will engage with parents and target neighborhoods for outreach and recruitment with
paid outreach.
The Community Reinvestment Plan recommends providing small grants ($10,000 to $25,000) to participating
teams to support training and compensate coaches and volunteers for their time. The Youth Sports Capacity
recommendation represents a strategic investment in Washington’s youth and the wider community. By
focusing on training and involving coaches in violence prevention, and leveraging the benefits of sport and
physical education, this initiative aims to create a safer, more supportive community for young people.
Community Reinvestment funding, by providing necessary resources and support, can help turn this initiative
into a reality.
Barber/Beauty Shop Health Navigation
Program Name: Investment: Economic Benefit Goal:
Barber/Beauty Shop Health Navigation $5 million N/A
The Barber/Beauty Shop Health Navigation program is a capacity grant program for to provide outreach and paid
training to, and certification of, barbers and beauty shop operators to deliver life coaching, violence prevention,
mental health, and mentorship to customers, addressing the need for community-based support and resources
for individuals. In particular, the barbershop and beauty shop is an important cultural institution in the Black
community, serving as a social hub where people come together to talk, share their experiences, and receive
grooming services. The goal of this program is to leverage this cultural significance to improve the health and
well-being of the community by providing access to critical resources and support.
One of the main reasons to implement this program is to address the lack of access to mental health resources
in the Black, Indigenous and Latino communities. Traditional mental health services often underserve these
individuals, who face significant barriers to accessing care, such as stigma, cost, and a lack of culturally-sensitive
providers. By training barbers/beauticians to provide basic mental health support and referral services, this
program aims to improve access to care and help address the mental health disparities. The instructors
providing the training must be culturally competent, credible messengers, and possess both the experience and
the skills needed to work with diverse populations.
The Poverty Reduction Work Group (PRWG) proposed increasing peer counseling, mindfulness programs and
educational programming to decrease cultural stigma around mental health and improve access to
appropriate after-school care and programming.
COMMUNITY REINVESTMENT PLAN REPORT 74
Program details:
The Barber/Beauty Shop Health Navigation program is an innovative initiative recognizing the important role
that barbers and beauty shops play in the community as both social hubs and trusted spaces. This program is
designed to leverage these characteristics to address the urgent need for mental health support.
Specifically, the program aims to utilize Community Reinvestment funding to offer capacity grants through the
Department of Commerce. These grants will provide barbers and salon owners with paid training (up to
$5,000) for additional certification in life coaching, violence prevention, mental health navigation, and
mentorship. This would enable basic mental health support and referral services for customers. Following the
training, barbers and salon owners will receive a small monthly stipend of $500 to $1,000, helping them provide
much-needed resources and support to customers during their conversations in the shops. This approach is
designed to foster a supportive environment within the shop, allowing customers to share their concerns and
receive guidance on various life issues such as career planning, bouncing back from personal setbacks, and
transitioning into independent living.
The Barber/Beauty Shop Health Navigation program is inspired by the success of The Confess Project Barber
Coalition, a growing coalition that has provided training to more than 2,000 individuals. This group is
committed to building a culture of mental health for Black boys, men, and their families through capacity
building, advocacy, organizing, and movement.
The ultimate goal of the Barber/Beauty Shop Health Navigation program is to address the significant barriers
to accessing mental health care that Black, Latino and Indigenous individuals often face, such as stigma, cost,
and a lack of culturally-sensitive providers. By empowering barbers to provide mental health support, the
program seeks to bridge this gap, enhancing the well-being of the community and addressing the mental
health disparities that persist in the community.
The Barber/Beauty Shop Health Navigation program is a powerful initiative that underscores the potential of
community-based support in improving health outcomes. Its unique approach and commitment to the
community make it a promising endeavor that deserves wide support.
