Regional Homeless Authority Restructured
Seattle and King County Retake Control of Homeless Authority After Audit Reveals Mismanagement
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Seattle and King County are taking back direct control of homeless services, effectively stripping the King County Regional Homeless Authority (KCRHA) of its core mission. The move follows a forensic audit that found the agency sitting in a $44.7 million negative cash position and unable to account for $8 million in public funds, according to The Center Square.
The announcement comes the same week a new count showed 18,365 homeless individuals in King County — a record high and a 9% jump since 2024, according to The Center Square. The unsheltered population alone surged 21%. After more than five years, the agency created to fix the region's homelessness crisis has only seen it grow.
A $44.7 Million Hole Triggers the Restructuring
In April 2026, accounting firm Clark Nuber P.S. released a forensic evaluation covering mid-2021 through July 2025. It found the KCRHA in a $44.7 million negative cash position. The agency could not match $8 million in spending to any funding source. It also racked up $4.26 million in administrative overspending, including $1.26 million in interest charges on debt, according to The Press.
The KCRHA's model was a key part of the problem. The agency paid nonprofit service providers first, then sought reimbursement from the city and county. Invoicing was slow and internal controls were weak. Spending consistently outpaced incoming funds, and the gap kept growing. In June 2026, auditors released a follow-up report calling the agency's corrective plan inadequate — it had even ignored orders to freeze hiring, according to Rome Sentinel.
City and County Officials Call It a Failed Experiment
King County Councilmember Rod Dembowski has been among the loudest critics. "The Authority has had many chances and has failed miserably," he said. "It's now time for elected officials to bring this failed experiment to an end." He introduced legislation in April 2026 to begin a 90-day process to dissolve the agency entirely, according to El Paso Inc.
Seattle Mayor Katie Wilson said homelessness is her "highest priority" and that she has "serious concerns about KCRHA's management of city funds." King County Executive Girmay Zahilay said returning control to the city and county "aligns responsibility with the organizations best" equipped to handle it. Councilmember Bob Kettle called the audit results "damning," describing an "epic and consistent failure of leadership," according to HPE News.
KCRHA Shrinks to a Pass-Through for Federal Funds
The KCRHA will not disappear entirely. It will keep its role as the agency that receives and passes along federal homeless funding. It will also manage shared data systems used to track homeless individuals across the region. But it will no longer design or run the programs meant to get people off the streets, according to The Daily Gazette.
Seattle and King County will now directly manage hundreds of contracts with homeless service providers. Officials say this may cost more in the short term as city and county departments hire more staff. Both Mayor Wilson and Executive Zahilay say the transition will be a "measured process" to avoid disrupting care for the 18,000-plus people currently using these services, according to NCW Life.
Homelessness Keeps Rising as 18,000 Enter the System Each Year
The KCRHA's founding CEO Marc Dones resigned in June 2023. Current CEO Dr. Kelly Kinnison, hired in June 2024, ordered the forensic audit herself. She blamed the deficit on "startup chaos" and a flawed funding model — not fraud. Auditors found no evidence of intentional misuse. But they also noted that other large agencies use similar funding models without building up massive deficits, according to Keys News.
The numbers tell the harder story. About 17,000 people exit the homeless system in King County each year. But roughly 18,000 new people enter it. The net result is steady growth. Since the KCRHA launched, the number of unsheltered individuals has roughly doubled. The 2026 count of 18,365 is the highest ever recorded, according to Wyoming News.
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