Behavioral Health Facilities Closure Prevention – $9.7 million available

Opportunity Type: Notice of Funding Opportunity (NOFO) Close Date: June 30, 2027 Important Dates: Oct. 23, 2026 - Open for applications Nov. 5, 2026 - Closure prevention webinar (recorded) Nov.10, 2026 - Closure prevention webinar for tribes (not recorded) June 30, 2027- Closed for applications The Behavioral Health Facilities (BHF) Closure Prevention Program is now accepting applications for capital projects to preserve behavioral health facilities through critical repairs or upgrades, necessary to keep the facility in use. This funding will be awarded on a first-come, first-served basis until funds are exhausted. Funding requests cannot exceed $9.7 million. Applications must be submitted through ZoomGrants and those who apply must complete an eligibility screening. Funding will remain open until midnight on June 30, 2027 or until all funds are exhausted. Applicants must demonstrate that, without state investment, their facility is at significant risk of closure within two years. Eligible organizations and facilities Closure prevention funds are available for nonprofits, for-profit businesses, public entities, Tribes and Indian Health Care Providers, community hospitals, and community-based behavioral health providers. Eligible facilities must be licensed and operational and preserve behavioral health services for publicly funded persons. Eligible services include crisis care, residential and inpatient mental health or substance use disorder treatment, mental health peer respite, opioid treatment, and outpatient services. Enhanced services facilities and assisted living facilities providing enhanced adult residential care with community stability support or specialized dementia care, with applicable DSHS licensing and contracts are also eligible. Facilities that have received BHF funding previously are eligible only after fulfilling their existing contractual commitment term. Eligible projects Closure prevention funds support physical repairs and upgrades needed to preserve existing behavioral health facilities. Eligible activities include: Physical repairs and upgrades on facility property. Capital maintenance needed to ensure facilities are compliant with current or impending licensing standards. Capital improvements that would increase available cash on hand for facility operations. Further requirements: Funds may not be used for expansion. Grantees must maintain the contracted use of the facility for at least 10 years. Grant funds must be expended by June 30, 2027. Funding through June 30, 2029 is contingent on reappropriation in the 2027 legislative session. Application webinars Commerce will host application webinars to provide information about this opportunity and to answer questions . Attendance is recommended but not required to apply. The general-audience webinar take place at 3 on Monday, Nov. 5. Join the Nov. 5 webinar (recorded) A separate webinar for tribes will be hosted at 2 on Tuesday, Nov. 10. Join the Nov. 10 tribal webinar (not recorded) Associated Files Full 2025-27 BHF Closure Prevention Notice of Funding Opportunity BHF Program Guidelines Contact Amanda Stenman BHF Program Manager [email protected] (360) 791-1228