Public concern has risen after a forensic evaluation revealed that roughly $8 million in public funds are missing from King County Regional Homelessness Authority (KCRHA) financial records. Findings have spurred discussion among King County council members about whether the county should dissolve, amend or continue the agency. At the same time, the uncertainty has unsettled King County residents who depend on the agency’s programs and services. While the financial mismanagement discovered is truly worrisome, dissolution of the agency is not the best solution. King County’s homelessness crisis is ongoing, and while the audit’s discoveries must be addressed swiftly, the people relying on KCRHA’s system cannot be left without critical housing and health care services.
Auditors flagged the agency’s negative cash balance of approximately $44.7 million, an administrative operating deficit of $4.26 million and interest charges of about $1.26 million. Weak financial reporting, ineffective invoicing, poor oversight and overdependence on reimbursement-based funding distressed critics and auditors alike.
In a unanimous vote May 5, King County council members motioned King County Executive Girmay Zahilay to order a 90-day in-depth analysis that will determine the future of KCRHA. The review will examine the organization’s financial condition, operational performance and the transition feasibility if the organization is terminated. Rather than throwing everything away and starting over, the examination will provide the agency with an opportunity to make the necessary improvements with a clear timeline, stronger oversight and regular progress checks to ensure public accountability and transparency.
Homelessness specialist Barb Oliver emphasized the critical need for continuation of services.
“I want to remember there are thousands still on the streets… Don’t eliminate any agency unless you have something better to replace it with,” Oliver said to KOMO News.
Disrupting the federally funded shelter, outreach and health care services KCRHA provides could significantly harm thousands of King County residents depending on them.
Since KCRHA’s founding, the City of Seattle and King County have funded the agency as the central mechanism for the regional response to homelessness. Its mission is to consolidate and coordinate policy, funding and services for people experiencing homelessness across King County. Research finds that cross-sector collaboration is especially beneficial in addressing homelessness, as services are often fragmented across geographic areas and operate on limited resources. Nonprofit and public partnerships can bring local expertise, flexibility and closer relationships with people seeking help. No single sector can solve the problem alone.
Through a patchwork of partnerships and programs, KCRHA has connected people to stable housing and worked to gather more accurate data on who is experiencing homelessness, where they are and what services they have accessed. In collaboration with King County Public Health, KCRHA expands access to care for people facing substance use and co-occurring conditions, recognizing that combined housing and mental health treatment significantly improves long-term retention. Through a federally funded Housing Voucher Program, KCRHA has helped roughly 1,400 people move into permanent housing. Its Partnership for Zero initiative has brought more than 230 individuals off the streets in Downtown Seattle and the Chinatown-International District, while the State Right of Way Safety Initiative has supported around 300 people through a mix of temporary and permanent housing options.
Still, much work remains as thousands of King County residents continue to live unsheltered and without consistent support.
One response to the audit would be to replace KCRHA with a dedicated county department. Supporters of that model argue that direct public administration could improve accountability and reduce bureaucratic inefficiency.
“It’s added an unnecessary, ineffective layer of government that has not been accountable to our region’s most pressing challenge, and it’s time to end it,” King County Councilmember Rod Dembowski argued.
But that approach would also risk weakening the regional coordination needed to address a crisis that crosses city boundaries. Homelessness in King County remains severe, with the 2024 point-in-time count estimating 16,868 people experiencing homelessness on a single night, with the annual estimate being far higher. However, if KCRHA cannot meet basic accounting and transparency standards within that timeline, then dissolution should absolutely be reconsidered.
KCRHA CEO Kelly Kinnison said the agency is taking the audit seriously and is committed to resolving the problems it exposed. She noted that the agency is working to strengthen its financial systems, improve reporting and tighten accounting practices to prevent similar issues in the future.
Any next steps must also prioritize continuation of services. KCRHA’s partners and programs support thousands of people across King County, and a sudden end to those support systems could destabilize people who already face severe housing insecurity. For that reason, the strongest path may be to preserve KCRHA, with much stronger oversight, accountability and transparency. King County should keep funding KCRHA, but only alongside an independent monitoring structure, clearer reporting requirements and a hard timeline for improvement of both financial health and operational accountability. Because the homelessness crisis crosses city and county boundaries, there is still significant value in a consolidated regional partnership. A regional crisis still needs a regional response, but only one that has earned public trust.
Zoned Out takes a look at local news, policies and politics that shape our daily lives. This column explores how Seattle addresses its biggest challenges around affordability, housing and homelessness, transportation and community development. Jo Moreau is a fourth-year public affairs major.
