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County recommends repurposing $200,000 in ARPA funds after Peninsula Housing Authority project stalls; Opportunity Fund to back short‑term loans
Summary
Clallam County staff proposed repurposing $200,000 of ARPA funds previously committed to a housing authority debt reduction after the contractor’s replacement project could not meet US Treasury rules. Commissioners were also briefed on Opportunity Fund projections and a planned short‑term working capital loan to support local stormwater work.
Clallam County staff told commissioners that federal restrictions on repurposing deobligated ARPA awards left the county a narrow set of compliant options and recommended repurposing $200,000 toward personnel costs rather than returning the funds to the U.S. Treasury.
Rebecca, a staff member, said the county had committed $200,000 in ARPA to the Peninsula Housing Authority for Oxbow Apartments debt reduction; the housing authority later notified the county the proposed debt reduction would not occur. "US Treasury gives us very little flexibility," Rebecca said, "unless you can identify a 100% identical project with the same economic impact. The safest path forward is to repurpose those funds to paying for personnel costs of positions that existed and were filled as of 12/31/2024." The staff recommendation was intended to avoid the loss of the awarded funds under Treasury guidance.
On the Opportunity Fund, staff described projected revenue of approximately $3,072,953 for 2026 and noted a planned $1,000,000 short‑term working capital loan to CloudBay CQ (identified in the meeting as a sewer/stormwater project) that staff expects to be paid back within the year. "It's kind of an in‑and‑out thing with the Opportunity Fund," a staff presenter said, describing the loan as temporary working capital to support expected construction next year.
Commissioners discussed the timing and use of Opportunity Fund dollars for economic development, including a potential increase to support the local economic development council and whether funds could be used to support lobbying representation through the North Olympic Legislative Alliance. Staff cautioned about Treasury rules and about double‑counting costs across grant sources.
The board asked staff to confirm eligible uses, return with precise language to repurpose the ARPA funds if accepted, and report back on the timing of Opportunity Fund loans and related carryovers expected in 2026.
