HB 2647

H-3096.1
  HOUSE BILL 2647
State of Washington  69th Legislature      2026 Regular Session
By Representatives Graham, Couture, Schmidt, and Jacobsen
Read first time 01/23/26.   Referred to Committee on Housing.
1      AN ACT Relating to establishing accountability requirements for
2  homeless housing grant programs; and adding a new section to chapter
3  43.185C RCW.
4  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
5     NEW SECTION. Sec. 1. A new section is added to chapter 43.185C
6 RCW to read as follows:
7     (1) By December 1, 2027, and by each following December 1st, the
8 department shall require grantees and subgrantees that receive
9 funding through any of the homeless housing and assistance grant
10 programs administered by the department under this chapter to submit
11 annual plans to the department specifying their goals and targets
12 over the next calendar year related to:
13     (a) The number of people that the grantee or subgrantee forecasts
14 will be helped out of homelessness with the grant money over the next
15 calendar year; and
16     (b) How much money the grantee or subgrantee anticipates spending
17 per individual to help an individual move into housing over the next
18 calendar year.
19     (2) The state auditor shall conduct an annual performance audit
20 of all homeless housing and assistance grant programs administered by
21 the department under this chapter. As part of the audit, the state
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1 auditor shall consider whether grantees and subgrantees are spending
2 grant funds on authorized purposes, the amount that grantees and
3 subgrantees spend on providing authorized services compared to the
4 amount that grantees and subgrantees spend on administrative costs,
5 whether grantees and subgrantees are meeting the goals and targets
6 specified in their annual plans, whether grantees and subgrantees are
7 in compliance with this section, and the department's processes and
8 procedures for oversight of grantees and subgrantees. As appropriate,
9 the state auditor shall make recommendations for improving the
10 department's processes and procedures for oversight of grantees and
11 subgrantees.
12     (3)(a) By December 1, 2027, the state auditor, in coordination
13 with the department, shall determine what information is required
14 from grantees and subgrantees to conduct the audit. This information
15 must include, at minimum:
16     (i) Documentation showing what each grantee and subgrantee spent
17 the grant money on, including receipts for purchases; and
18     (ii) Data and metrics on how many people each grantee and
19 subgrantee have helped out of homelessness, including how much money
20 each grantee and subgrantee spent per individual to help an
21 individual move into housing and the amount of time that each
22 individual remained housed.
23     (b) The department shall require grantees and subgrantees to
24 submit the required information to the department and the state
25 auditor by June 1, 2028, and every six months thereafter.
26     (4) By December 1, 2028, and by each following December 1st, and
27 in compliance with RCW 43.01.036, the state auditor shall submit an
28 annual report on the audit's findings and recommendations to the
29 appropriate committees of the legislature.
30     (5) A grantee or subgrantee is not eligible to apply for or
31 participate in a grant program administered by the department under
32 this chapter if:
33     (a) The grantee or subgrantee does not submit an annual plan
34 required in subsection (1) of this section by the appropriate
35 deadlines;
36     (b) The grantee or subgrantee does not provide the information
37 required in subsection (3) of this section by the appropriate
38 deadlines;
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1     (c) An audit's findings show that the grantee or subgrantee has
2 spent   grant   money   on    unauthorized   purposes   or   otherwise
3 misappropriated funds; or
4     (d) A grantee or subgrantee is found not to be in compliance with
5 this section by an audit under subsection (4) of this section.
6     (6) The department shall enforce this section by entering into an
7 appropriate agreement with each grantee to prevent a grantee or
8 subgrantee from receiving funding through any of the homeless housing
9 and assistance grant programs administered by the department under
10 this chapter if the grantee or subgrantee fails to meet the
11 requirements in this section. All requirements that apply to grantees
12 are passed on to subgrantees. A grantee is responsible for monitoring
13 its subgrantees for compliance with this section. A grantee is not in
14 compliance with this section if any of its subgrantees are not in
15 compliance with this section.
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