Thurston County proposes $553,303 subrecipient agreement with Habitat for Humanity for low‑income heat‑pump program

Thurston County staff on Jan. 28 presented a draft subrecipient agreement that would allow the county to pass through up to $553,303 to South Puget Sound Habitat for Humanity to administer subsidized installations of heat pumps and heat‑pump water heaters for qualifying low‑ and moderate‑income households.

The agreement would cover a state grant of $472,263 and a potential federal grant of $81,040, the county’s mitigation senior program manager Rebecca Harvey said. “The maximum total amount payable by the county to Habitat is $553,303, which includes the state grant of 472 to 63 and, potentially a federal grant of $81,040 to be determined,” Harvey said. She also said Habitat will retain 12% of the state grant (“just under 57,000”) to cover operational costs, which Harvey characterized as an allowable grant cost.

Nut graf: The subrecipient agreement is one component of the Energize Thurston campaign, a regional program expanding earlier work in Olympia to help lower‑income households install heat‑pump systems. Harvey told commissioners the agreement builds on an interlocal agreement approved Jan. 21 with the cities of Lacey, Olympia, Tumwater and Tenino and on an RFP to select equipment installers.

According to Harvey, Habitat’s role would include outreach and participant recruitment, income verification, case management through project completion, contracting with installers on the household’s behalf and monthly reporting to jurisdictions. “They are involved all the way through the process for the homeowners,” she said.

Commissioners asked about audit and oversight of income verification. A commissioner asked whether “there’s clear language in there that allows the county auditor to look at, processes or spot check things, you know, for the income verification pieces,” noting past trouble with income verification. Harvey said she would check the contract language and that the county prosecutor’s office was reviewing the agreement. Assistant County Manager Jennifer Walker said staff would coordinate with the prosecutor’s office and involve Brandon Weber on contract protections.

Staff confirmed the program covers retrofits only, not new construction. Harvey said installers interviewed for the program are already building new homes with heat pumps to meet state building energy codes, but the subrecipient agreement itself is intended for retrofits in existing homes.

Ending: Staff said they will follow up with the prosecutor’s office on contract audit language and return final contract language to the board as the agreement is finalized.