Community Healer
Program Name: Investment: Economic Benefit Goal:
Community Healer $10 million N/A
The culturally responsive Community Healer program is a grant designed to address the unique cultural and
social needs of a specific community. This type of program recognizes that traditional Western approaches to
healing may not be effective for all communities and that cultural and historical factors can play a critical role in
an individual's health and well-being.
The healers are equipped to facilitate healing processes that are culturally respectful and relevant. The services
they provide range from mental health support, mindset coaching, and counseling to interventions for trauma
and stress management, all tailored to align with the cultural norms and values of the community they serve.
Moreover, these instructors work from a position of cultural humility, understanding the intersectionality of
individuals’ experiences, and how race, ethnicity, gender, class and other factors can influence one's healing
process. This ensures that the services they provide are not only effective but are also sensitive to the cultural
nuances and specific needs of the community members they serve. The instructors providing the training must
be culturally competent, credible messengers, and possess both the experience and the skills needed to work
with diverse populations. The staff must be representative of the community they intend to serve or demonstrate
that they have been impactful in the community they intend to serve.
COMMUNITY REINVESTMENT PLAN REPORT 75
The Poverty Reduction Work Group (PRWG) proposed improving the integration of behavioral health in early
learning settings and K-12. In addition, the PRWG recommended peer counseling and mindfulness programs
and increasing educational programming to decrease cultural stigma around mental health and improve
access to appropriate after-school care and programming.
Program details
“This [culturally responsive community healer] initiative is extremely exciting. Looking forward to helping
move the needle toward erasing systemic constructs that hinder Black and brown communities. With that
said, focusing on innovative and culturally inclusive youth employment is an excellent approach. Providing
safe spaces for underserved youth to be trained in careers that are difficult to navigate and in high
demand creates a win-win scenario for the community and local families. The idea of building a robust
pipeline of talent where healing is integrated is much needed. Also, the current economy is stagnated
across multiple industries. Let's prepare these youth to fill in some of these gaps in occupations that are
essential for society to function. Whether it's law, education, research, digital media, and/or
communication. Sustainability and capacity building are vital.” Black woman, small business owner,
Western Washington resident
During the development of the Community Reinvestment Plan, communities also offered structural
recommendations to address violence prevention and intervention to address the systems that are actively
harming them:
• Require anti-racism, anti-bias, and liberation-focused training for government workers, including those
who work in education, health care, housing, and economic development.
• Provide burn-out prevention to workers with lived experience, especially those who are supervised by
people who do not have lived experience. Burnout prevention includes eliminating pay inequities,
revising overly-rigid or shortened timelines for community engagement, eliminating inequities in paid
time off, providing appropriate accommodations and supports, supporting the agency and leadership of
staff with lived experience, and providing robust trauma-informed and culturally-specific mentorship
and support.
• Shifting decision-making power into community hands so that urgent needs can be addressed quickly,
versus going through a drawn-out and lengthy bureaucratic process. Community members shared
stories of how community solutions could address urgent issues more quickly, but that resolution was
delayed due to government processes that were created decades ago, before the internet and
information infrastructure existed to quickly identify what the needs are.
COMMUNITY REINVESTMENT PLAN REPORT 76
Area 5: Reentry Services
The Legislature identified reentry services as one program area to focus Community Reinvestment funding,
specifically focusing on "Reentry services to facilitate successful transitions for persons formerly incarcerated
in an adult correctional facility or juvenile residential facility in Washington."
The Washington Legislature created the Statewide Reentry Council in 2016 to "develop collaborative and
cooperative relationships between the criminal justice system, victims and their families, impacted individuals
and their families, and service providers, with the purpose of improving public safety and outcomes for people
reentering the community from incarceration." (43.380 RCW). The Reentry Council is required to submit a
report to the governor and Legislature every two years. The 2020 report outlines early lessons learned during
the COVID-19 pandemic, summarizes the ongoing racial disparities in Washington's criminal legal system,
provides recommendations for improving reentry, and summarizes council activities and progress. The report
concludes:
Systemic racism and racial disparities persist in Washington's criminal legal system, negatively impacting
Black, Indigenous, and people of color individuals, families, and communities and perpetuating
intergenerational trauma and poverty.
