Direct Appropriations Status Report — Pursuant to Laws of 2023, Chapter 474 (SB 5200, Section 6012) (January 15, 2025)
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Summary
The 2024 Direct Appropriations Status Report, a Washington State Department of Commerce report to the Legislature dated January 15, 2025, prepared under Laws of 2023, Chapter 474 (SB 5200, Section 6012). It reviews the 191 projects in the 2018 Local and Community Projects list and reports that 156 of 191 projects were completed with an investment of approximately $98 million, while 30 additional projects remain in progress. It finds that three projects were not under contract as of Dec. 31, 2024 and are expected to lapse. A background section sets out the usual conditions on these capital appropriations, including reimbursement-only funding and ten-year site control. Table 1 lists the lapsed projects, totaling $1,603,000, including the Homesight Multicultural Community Center at $1,300,000.
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“Direct Appropriations Status Report — Pursuant to Laws of 2023, Chapter 474 (SB 5200, Section 6012) (January 15, 2025).”
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Direct Appropriations Status
Report
Pursuant to Laws of 2023, Chapter 474 (SB 5200, Section 6012)
January 15, 2025
Report to the Legislature
LOCAL AND COMMUMITY
PROJECTS Interim Director Diane Klontz
v3.5.1
Acknowledgments
Washington State Department of Commerce
Mark Barkley, Assistant Director, Local Government
Division
Buck Lucas, Policy Communication Manager, Local
Government Division
Mike Kendall, Manager, Capital Programs
Addeline Craig, Managing Director, Community
Capital Facilities
360-688-0041
addeline.craig@commerce.wa.gov
Community Capital Facilities
1011 Plum St. SE
P.O. Box 42525
Olympia, WA 98504-2525
www.commerce.wa.gov
For people with disabilities, this report is available on
request in other formats. To submit a request, please
call 7-1-1 and ask to be connected to 360-725-4000.
2024 DIRECT APPROPRIATIONS STATUS REPORT 2
Table of contents
Introduction ....................................................................................................................................................4
Background ....................................................................................................................................................5
Identified projects ...........................................................................................................................................6
2024 DIRECT APPROPRIATIONS STATUS REPORT 3
Introduction
In 2023, the Legislature directed the Department of Commerce to identify any projects that are not under
contract by end of 2024, and which will lapse from the list of 2018 Local and Community Projects. Specifically:
(1) The reappropriation is subject to the provisions of section 1052, chapter 296, Laws of 2022.
(2) The reappropriation for any project for which the department has not executed a contract by
December 31, 2024, shall lapse. The department shall provide a list of lapsed projects to the legislative
fiscal committees no later than January 15, 2025.
Findings
Of the 191 projects, 82% have been completed (156 of 191 projects) with an investment of approximately
$98 million in communities statewide. As of this report, 30 additional projects remain in progress.
Only three projects (1.5% of all projects) are not under contract as of Dec. 31, 2024, and are expected to
lapse (Table 1).
Direct appropriations come in varying degrees of project readiness, and every project is subject to
constraints, including scope changes, supply chain challenges and economic realities.
Commerce continues to work with all recipients to strengthen communities through state capital
investments by:
• Providing robust technical assistance through contract negotiation
• Providing additional notification of contract end dates
• Collaborating with legislative staff on requests to change project scopes as project plans evolve
In recent years, Commerce launched a community resource toolkit for grant recipients navigating the
contracting process. On the Community Capital Facilities webpage, awardees can find guidance for
common topics such as proving site control, documenting insurance needs, and consulting tribes. This is
one of many ways Commerce strengthens communities' ability to meet funding requirements and deliver
public benefit to their residents.
2024 DIRECT APPROPRIATIONS STATUS REPORT 4
Background
Every session, the Legislature considers community capital projects to include in the state's capital budget.
The Office of Financial Management defines capital projects as "a broad range of construction, renovation,
rehabilitation and acquisition."
Commerce stewards many direct appropriations, such as lists of Local and Community Projects. Commerce
administered these appropriations as reimbursement-style grants to local governments and nonprofits, to help
them build and improve community facilities. This relationship requires the department to maintain the
integrity of significant state investments, in alignment with stated requirements and appropriate risk
management procedures.
The precise language within the capital budget may vary over biennia, but these appropriations are generally
subject to the following conditions and limitations.
1) Except as directed otherwise prior to the effective date of this section, the department may not expend
the appropriation in this section unless and until the non-state share of project costs have been either
expended, or firmly committed, or both, in an amount sufficient to complete the project or a distinct phase
of the project that is useable to the public for the purpose intended by the legislature. This requirement
does not apply to projects where a share of the appropriation is released for design costs only.
2) Prior to receiving funds, project recipients must demonstrate that the project site is under control for a
minimum of ten years, either through ownership or a long-term lease. This requirement does not apply to
appropriations for pre-construction activities or appropriations whose sole purpose is to purchase real
property that does not include a construction or renovation component.
(3) Projects funded in this section may be required to comply with Washington's high performance building
standards as required under chapter 39.35D RCW.
(4) Project funds are available on a reimbursement basis only, and shall not be advanced under any
circumstances.
(5) Projects funded in this section must be held by the recipient for a minimum of ten years and used for
the same purpose or purposes intended by the legislature as required in RCW 43.63A.125(6).
(6) Projects funded in this section, including those that are owned and operated by nonprofit organizations,
are generally required to pay state prevailing wages.
2024 DIRECT APPROPRIATIONS STATUS REPORT 5
Identified projects
From the 191 projects that received direct appropriations funding within the 2018 Local and Community
Projects (40000005), only three did not execute a contract before Dec. 31, 2024 (Table 1).
Table 1: Lapsed 2018 Local and Community Projects
Grantee Project Grant amount
Homesight Multicultural Community Center $1,300,000
Seattle Indian Health Board Seattle Indian Health Board $200,000
City of Sumner Daffodil Heritage Float Barn $103,000
Total $1,603,000
2024 DIRECT APPROPRIATIONS STATUS REPORT 6
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