A forensic audit of the King County Regional Homelessness Authority has revealed the agency cannot account for more than $12 million in public funds and is carrying a negative cash position of $44.7 million, setting off calls this week from elected officials to dissolve the organization.
The $600,000 audit, conducted by Clark Nuber P.S. and commissioned by Seattle and King County officials last summer, examined the agency's finances from 2021 to 2025. Among the findings: $4.26 million in unrecoverable administrative overspending, including $1.26 million in interest charges, and structural spending patterns in which expenditures consistently outpaced funding inflows. The KCRHA's 2026 budget was proposed at $205 million, with roughly 60 percent — approximately $125 million — coming from Seattle.
Seattle Mayor Katie Wilson, who sits on the agency's governing board, said "all options are on the table" and gave KCRHA until May 2 to provide a written response to the findings, with a full corrective plan due later in the month. The agency was also directed to freeze most hiring and discretionary spending. "Addressing homelessness is my highest priority, and I have serious concerns about KCRHA's management of city funds," Wilson said.
Seattle City Councilmember Maritza Rivera called the findings "egregious" and said she would introduce a resolution to dissolve the authority. King County Councilmember Rod Dembowski joined her at a Thursday press conference with a similar pledge. "This latest forensic evaluation is just the last straw," Rivera said. "The evaluation shows a mismanagement of funds that can no longer be tolerated. It is time to find a different way to make this very important work happen."
The KCRHA's governing board met Friday to discuss the audit findings, presented by Clark Nuber. The board voted to establish a finance committee to oversee corrective actions and enforce the spending freeze. King County Executive Girmay Zahilay, who also sits on the board, rejected calls to shut the agency down. "This is not just a light switch that can be turned on and off," Zahilay said after the meeting. "This is a very complex issue. Of course we have to move with urgency to fix these problems, but we also have to move methodically and thoughtfully." Zahilay also said he was surprised to learn the agency currently has no chief financial officer, and called filling that position a priority.
The KCRHA was established in 2019 through an interlocal agreement between King County and the City of Seattle, designed to unify and coordinate homeless services and administer grant funding to a network of service providers across the region. The agency did not become fully operational until 2021 due to pandemic-related delays. It has faced financial scrutiny before and has operated without a permanent CEO since founder Marc Dones resigned in 2023. Kelly Kinnison was appointed to the role in 2024. Seattle Councilmembers Alexis Mercedes Rinck and Dionne Foster, who hold two of the city's four seats on the governing board, called the findings "serious" and "unacceptable" but stopped short of calling for dissolution, saying the homelessness emergency still demands strong regional coordination.
