The Behavioral Health Facilities Program, administered by the Washington State Department of Commerce, provides funding to establish new behavioral health service capacity within communities. The program funds the acquisition, renovation, and new construction of facilities that support behavioral health services. Grants are available to eligible organizations to expand service capacity and address gaps in community-based behavioral health services. Funding is provided through state appropriations and supports various facility types, including acute care hospitals, psychiatric hospitals, residential treatment centers, behavioral health agencies, and outpatient service facilities.

The program funds facilities that provide critical behavioral health services, including crisis stabilization, evaluation and treatment, intensive behavioral health treatment, peer respite, opioid treatment, and both inpatient and outpatient intervention services. These services must be licensed and certified by either the Department of Health or the Department of Social and Health Services. Facilities must comply with specific requirements such as meeting environmental and safety regulations, ensuring accessibility, and demonstrating financial stability to maintain services throughout the grant commitment period.

Applicants must adhere to several conditions to receive funding, including compliance with Governor’s Executive Order 21-02, which mandates protection of historical and cultural resources. Facilities receiving funding must also comply with prevailing wage laws, public works statutes, and apprenticeship requirements if applicable. Additionally, grant recipients must obtain and maintain appropriate licenses, certifications, and service contracts as required by Washington State regulatory agencies. Projects involving renovation or new construction over 5,000 square feet must meet Leadership in Energy and Environmental Design (LEED) Silver standards.

Funding is awarded through competitive and noncompetitive grants, as well as direct legislative appropriations. Competitive grants are issued based on demonstrated need, project readiness, and alignment with program priorities. Noncompetitive grants and direct appropriations are determined by the Washington State Legislature. All grantees must commit to serving publicly funded individuals for a specified commitment period, typically 10 to 15 years, depending on the funding cycle. If a facility funded by the grant is sold, transferred, or repurposed, prior approval from the Department of Commerce is required.

Applicants must submit a complete application that includes project details, funding commitments, anticipated timelines, and a sustainability plan for maintaining operations beyond the grant period. Funding is provided on a reimbursement basis, meaning grantees must incur and document expenses before receiving payment. Certain expenses, such as predevelopment, acquisition, and capital improvements, are eligible for funding, while administrative costs and operational expenses are not covered. The Department of Commerce may withhold up to 10% of awarded funds until the facility receives a Certificate of Occupancy.

The grant application process includes an initial review of project eligibility, scoring based on project readiness and community impact, and an evaluation of financial feasibility. Selected applicants may be required to submit additional documentation and participate in compliance monitoring. Awarded projects are expected to be operational within a specified timeframe to ensure timely implementation of behavioral health services. For more information, applicants can contact the Behavioral Health Facilities Program at BHFInquiry@commerce.wa.gov.