This bill adds a new section to chapter 43.185C RCW that creates annual planning, reporting, audit, and eligibility requirements for grantees and subgrantees that receive funding through homeless housing and assistance grant programs administered by "the department." It requires the state auditor to conduct annual performance audits of those grant programs and requires the department to enter into grant agreements that impose these requirements on grantees and require grantees to monitor and pass requirements to subgrantees; a grantee is treated as noncompliant if any of its subgrantees are noncompliant. The bill sets deadlines and data requirements: by December 1, 2025 and each December 1 thereafter grantees and subgrantees must submit an annual plan forecasting the number of people expected to be helped and anticipated spending per individual. The state auditor must determine by December 1, 2025 (with the department) what information is needed for audits; minimum required information includes documentation of expenditures (including receipts) and data on how many people were helped, spending per person to move an individual into housing, and how long each individual remained housed. The department must require submission of the required information to the department and the state auditor by June 1, 2026 and every six months thereafter. The state auditor must file an annual audit report to the appropriate legislative committees by December 1, 2026 and each December 1 thereafter in compliance with RCW 43.01.036. The bill creates eligibility consequences tied to these requirements: a grantee or subgrantee is ineligible to apply for or participate in the department's grant programs if it fails to submit required plans or information by the deadlines, if an audit finds grant money was spent on unauthorized purposes or misappropriated, or if an audit finds noncompliance with the new section. The text provided does not identify which specific agency is meant by "the department," does not include the existing chapter 43.185C text, does not name the legislative committees to receive the auditor's report, does not define "authorized purposes" or misappropriation, and does not specify an exact statutory section number for insertion.

If enacted, organizations that get homeless housing and assistance grants will have to produce yearly plans (starting by Dec. 1, 2025) and then regularly submit detailed spending documentation and outcome data (by June 1, 2026 and every six months after). That means grantees must track how many people they help, how much is spent per person, how long people stay housed, and keep receipts; they also must monitor any subgrantees and will be treated as noncompliant if a subgrantee fails to meet the rules. Failure to file plans or the required information, or audit findings of unauthorized spending or noncompliance, will make an organization ineligible for future grants from the program. The practical result is more administrative work and likely higher compliance costs for grantees and subgrantees — they may need extra staff time or outside help to gather, document, and report results — and a real risk of losing future funding if audits find problems. The state auditor will add annual performance audits and the department that runs the grant program must add these reporting and contract conditions and enforce them, which could increase oversight costs. It is unclear from the text which specific agency is referred to as "the department," how "authorized purposes" are defined, when the auditor’s first full audit cycle will start, and which legislative committees will receive the reports.