King County homelessness program’s fate is unclear amid financial problems

Published 1:10 pm Wednesday, May 13, 2026

The King County Council is demanding action in correcting the $45 million budget deficit of the King County Regional Homelessness Authority.

On May 5, the council approved a motion to call on King County Executive Girmay Zahilay to create a plan of action for the administrative shortfalls of the King County Regional Homelessness Authority (KCRHA).

This includes an assessment of the funding shortfalls, KCRHA’s corrective action plan, and what actions are needed to ensure continued compliance with federal, state and other funding requirements during implementation of the corrective actions. The motion calls for the executive to give an initial briefing to the committee of the whole no later than June 15, and electronically file the requested report by Aug. 1.

The Aug. 1 deadline will allow the council time to decide on Proposed Motion 2026-0107, which would provide notice of the termination of the county’s participation in the Amended and Restated Interlocal Agreement and trigger a 12-month period of dissolution for the authority. The motion will go before the committee of the whole on Aug. 25.

“As we discussed last week, the findings of the forensic evaluation of KCRHA are deeply concerning and require a serious response. Residents and the organizations doing this work cannot afford for us to get this wrong,” Councilmember Jorge L. Barón said. “The goal of the proposal that we bring before you is to set out a clear process and timeline for us as a body to make a decision on the future of KCRHA.”

On April 17, accounting consultant Clark Nuber released a forensic evaluation of the KCRHA, a government entity with the mission to operate a homelessness support system to address unsheltered homelessness, covering the period from mid-2021 through July 31, 2025, for the city of Seattle.

The report found KCRHA experienced recurring negative cash balances beginning in December 2023, and reached a negative cash position of approximately $44.7 million as of July 31, 2025. KCRHA had an administrative operating deficit of approximately $4.26 million, which includes approximately $1.26 million in interest charges that are not expected to be recovered. Additionally, the report said a receivables balance of $8 million could not be reconciled based on available records.

“I believe we have a five-alarm fire here,” Councilmember Rod Dembowski said. “I am extremely concerned about the position that this agency has put county taxpayers in by continuing for years to borrow money to run their operations and, worse, spend more than they had appropriated to them. They have dug a hole.”

King County and the City of Seattle previously sent a letter of expectations to KCRHA that outlined the actions they expect the authority to take, which include a written response to their funders on how KCRHA will address the findings and a written corrective action plan. The letter also outlines actions both the county and city will take to provide additional fiscal oversight while KCRHA works to meet the expectations outlined in the letter and to address the report’s findings.

King County Executive Zahilay previously said the report “raises serious, concerning questions about KCRHA’s internal controls, fiscal management, and accountability.”

“Solving King County’s significant homelessness crisis requires honesty about where the regional response system is falling short and a commitment among government partners to bring more people inside,” Zahilay said. “We have a responsibility to ensure this system delivers results — operating with greater efficiency, full transparency, and strong accountability for every public dollar entrusted to us.”

According to the KCRHA’s 2024 Point-in Time Count (PIT) 16,868 individuals were experiencing homelessness in 2024, 26 percent higher than 2022. In a 2023 presentation, KCRHA said their system moved 5,600 households into permanent housing in 2022.

“I want to reiterate that as we go through this process of reviewing what happened, where we are financially with KCRHA, that we don’t lose sight of the population that’s being served,” Councilmember Rhonda Lewis said. “I believe we can serve our vulnerable population in a fiscally responsible way.”