Access to safe and affordable housing remains a primary barrier to successful reentry.
COVID-19 is especially hazardous and potentially deadly for incarcerated people and people exiting prisons
and jails without proper resources.
Successful reentry requires individualized planning that includes safe and affordable housing, strong
community support, access to essential technology, and training on using the technology.
The Council identified dozens of reentry-related areas that need improvement. However, the Council decided to
focus its report on a narrow set of impactful recommendations:
End housing discrimination and homelessness following reentry
Center community and family, expand technology, and provide comprehensive, individualized reentry plans
Address systemic racial disparities by reducing prison and jail populations
Expanded Reentry Program
Program Name Investment Economic Benefit Goal:
Expanded Reentry Program $12 million N/A
Commerce's existing Reentry Grant Program provides reentry services for justice-involved individuals who
recently exited or are in the process of exiting incarceration in Washington jails or prisons, within the past 24
months. This program, facilitated by community-based organizations, focuses on improving reentry processes by
providing comprehensive services in essential domains such as housing, employment services, education, legal
aid, transportation, family reunification, communication, and basic needs. The program sets ambitious goals to
connect individuals to services in at least five of the eight service domains. Through the provision of program
support, community-based resource referrals, and a focus on life stabilization, career readiness and employment,
the program aims to reduce recidivism among program participants and increase their self-sufficiency.
Outcomes:
• Number of successful transitions from incarceration
• Percentage of participants in educational or vocational programs
• Percentage of participants whom obtain employment
COMMUNITY REINVESTMENT PLAN REPORT 77
Program details
In 2021, the Washington State Legislature took action through a budget proviso to fund the Reentry Grant
Program for the state fiscal biennium from July 1, 2021, to June 30, 2023. In the proviso, the Legislature
directed Commerce “to administer a competitive grant program for grants to community-based programs to
provide reentry services for formerly incarcerated persons and supports to facilitate successful transitions to
the community."
Among other things, grant awards under this program can be used for housing, case management and
navigators, employment services, family reunification, and legal services to respond to collateral impacts on
reentry. At least 30% of the funding for the Reentry Grant Program is designated for programs delivering
services in rural counties. The collective service area for the projects funded under the first round of grants
includes 24 out of 39 Washington counties. In the first round, 10 organizations were funded in the first
program year (2021), and 14 programs were funded in the second year (2022). The CRP recommends
expanding the program and consideration of the following practices or approaches for successful reentry:
Expand work-based learning opportunities
Down payment assistance for vehicles and housing
Program evaluation (track recidivism, implementation, and communities of practices)
In addition, the HTFFSP recommends using a common practice to successfully track the recidivism of enrolled
participants. It is crucial for program providers to assess the percentage of participants convicted of a new
offense within a year following their release from incarceration. This recidivism tracking should continue until
the conclusion of the grant performance period. To ensure accurate tracking, as a condition of services
participants should be required to pre-authorize a background check to be conducted within 24 months of their
enrollment in the program.
Reflections from community members
As a result of conversations with community advisors, the role of reentry support has been integrated into
multiple recommendations in the CRP, including the requirement that all technical assistance (TA) providers
have training and support in reentry. This was to ensure that technical assistance providers were grounded in
the specific ways that structural racism and oppression have constrained the abilities of communities harmed
by the war on drugs to build wealth. The advisors also recommended that this investment be significant and
that the funding be prioritized for smaller By and For organizations, particularly organizations that had not
received their first $1 million revenue in funding.
Advisors spoke about the need to ensure grant programs were as accessible as possible, and that they all
included technical assistance and capacity building, especially those for reentry programs and services. This is
because many of the organizations they admired were staffed by leaders and employees with limited time and
resources. They worried about what it would look like to fund the Reentry Program without external TA
providers who could help them complete their applications.
