Seattle and King County officials are responding to a critical forensic evaluation of the King County Regional Homelessness Authority (KCRHA). The review uncovered substantial financial mismanagement and operational deficiencies.

Audit Reveals Millions in Unaccounted Funds

The comprehensive audit, initiated in August 2025, found a pattern of internal control failures, poor fiscal management, and a lack of accountability. Approximately $13 million in public funds are currently unaccounted for. As of July 2025, the KCRHA reported a negative cash position of $44.7 million, with an additional $8 million remaining unverified.

Calls for Dismantling and New Oversight

Councilmember Maritza Rivera has called for the complete dismantling of the KCRHA, stating its continued operation is unacceptable given its history of dysfunction. She has urged Mayor Katie Wilson to develop a plan for dissolution and collaborate with the Seattle City Council on a new approach to addressing homelessness.

Demands for Broader Audits

Rivera has also requested a thorough audit of all city-administered human services contracts to ensure responsible use of public resources.

Systemic Failures Highlighted in Report

The forensic evaluation detailed numerous issues plaguing the KCRHA from its inception through mid-2025. These included frequent leadership turnover, payment delays to service providers, critical findings from the state auditor, questionable accounting practices, and persistent cash flow challenges.

County-Wide Collaboration Essential

Councilmember Bob Kettle, chair of the Public Safety Committee, described the audit results as “damning” and indicative of systemic leadership failures. He emphasized the need for financial oversight and operational transparency, stressing that a unified, countywide approach is crucial to tackling the homelessness crisis. Kettle underscored that Seattle cannot address homelessness in isolation.

County Response and Corrective Actions

King County Executive Girmay Zahilay acknowledged the seriousness of the audit findings, expressing concern about the KCRHA’s financial management and accountability. He stated that the county and Seattle have jointly issued a letter outlining specific corrective actions the agency must undertake.

Increased Oversight and Potential Restructuring

Zahilay affirmed a commitment to improving transparency, stabilizing operations, and maintaining essential services while exploring potential restructuring options. Oversight will be intensified to ensure compliance.

The situation is complicated by other challenges, including planned campground closures and reductions in recreation services due to budget constraints. Investigations are also underway regarding discarded election mail and reports of car prowls.