(The Center Square) – The Washington state Senate has passed a House bill creating greater oversight over a state program offering various forms of financial assistance to certain ethnic groups following reports of misuse of those funds by nonprofits.
However, a whistleblower says further scrutiny is necessary.
The Community Reinvestment Program provides taxpayer dollars to minorities for homeownership through state Department of Commerce grants to nonprofits such as the Seattle Metropolitan Urban League and the Tacoma Urban League. The Center Square has previously reported that Corey Orvold, who volunteered with the Tacoma Urban League for almost a decade, stepped down from her position last year after questioning the use of grant funds by board members that allegedly went toward family members. The allegations resulted in investigations into the Tacoma Urban League, whose CEO was placed on administrative leave.
House Bill 2523 requires the Office of Equity as well as the Department of Commerce to review and update the CRP plan every five years requiring the distribution of funds. It also creates a work group that would develop a transition plan for joint administration of the CRP by the Office of Equity and Commerce. The State Institute for Public Policy would also study the distribution and use of CRP funds.
Prior to the bill’s passage in the House, it was amended to include new provisions. One of them prohibits an officer of an organization, a family member of an officer, or a business or nonprofit owned or managed by an officer from receiving any compensation from an organization that receives a grant from Commerce through the Community Reinvestment Account.
In an interview with The Center Square, Orvold said that while she was encouraged to see the bill pass, “there could be loopholes that could be exploited by the same bad apples, and what I mean by that is if you’re no longer allowed to give your friends and family money. But we’re friends, right? You can come to my organization. I’ll take care of your friends and family.”
“A lot of them have gone out and spent a lot of money that created a new lifestyle for themselves,” she added. “Once the money dries up and they, they no longer have funds coming in, it’s going to be. Uh oh, what do we do now? That’s why I’m thinking that there’s still some working that needs to be done.”
The bill first cleared the state House in February in a 88-9 vote. It was passed by the Senate on Wednesday in a 45-3 vote.
Associated Editor Carleen Johnson contributed to this story.
