SEATTLE — Seattle officials are demanding substantial reforms within the King County Regional Homelessness Authority (KCRHA) after a forensic review uncovered widespread financial and operational deficiencies.
Initiated by the City of Seattle and King County in August 2025, the evaluation was carried out by a Bellevue accounting firm. It scrutinized KCRHA’s operations from its establishment through mid-2025, prompted by ongoing worries regarding frequent leadership changes, late disbursements, state audit observations, questionable accounting methods, and liquidity problems.
The report revealed a cumulative negative cash balance of $44.7 million, escalating from December 2023 to July 31, 2025. Additionally, the assessment pinpointed an administrative operational shortfall of roughly $4.26 million, a sum that incorporated approximately $1.26 million in interest payments deemed unlikely to be recouped.
The Mayor’s office also reported that the evaluation uncovered approximately $13 million in public funds that the agency could not adequately account for.
KCRHA’s budget data for 2022, 2023, and 2024 indicates that Seattle and King County collectively contributed more than $260 million to the agency’s initiatives aimed at addressing homelessness.
This substantial investment, particularly Seattle’s contribution of up to $113 million in 2024, provoked strong condemnation from several elected officials upon their review of the report on Wednesday.
Seattle Councilmember Maritza Rivera expressed her “shock and outrage” over the findings and advocated for the dissolution of the agency.
It demonstrates egregious mismanagement of funds and an unacceptable absence of financial accountability. KCRHA possesses a track record of dysfunction and inefficiency, and it is imperative to concede that it has fallen short of its objectives.
Rivera implored Mayor Katie Wilson to propose a strategy for dissolving the agency and to collaborate with the Seattle City Council on the city’s future approach to tackling homelessness. She also restated her demand for an independent audit of the city’s human services agreements.
King County Councilman Rod Dembowski echoed Rivera’s sentiments in a public announcement, stating:
I harbored doubts about the formation of the Regional Homelessness Authority from its inception and successfully advocated for changes to the enabling legislation to guarantee that elected officials would retain authority, oversee its finances, and have the option to close it if it proved ineffective. The moment has arrived for elected officials to terminate this unsuccessful endeavor.
Mayor Wilson commented that the discoveries provoke significant apprehension and indicated that modifications might be imminent.
Tackling homelessness remains my utmost priority, and I hold grave concerns regarding KCRHA’s handling of city funds. We must act decisively to safeguard public money. Every possible course of action is under consideration.
Councilmember Bob Kettle, chairman of the council’s Public Safety Committee, also voiced strong disapproval of the agency’s leadership and its wider oversight mechanisms.
The outcomes of the recent King County Regional Homelessness Authority audit are profoundly damning. They expose an epic, and sustained, leadership failure at the highest levels of the agency — particularly in its initial phase. It further uncovers leadership failures from both the county and the city. The audit illuminates problematic systemic deficiencies that can no longer be overlooked if we hope to effectively resolve Seattle’s homelessness and public safety emergency.
Kettle emphasized that the discoveries underscore systemic problems demanding resolution for an effective response to homelessness in Seattle. He advocated for heightened attention to financial scrutiny and operational clarity, concurrently preserving a region-wide strategy for the crisis.
“Seattle’s streets face a regional homelessness challenge,” Kettle declared. “We require a cohesive, countywide methodology that functions with clear objectives, empathy, and accountability.”
Seattle City Councilmembers Alexis Mercedes-Rinck and Dionne Foster released a joint statement underscoring the vital nature of the organization’s mission. These two councilmembers have occupied two of Seattle’s four positions on the KCRHA Governing Board since January 2026.
In a segment of their extended statement, they wrote, “Each error exposed in this audit signifies another squandered chance to avert more hardship in our communities and neighborhoods throughout the region. Simultaneously, the ongoing homelessness crisis necessitates robust regional collaboration to guarantee an impactful response across Seattle and King County.”
King County Executive Girmay Zahilay stated that the KCRHA forensic audit sparks considerable worry regarding the agency’s financial stewardship and transparency. He mentioned that the county and Seattle have dispatched a letter detailing necessary corrective measures and plan to intensify oversight as the agency endeavors to rectify the identified issues.
Both the County Executive and Mayor Wilson co-signed a letter addressed to the KCRHA CFO, requiring a written reply to the funding bodies (HSD and DCHS) specifying how KCRHA intends to tackle numerous “high-risk” observations from the evaluation.
The correspondence further stipulates that by May 23, 2026, KCRHA must submit a detailed written corrective action plan for several other findings, complete with timelines for implementation.
The City and County additionally put forward four recommendations for the KCRHA governing board:
- Form a financial oversight committee that convenes biweekly and reports to the Governing Board each month.
- Enforce an immediate hiring moratorium within KCRHA, accompanied by a documented procedure for exceptions.
- Institute an immediate halt on discretionary expenditures until lifted by the Board.
- Suspend any new contracts that would potentially escalate costs or liabilities for KCRHA.
Zahilay also noted his commitment to enhancing transparency, bringing stability to the agency, and guaranteeing the continuation of services, all while collaborating with partners in the coming weeks to decide on subsequent actions and reinforce financial safeguards.