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County project: Apple Health and Homes contract, permits and construction timeline discussed

3088040 · April 4, 2025
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Summary

Committee heard a construction and contract update for a permanent supportive housing project: Commerce contract expected to be executed in April, plumbing permit submitted, oil tank resolved, transformer lead times and HVAC cost increases noted; staff estimated construction and ribbon-cutting next spring.

Clallam County staff updated the committee on a permanent supportive housing project that uses Apple Health and Homes funding and other state sources, reporting progress on contracting, permits and construction sequencing.

Staff said they expect a fully executed contract with the state Department of Commerce by April 18 and that plumbing permit applications have been submitted to the city. Project managers reported resolved site issues (an intact oil tank), stem walls and footings in place and an elevator pit dug. They also said they had ordered HVAC systems and noted that recent changes to refrigerant requirements will increase HVAC costs by an estimated 15 to 20 percent.

Why it matters: the project includes Medicaid‑tied supportive housing funding (Apple Health and Homes) and staff said federal rules tied to Medicaid programs make timely contracting important. The county’s faster contract execution, staff said, reduces the risk that federal or state funding conditions would change before construction begins.

Details and schedule: staff reported the plumbing permit is in with the city and that Commerce’s schedule estimated construction with Danlos Construction beginning May 1 of next year, with a spring ribbon cutting projected the following year. The project team is coordinating with the city to procure a transformer (lead times of roughly 10 months for transformers were cited) and working through procurement and permit steps for HVAC, utility hookups and foundation work.

Funding and intergovernmental coordination: staff told the committee the county and city waived additional deed requirements so the Department of Commerce’s 40‑year commitment can be recorded and thereby streamline contract execution. Staff also reported concern that some Apple Health and Homes dollars are tied to federal waiver programs; timely contracting and execution are intended to reduce the risk that federal changes could affect those funds.

Ending: Staff said construction activity will accelerate once final permits and long‑lead equipment deliveries are coordinated; no formal vote was taken. The committee thanked city and county partners for expedited permitting and said it will monitor delivery timelines and contract milestones.