Seattle leaders prepare for the big question: repair KCRHA or walk away?

Seattle, Washington – Seattle’s review of the King County Regional Homelessness Authority is moving into a new and more serious phase after a City Council committee unanimously advanced a resolution calling for clearer answers, tighter oversight and a decision on the agency’s future.

The measure, Resolution 32202, is sponsored by Councilmember Alexis Mercedes Rinck and Councilmember Dionne Foster, who serve as chair and vice chair of the Human Services, Labor, and Economic Development Committee. Both also represent the Seattle City Council on the KCRHA Governing Board.

The resolution follows the release of an April 22 forensic evaluation that raised troubling questions about the agency’s finances and internal controls. According to the evaluation, KCRHA faced a negative cash position of $44.7 million, along with $13 million in unreconciled balances and administrative overspending.

“Following the KCRHA forensic evaluation, we are bringing forward this resolution to establish a clear framework for accountability, oversight, and transparency as the City evaluates next steps. The resolution outlines immediate actions to safeguard public funds, evaluate the viability of corrective actions at KCRHA, and establishes a measured process for any potential restructuring decisions,” Councilmembers Foster and Rinck said in a joint statement.

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The authority was created after Seattle and King County entered into an interlocal agreement in December 2019, following authorization by Ordinance 126021. Its purpose was to build a coordinated regional system for homelessness services, bringing local governments and service providers under a shared structure.

But the new audit findings have placed that structure under fresh scrutiny. Seattle and King County engaged Clark Nuber P.S. in 2025 to conduct the forensic evaluation, which reviewed the agency’s financial condition, governance and risk management practices from mid-2021 through July 31, 2025. The review focused partly on what contributed to negative cash balances and how oversight could be strengthened.

Under the resolution, the Mayor’s Office would be asked to provide an initial assessment of KCRHA’s corrective action plan to the committee chair by June 15. By Aug. 1, the Mayor’s Office would also be asked to recommend whether Seattle should continue its relationship with KCRHA, restructure the agency, dissolve it or terminate the city’s role.

If restructuring or dissolution is recommended, the administration would need to submit a plan covering public and stakeholder engagement, a new service contract model, Seattle’s internal administrative capacity and continued regional cooperation with King County.

“The resolution mirrors a parallel proposal advanced at the King County Council by Councilmembers Steffanie Fain and Jorge Barón. As Governing Board Members, we are closely coordinated throughout this process. We also want to thank City Councilmember Kettle for his work in moving this forward, as an alternate member on the Governing Board,” Foster and Rinck said.

They added that any next step must avoid disruption for people relying on homelessness services and the providers delivering them.

The full Seattle City Council is expected to discuss and vote on the resolution on June 2.