$16.7M: Follow-up to April audit shows how King County Regional Homelessness Authority’s shortfall built over years

Calls are growing louder to scrap the effort altogether with revelations that the King County Regional Homelessness Authority has an estimated $16.7 million “unresolved funding” shortfall on its hands and owes millions to the King County Investment Pool.

A review commissioned by the city and King County found no evidence of missing or diverted funds.

Instead, officials say the deficit stems from $15.6 million in lost administrative revenue. Under shifting local priorities and funding, and tied up in bureaucracy and process, service providers spent far less grant money than budgeted, which cut the administrative fees KCRHA was set to earn. KCRHA also spent $3.3 million beyond its funding caps on Salesforce, temporary staff, and legal fees, and racked up $2.4 million in net interest by running overdraft balances in the King County Investment Pool, a county treasury structure that manages operating funds and provides liquidity for regional public agencies.

The report (PDF) attributed the failure to weak financial management systems that failed to link budgeting, billing, and cash reconciliation.

To stabilize operations, KCRHA officials say they are rebuilding accounting controls.

In 2027, KCRHA will transfer local contract administration back to Seattle and King County, refocusing the agency on a smaller portfolio of state and federal responsibilities.

The downsizing of the authority began this summer as officials were forced to restructure the KCRHA after a troubling April 2026 forensic audit found massive deficiencies in the authority’s financial management, internal controls, and oversight.

The authority was formed as officials pledged the new effort would consolidate efforts to address the homelessness crisis at a broader, more regional level. At one point growing to a $250 million a year effort, KCRHA was officially established in late 2019 through an Interlocal Agreement between the county and the City of Seattle under then-Mayor Jenny Durkan and then-King County Executive Dow Constantine.

The King County Regional Homelessness Authority is currently led by Kelly Kinnison who has served as its Chief Executive Officer since 2024.

The KCHRA’s budget was proposed as $205 million in 2026 with about 60% coming from Seattle and the rest from the county and state and federal pass-through grants.

Seattle is shifting its homelessness spending. Mayor Katie Wilson’s deficit-snuffing budget proposal incorporates the return of homelessness contracting to the city.

In a joint statement, King County Executive Girmay Zahilay and Wilson said the county and city are working on a repayment plan to cover the KCHRA shortfall financed on credit through King County’s treasury as the authority continues its restructuring.

Others are calling for the plug to be pulled. King County Councilmember Rod Dembowski and Seattle City Councilmember Maritza Rivera repeated calls for the authority’s dissolution.

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