The Black Collective Social and Legal Justice Committee made the following recommendations to foster
successful reentry and reduce recidivism rates. Incarceration can be a challenging and isolating experience,
with the path to reintegration into society often fraught with obstacles. There are three key areas of focus that
can help smooth this transition:
1) Community engagement: Community engagement is a crucial element in the reintegration process. One
innovative approach is through the establishment of community gardens, which serve multiple purposes.
Not only do they provide productive and therapeutic activities, they also foster a sense of community
COMMUNITY REINVESTMENT PLAN REPORT 78
connection. The simple act of gardening can bring people together, building relationships, and nurturing a
collective sense of belonging.
Another aspect of community engagement involves the development of culturally responsive programs.
These programs are designed to cater to the unique needs of justice-involved individuals from diverse
backgrounds. Additionally, community engagement efforts should focus on offering opportunities for
representation, particularly for Black individuals. This can be achieved through mentorship programs,
leadership roles and resource access, which collectively empower individuals and promote their successful
reintegration.
2) Family reunification: Family ties play a vital role in an individual's life post-incarceration. Strengthening
families through targeted programs can foster these relationships and provide a supportive environment
for those reentering society. These programs can include counseling services, parenting classes, and
reunification services, all aimed at rebuilding and maintaining strong family connections.
3) Community intervention: Community intervention involves multiple strategies, including pre-release
vocational training programs. These programs equip individuals with valuable skills, increasing their
employability and odds of successful reintegration. Transitional housing support is another crucial
intervention, providing housing units designed to ease the transition from incarceration back into society.
Collaboration with community-based organizations is also a valuable intervention strategy. Through
partnerships, these organizations can provide comprehensive support services and resources, including
access to financial resources to cover basic needs and court-imposed fines. Lastly, the power of peer
mentorship shouldn't be underestimated as a form of community intervention. Peer mentorship programs
empower individuals, promote positive behavior change, and provide practical advice from those who have
walked the same path.
The challenges faced by individuals during their transition from incarceration to society are significant but can
be mitigated through focused efforts in community engagement, family reunification, and community
intervention. By adopting strategies in these areas, we can create a supportive environment that promotes
successful reintegration and reduces recidivism.
COMMUNITY REINVESTMENT PLAN REPORT 79
Appendix B: Economic development approach
Below we explain how we come to each of the calculations of long-term economic benefit for each different
category of investment. The below graph tracks the benefit each year starting with the initial investment and
moving to 10 years after the initial investment date. The benefits are tracked in millions of dollars.
In the course of calculating these estimates, we erred on the conservative side. Therefore, is it completely
possible that these benefits represent a lower bound on the long-term economic benefits to communities and
the state at large.
Based on our conversations with community members, the plan allocates more funds to investment
opportunities than to one-time services. Many of the services listed in the plan should provide substantial
returns on investment throughout their two-year rollout and beyond. On the next page, a graph compares the
total amount of investments and services.
COMMUNITY REINVESTMENT PLAN REPORT 80
Capital Accelerator
Year Economic Benefit
Year 0 (Initial Investment) $17 million
Year 1 $25.5 million
Year 2 $51 million
Year 3 $54 million
Year 4 $57 million
Year 5 $61 million
Year 10 $87 million
We arrive at this number first by showing that the dollars invested in CDFIs will have a multiplier on the total
amount of liquidity generated. The coverage of both CDFIs and financial institutions should not hamper the
multiplicative effect of these funds. However, what could diminish the multiplier is the lack of engagement
from individuals in the financial sector. The traditional theory would predict a multiplier of about 10 times
based on the current required reserve ratio.45 Therefore, while traditional theory would predict a much larger
multiplier, we make a conservative estimate with our multiplier of 3 times the initial investment. We make such
a conservative estimate because the multiplier’s effect is partially based on engagement with the financial
system, and communities of color have a historical distrust of banks due to past maltreatment. We also
45 While there is some evidence that money multiplier works through different channels than fractional reserve banking, we believe that
there will still be a multiplier effect through expanding the level of loaning activity for CDFIs. Our team estimates that the multiplicative
effect of funds for CDFIs can be up to 12 times the initial amount. Thus, the 3x times we estimate is a conservative estimate. We expect
this will be about 6% of the total investment in this category which is about $1 million.
