The Legislature approval of ESSB 5187 on April 23, 2023, provided specific direction to allocate $200,000,000 exclusively for the department's administration of grants. These grants must be distributed in accordance with the recommendations outlined in the Community Reinvestment Plan developed.
The Loan Guarantee Fund is a pool of resources that provides funding and loan loss reserve to Community Development Financial Institutions (CDFIs), local municipalities, and non-profit organizations in Washington State. These lenders are able to leverage the pool for up to 10 times the fund amount (i.e. $15m can leverage $150m 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 Loan Guarantee Fund should maintain the following Investment breakdown:
The CDFI Homeownership Mortgage Capital grant program would provide loan capital to CDFIs for increased leverage through Fannie Mae, Freddie Mac, and others to help reduce the buyer’s monthly mortgage payment and/or increase purchasing power. This may include options like secondary mortgages to eliminate mortgage insurances. This fund will be a significant investment to a CDFI to leverage additional secondary market mortgages for an exponential impact on home purchases. The aim of the funding is to provide access to lending to Black, Hispanic, and Indigenous communities disproportionately impacted by structural racism; and those impacted by the racial, social and economic disparities caused by the war on drugs
The Growing Family IDAs is a program aimed at helping Black, Hispanic, and Indigenous communities disproportionately impacted by structural racism; and those impacted by the racial, social and economic disparities caused by the war on drugs, to 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. In order 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. Additionally, families will receive $4,000 baby bonds for each child to help families save for their children's long-term financial needs, such as education or purchasing a first home. The funds from the baby bonds are locked until the child reaches a specified age, usually 18 or 21, and the interest earned is tax-free. The combination of the Growing Family IDAs and Bonds has the potential to have a significant positive impact on the financial well-being of impacted individuals and communities, promoting economic mobility and stability.
Blended Capital Approach is a program under the CRP that assists 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 TA 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 IDA, 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. The program is aimed at supporting Black, Hispanic, and Indigenous communities disproportionately impacted by structural racism; and those impacted by the racial, social and economic disparities caused by the war on drugs.
The Financial Coaching and TA Program will provide $10 million in grants for community organizations and financial institutions to hire 45-50 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 CRF recommendations, including home ownership, startup/scaleup lending, construction loans, DADU loans, and debt remediation. All loans, grants, and matched savings will be accessible to beneficiaries through lender/TA integration.
The Workforce Job Seeker Incentive Fund is a grant program designed to support individuals as they work towards economic security and stability, with a focus on justice-involved individuals (and their families) who are from Black, Indigenous, and Hispanic communities disproportionately impacted by structural racism, and young adults; and those 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 BIPOC communities and equity. Priority will be given to individuals above 200% of FPL, but 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 CRF teams. Local Workforce Development Boards will conduct outreach and help interested EcSA participants enroll into matched savings programs, once available.
The Workforce Accelerator is a grant program that aims to support Black, Indigenous, and Hispanic businesses in participating in the Workforce Innovation and Opportunity Act (WIOA) while also 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 Hispanic 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, and is aimed at supporting Black, Hispanic, and Indigenous communities disproportionately impacted by structural racism; and those impacted by the racial, social and economic disparities caused by the war on drugs.
The Cannabis Equity Grant Program is a financial assistance initiative aimed at supporting social equity qualified license holders to provide funding for Black, Hispanic, and Indigenous communities disproportionately impacted by structural racism; and those 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 5 of the last 10 years or has been convicted of a misdemeanor marijuana offense or has 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 Equity Grant Program is to help prioritize these businesses in the state to develop and succeed by providing financial and technical support.
The BIPOC Asset Building Initiatives Grant will provide funding to groups of organizations and individuals that come together to promote and advance policies and programs that help Black, Hispanic, and Indigenous communities disproportionately impacted by structural racism; and those 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 (IDAs).
Since the office was launched, OFSVP has distributed grant funds in communities throughout Washington state, supporting local efforts to prevent and intervene in firearm violence. Among other things, we have learned 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. We have also learned that violence intervention and prevention efforts work best when we partner with law enforcement and other system partners. The OFSVP grant programs respond to these lessons learned, respecting the unique needs of our 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.
The Youth Sports Capacity Program is a capacity grant program for community sports and activity teams up to $25,000. This program would cover the 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, particularly the Black community. This program is aimed at supporting Black, Hispanic, and Indigenous communities disproportionately impacted by structural racism; and those impacted by the racial, social and economic disparities caused by the war on drugs.
The Barber/Beauty Shop Peer Navigation Program is a capacity grant program for Health Departments to provide outreach and paid training and certify barbers to provide life coaching, violence prevention, mental health, and mentorship to customers during their conversations in barbershops seeks to address the need for community-based support and resources for individuals. The barbershop and beauty 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. This program is aimed at supporting Black, Hispanic, and Indigenous communities disproportionately impacted by structural racism; and those impacted by the racial, social and economic disparities caused by the war on drugs.
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 Reentry Grant Program provides reentry services for justice-involved individuals who have 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 for adults and youth 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. This program is aimed at supporting Black, Hispanic, and Indigenous communities disproportionately impacted by structural racism; and those impacted by the racial, social and economic disparities caused by the war on drugs.
The Legal representation grant program aims to address the needs of 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. This program is aimed at supporting Black, Hispanic, and Indigenous communities disproportionately impacted by structural racism; and those impacted by the racial, social and economic disparities caused by the war on drugs. The program ensures transparency and accountability through the involvement of a Community Advisory Board. It consists of three key components:
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 will 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. OCLA proposes to develop an automatic criminal record sealing software to expunge criminal records and remit legal financial obligations (LFOs). The project involves creating a tool that automates the expungement of criminal records and LFO remission processes and is accessible in all 37 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 communities affected by the War on Drugs. This program is aimed at supporting Black, Hispanic, and Indigenous communities disproportionately impacted by structural racism; and those impacted by the racial, social and economic disparities caused by the war on drugs.
You and your communities provide immediate feedback
The Community Reinvestment Plan showcased on its wa-reinvest.com website with full detail, and in this short video. I would love to see you share it across your teams and constituents, focusing on having you join us for Friday Office Hours, or feedback via Survey.
Special opportunity to collaborate on solutions
At this time we have a series of meetings where our lead consultant firm, the Harriet Tubman Foundation for Safe Passage is looking to share early recommendations from community members and turn them into programmatic solutions with the $200 million we have over the next two years. That could be existing programs or new ones, and we’d love your collaboration. Please see the invitation below, which includes a zoom link, and an option to download the calendar invitations.
You may notice one event named “enabling conditions,” and this will be an opportunity to discuss general program practices that have come up from conversations that community organizations have had about systemic changes that may make it easier for the CRP to work well. Pieces that are similar to the existing body of work of the Capital Equity Report.
Early Recommendations Review Meetings
CRP Fund Economic Development Recommendation Review (pptx)Download
CRP Fund Housing Recommendations Review (pptx)Download
CRP Fund Legal Assistance Recommendation Review (pptx)Download
CRP Fund Re Entry Recommendation Review (pptx)Download
CRP Fund Violence Prevention and Intervention Recommendation Review (pptx)Download