SB 6205 — Grant distribution

Summary

Increasing accountability for the distribution of grants for economically disadvantaged people.

Bill Text

Compared against the Revised Code of Washington as published AI-generated reading aid — verify against the official bill.

This bill amends 3 section(s) of the Revised Code of Washington: RCW 43.79.567; RCW 43.185A.140; RCW 43.181.040.

• RCW 43.79.567

  For the 2025-2027 fiscal biennium, "by and for community organizations" include, but are not limited to, those operated by and for Black, Latino, Native American, Asian, Native Hawaiian, and Pacific Islander communities → deposit into the account. Moneys in the account may be spent only after appropriation. (2) Expenditures from the account may be used by the department of commerce for: (a) Economic development, which includes addressing wealth disparities to promote asset building such as homeownership 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; (b) Civil and criminal legal assistance to provide postconviction relief and case assistance, including the expungement of criminal records and vacation of criminal convictions; (c) Community-based violence intervention and prevention services, which may include after-school programs focused on providing education and mentorship to youths; (d) Reentry services to facilitate successful transitions for persons formerly incarcerated in an adult correctional facility or juvenile residential facility in Washington; and (e) Beginning July 1, 2025, agricultural and economic support and services available to historically marginalized communities. (3) The distribution of the grants under this section must be done in collaboration with "by and for community organizations" as defined by the department of commerce and the office of equity. An officer or family member of an officer of a "by and for community organization" must not, directly or indirectly, have a beneficial interest in, or receive any compensation, gratuity, or reward in connection with, a grant distributed under this section. (4) Priority must be given to grant recipients who demonstrate greater need based on: (a) Income; (b) Family size; (c) Cost, condition, and energy efficiency of available residential housing; (d) Availability of decent, safe, and sanitary housing; (e) Age or infirmity; and (f) Applicable federal, state, and local requirements. (5) The department of commerce must evaluate the distribution of the grants under this section biannually. The evaluation must contain the eligibility requirements, the number of participants and their corresponding eligibility categories, and metrics for determining success and success rates. These evaluations must be made available to the legislature upon request.

  amended

• RCW 43.185A.140

  , → read as follows: (1) The department must use moneys from the housing trust fund and other legislative appropriations to finance in whole or in part any loan or grant projects that will provide affordable housing for persons and families with special housing needs and who are low- income households. (2) At least thirty percent of these moneys used in any given funding cycle must be for the benefit of projects located in rural areas of the state as defined by the department. If the department determines that it has not received an adequate number of suitable applications for rural projects during any given funding cycle, the department may allocate unused moneys for projects in nonrural areas of the state. (3)(a) The department must prioritize allocating at least, but not limited to, 10 percent of these moneys used in any given funding cycle to organizations that serve and are substantially governed by individuals disproportionately impacted by homelessness including, but not limited to, black, indigenous, and other people of color and, lesbian, gay, bisexual, queer, transgender, and other gender-diverse individuals. (b) An officer or family member of an officer of an organization under this subsection must not, directly or indirectly, have a beneficial interest in, or receive any compensation, gratuity, or reward in connection with, loans or grant projects under this section. (c) The department of commerce must evaluate the distribution of the loan or grant projects under this subsection biannually. The evaluation must contain the eligibility requirements, the number of participants and their corresponding eligibility categories, and metrics for determining success and success rates. These evaluations must be made available to the legislature upon request. preservation funding, as provided in RCW 43.185A.180, and preconstruction technical assistance as provided in RCW 43.185A.170. (b) Administrative costs associated with compliance and monitoring activities of the department may not exceed four-tenths of one percent annually of the contracted amount of state investment in affordable housing programs.

  amended

• RCW 43.181.040

  read as follows: (1) As part of the covenant homeownership program, the department shall contract with the commission to design, develop, implement, and evaluate one or more special purpose credit programs to reduce racial disparities in homeownership in the state by providing down payment and closing cost assistance. The contract must authorize the commission to use the contract funding as follows: (a) The contract must authorize the commission to use up to one percent of the contract funding for costs related to administering the program including, but not limited to, costs related to completing a covenant homeownership program study required under RCW 43.181.030, and other administrative, data collection, and reporting costs; (b) The contract must authorize the commission to use up to one percent of the contract funding to provide targeted education, homeownership counseling, and outreach about special purpose credit programs created under this section to black, indigenous, and people of color and other historically marginalized communities in Washington state, including outreach to relevant affinity groups for mortgage lenders; and (c)(i) The contract must authorize the commission to use the remainder of the contract funding to provide down payment and closing cost assistance to program participants. This portion of the contract funding may not be used to provide any type of assistance other than down payment and closing cost assistance. (ii) An officer or family member of an officer of an organization under this subsection must not, directly or indirectly, have a beneficial interest in, or receive any compensation, gratuity, or reward in connection with projects under this section. --- END ---

  amended

Action History

1. January 19, 2026

   First reading, referred to Housing.

Sponsors

• (Braun) · Primary

Subjects