COMMUNITY REINVESTMENT PLAN REPORT 81
assume that some of the funds will have to be used for administrative costs. Rather than explicitly estimate
this cost, which we expect to be rather small relative to the level of investment, we make the multiplier smaller.
Assuming all the allocated dollars are loaned out over the first two years, we break the multiplier’s effect in
half. In subsequent years, we assume that the growth in economic benefit will come from equity increases in
housing through year five. We assume start-ups will begin to turn a modest profit of 5% in the fourth year after
the initial investments. We also assume that housing prices will continue to grow at the average pre-COVID
rate of 7% per year.46
Homeownership Capital Accelerator
Using our previous estimations of 7% increase in equity year over year we estimate that the initial $15 million
investment will become $29.5 million by year 10.
Asset Building Initiatives
We do not estimate the benefits of this portion of the program as this is merely a scaling effect. This will
increase the benefits of all other proposed provisions by increasing uptake and engagement.
Black, Latino and Indigenous-led Lending Agency Support
To calculate the benefits associated with this provision, we again assume a multiplier set at 3 times the initial
effect. This takes the initial investment of $15 million to $45 million by year 2.
While there will likely be other general equilibrium effects beyond this in the remaining years of the program,
we conservatively assume that the benefits will end here.
Blended Capital Enhancements
We use the similar style of equity scaling for housing to determine the benefits of this program. While not all
funds will be used on housing, the increases in housing equity represent a good means of thinking about how
the economic benefit will result from this portion of the proposal. The additional provisions in this allocation
should bring additional benefits that render the final calculations we present a lower bound on the benefits.
It is very likely however that the benefits of this policy will far exceed 7% per year. This portion of the funds is
to be used for a risk pool similar to the macroeconomic idea of a “lender of last resort.” A lender of last resort
fills the role of providing capital to firms in economically challenging times when there is little other capital
available. This program will seek to perform the "lender of last resort" role for individuals, rather than firms. We
believe this, coupled with other programs, can induce individuals to take financially responsible risks.
Individual Development Accounts
With the match savings account set up, this program will pay for itself. The initial $25 million will result in an
additional $25 million of match savings. If these savings earn 0.39% each year, this will result in almost an
additional $1 million. This is apart from any additional funds from baby bonds. While these benefits would fall
outside of our 10-year estimates, these bonds could lead to an additional $10,000 to families assuming each
bond is about $200 at its inception.47
46 https://ofm.wa.gov/washington-data-research/statewide-data/washington-trends/economic-trends/median-home -price
47 Universal Baby Bonds Reduce Black-White Wealth Inequality, Progressively Raise Net Worth of All Young Adults
COMMUNITY REINVESTMENT PLAN REPORT 82
Financial Coaching and Mentoring
Year Economic Benefit
Initial Investment -$15 million
Year 1 $10 million
Year 2 $10 million
Total $5 million
To calculate the benefit for this project, we assume that the increased funds will lead to an additional 45-50
coaches being hired. If these coaches help an additional 20 individuals each year for the two years of the
project, this will be an additional 2000 individuals. If each individual helped by this program obtains an asset
worth $10,000 on average.48 This would amount to a $5 million benefit ($20 million in new assets minus $15
million in the initial cost).
EcSA Career Accelerator Incentives
Year Economic Benefit
Initial Investment $15 million
Year 1 $12 million
Year 2 $12 million
Total $9 million
A parallel program in a different context showed that subsidized wage programs, coupled with additional job
trainings, can improve wages by about 20% in the first two years of the program.49 If we scale this increase as
10% per year for every individual and assume they earn the state minimum wage. This is an increase for each
individual of $6,000 per year (assuming full-time employment). Wage subsidies also should increase
employment as well.
Cannabis Business Grants (Social Equity)
Granting new cannabis licenses to BIPOC individuals could increase both business revenue for communities of
color and tax revenue.50 If we assume each cannabis business generates revenue of about $100,000 per year,
the addition of 10 new businesses will lead to additional revenue of $1 million dollars per year. This additional
revenue will both increase funds in communities and tax revenue.
Vacating Criminal Records and LFO Relief
Data from the Brennan Justice report shows that the average earnings loss from imprisonment can be up to
nearly $500,000 of lifetime earnings. This gap in earnings is about $7,000 per year relative to peers. For the
program to break even in its first year, it would only need to help about 300 individuals.51 We make a
conservative estimate that this policy will help about 1,000 individuals per year since not all released
individuals will immediately take up employment or remain in the state. This will lead to an additional $7
48 This assumes some individuals will be coached to obtain either houses or cars while other individuals will still be helped through debt
reduction and credit score repair, but will not purchase any assets in the first two years of the program.
49 https://www.nber.org/papers/w5679
50 https://502data.com/
51 However, the actual release numbers are about 24,000 per year in the state.
COMMUNITY REINVESTMENT PLAN REPORT 83
million per year in wages from formerly incarcerated individuals working an earning at their peer rates. Note
that this estimate is based on a labor force participation rate for released individuals of 4%. The additional
measures in the proposal should mean that this labor force participation rate is ultimately too low. Thus, any
programs that help increase employment for formerly incarcerated individuals presents a large opportunity.
For the program to break even, it would only need to help individuals keep pace with their peers in terms of
employment opportunities. This would also help individuals escape poverty since the average lifetime earnings
of formerly incarcerated individuals does not rise above the federal poverty threshold according to current
analysis.52
Violence Reduction
With the level of gun violence in the state rising since 2017, our estimates focus on this as the largest area for
the effect of these violence reduction policies. The most modest decrease of five fewer gun violence deaths
per year would result in an additional benefit of $55 million dollars per year.53 Despite this analysis, there is
truly no estimate large enough for the cost of human life.
What is also more difficult to estimate is the general equilibrium benefits that could arise from such a
program. Reductions in violence and associated programs will decrease trauma responses and empower
individuals to live healthier, more productive lives. Lower violence will also spur greater investment in
communities from both outside agents and individuals within communities. There is also a clear connection
between violence and discouraged economic activity. Thus, decreases in violence could further amplify the
economic benefits we see in other areas.
52 https://www.prisonpolicy.org/profiles/WA.html
53 Conservative estimates place the VSL at $11 million per year
COMMUNITY REINVESTMENT PLAN REPORT 84
Appendix C: Money multiplier methodology
1
The simple multiplier is where 𝑟 is the required reserve ratio, which is set by the Federal Reserve Board. This
𝑟
equation comes from the basic fractional reserve banking cycle.54 While there is academic evidence that the
multiplier is a real phenomenon, there is new evidence that calls into question the whether the required reserve
ratio affects the multiplier.55
Despite the “muddy” relationship between the money multiplier and the required reserve ratio, we still believe
that investments into CDFIs and other funders will have a multiplier effect. First, CDFIs and similar financial
institutions are more likely to be liquidity constrained than traditional banks. In other words, more traditional
banks tend to be larger and better financed which allows for more lending to the communities they serve. This
effect will likely be stronger for CDFIs and similar institutions because they will have the resources to expand
their footprint. Secondly, based on interviews from this research project with CDFI leadership, CDFIs leverage
new investments at a 10 or 12 to 1 ratio. Because CDFIs have a required reserve ratio of about 10% this would
1
predict a money multiplier of 10 times the initial investment. 10 = 10% . This seems commiserate with the
experiential evidence.
To resolve the tension between classical theory, new scholarship, and experiential evidence, we estimate a
conservative money multiplier of 3 times the initial investment. The goal and operation of CDFIs is not like that
of most banks in the U.S., so the evidence specific to their effectiveness should not be discounted. However, it
would be a mistake to overestimate the effectiveness of this multiplier since it is possible that such large
capital injections into CDFIs may not have the same effect as smaller injections. Therefore, we predict a
multiplier effect that is very modest and could even be a lower bound on the estimates of economic benefit
created by CDFIs.
Benefits of Economic Development for participants in economic development programs.
*Note: Investment: lending/loans/financial services. Service: Direct case management services.
54 This diagram is taken from https://altexploit.wordpress.com/2017/06/16/fractional-reserve-banking-an-attempt-at-demystifying/.
We cite the diagram to honor its creator. We remain agnostic on the creators’ explanations and opinions.
55 Several works such as Money, reserves, and the transmission of monetary policy: Does the money multiplier exist?
https://doi.org/10.1016/j.jmacro.2011.09.009 and Teaching the Linkage Between Banks and the Fed: R.I.P. Money Multiplier
https://research.stlouisfed.org/publications/page1-econ/2021/09/17/teaching-the-linkage-between-banks-and-the-fed-r-i-p-money-
multiplier suggest that the required reserve ratio does not affect the proliferation of liquidity in the economy.
COMMUNITY REINVESTMENT PLAN REPORT 85
Long-term investments compared to social service investments
Panel B of Figure 6, above, compares long-term investments to social services. In the dissemination of funds
for this project, we make the distinction between long-term investments and social services because certain
items represent investments in personal utility rather than more easily quantifiable investments in assets. We
present this distinction to show that most of the funds in the project will go directly to traceable asset
purchases and quantifiable economic benefits. We firmly believe that all services will increase economic
benefit through increasing personal, household, and community utility. Funds allocated to services could also
increase the Return On Investments (ROI), as well.
Calculations by Investment Type
We calculate the return on investments in a variety of ways. We assume that all funds that move through a
CDFI or similar financial institution56 will face a 3-times multiplier effect (see The Money Multiplier in Our
Estimates). Investments in housing are assumed to have a 7% year-over-year increase in their value. We use
experiential evidence from similar programs to estimate the effect of matched savings accounts and Baby
Bonds. It is possible that the estimates here are on the lower side, since all the bonds will not be cashed out by
the tenth year after the investment. We also do not estimate the longer-term impact that beginning adult life
with a nest egg for college, housing, or other uses will have on an individual’s future outcomes. We assume
that job training programs and vacating criminal records57 will lead to increased employment and increasing
wages. This is particularly true of the subsidized wages program, which will simultaneously help businesses
and individuals. Finally, the violence intervention and prevention program’s ROI comes from decreased
mortality. We estimate that the program will save lives and the ROI comes from the sum of the statistical value
of those lives. Despite these estimates, there can truly be no monetary value placed on human life.
56 We use CDFIs in these calculations because they have an existing body of research and practiced experience in the types of lending
in recommendations. Commerce does not endorse CDFIs over other types of financial institutions in the application process.
57 This increasing benefit comes from a recovery of what would have been lost wages for formerly incarcerated individuals. This lost
wages can be up to 50% relative to one’s peers.
COMMUNITY REINVESTMENT PLAN REPORT 86
Appendix D: Defining and evaluating "By and For"
The authorizing language in the budget (Section 128(134)) of Chapter 475, Laws of 2023 (SB 5187)) directs
that the Community Reinvestment Plan be developed in partnership with "by and for community organizations
as defined by the office of equity.” The statutory language creating the Community Reinvestment Account,
RCW 43.79.567(3), directs “The distribution of the grants under this section must be done in collaboration with
the governor's office of Indian affairs and "by and for community organizations" as defined by the department
of commerce and the office of equity.” In the budget provision, the Legislature further directs that "[n]onprofit,
faith-based, and grassroots organizations are [to be] prioritized for funding" in the Community Reinvestment
Plan.
In a number of cases, the Community Reinvestment Plan recommends focus on “by and for” organizations as
preferred beneficiaries from the Community Reinvestment grant programs either directly or as intermediaries.
By and For Definition
For purposes of the Community Reinvestment Plan development and fund distribution, the Office of Equity
adopted the "By and For" definition pioneered by 501 Commons.
“A By and For organization is a part of a community of people that see themselves as unique and defined by
the members’ identities, traditions, and values. A By and For organization is one where leadership and staff
belong to the same community they serve, promote, and work to preserve. By and For organizations build trust,
advocate, respond, and solve problems specific to community members. By and For organizations have roots
in their respective communities as change agents and providers of mitigating systems of community service.
They invest in and work with community members to improve their quality of life.”
A By and For organization is part of a community of people that see themselves as unique and defined by the
members’ identities, traditions, and values. A By and For organization is one where leadership and staff belong
to the same community they serve, promote, and work to preserve. By and For organizations build trust,
advocate, respond, and solve problems specific to community members. By and For organizations have roots
in their respective communities as change agents and providers of mitigating systems of community service.
They invest in and work with community members to improve their quality of life.
These organizations are operated by and for the communities they serve, with a primary mission of catering to
specific communities and being culturally based. They are directed and controlled by individuals from the
targeted population, embodying the community's central cultural values. The rationale behind engaging with
these organizations lies in promoting inclusivity, representation, and community empowerment. Government
agencies are encouraged to provide evidence of partnerships and endorsements from By and For
organizations to ensure authentic community involvement and better address the diverse needs of
marginalized communities. Given the disparities caused by the war on drugs, in developing and implementing
the Community Reinvestment Plan, priority will be given Black, Indigenous and Latino By and For organizations.
By and For Qualification
To qualify as By and For for purposes of the Community Reinvestment project, an organization must:
• Be part of, rooted in, and defined by the identity of the Black, Hispanic, and Indigenous community;
• Have leadership and staff who belong to the Black, Hispanic and Indigenous community; and
COMMUNITY REINVESTMENT PLAN REPORT 87
• Act as change agents in community and provide mitigating systems of community services.
Evaluation of By and For Engagement
Engagement of By and For organizations in the Community Reinvestment Plan implementation will be
measured by how a community has benefitted, such as the percentage of funding distributed to "By and For"
organizations from the overall award and the level of partnership during the project. Where applicable grant
program managers will:
• Measure the level of partnerships with “by and for” organizations;
• Track the percentage of funding distributed to “by and for” organizations; and
• Identify how the partnership has benefited the intended community.
Grant Scoring Criteria
In addition to other programmatic requirements to achieve the desired results, the following scoring criteria
will be included, as appropriate and practical, when selecting projects, individuals and organizations for
Community Reinvestment funding. Review the full Community Reinvestment Plan for details on scoring criteria
for each particular grant program.
• Evidence of partnership with Washington-based "by and for" organizations
• Endorsement of funding allocation from state "by and for" organizations or a body of people with lived
experience in Black, Hispanic and Indigenous communities in Washington
• Demonstrated ability to affect structural racism for the most impacted communities
• Demonstrated ability to address the mental and spiritual impact of the war on drugs
• Demonstrated ability to address community harm
• Evidence of strong organizational capacity
• Prior experience in focus area
• Demonstrated potential impact of the proposed project
• Alignment with the Community Reinvestment Plan
• Demonstrated ability to produce long-term economic benefits
• Description of a clear plan for accountability measures
• Description of a clear plan for tracking
• Description of a clear plan to center populations disproportionately impacted by the war on drugs,
including Black, Indigenous and Hispanic communities
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