Seattle Leaders Call for Overhaul of Homelessness Agency Following Forensic Audit

SEATTLE – Seattle leaders are calling for major changes to the King County Regional Homelessness Authority (KCRHA) following a forensic evaluation that found significant financial and operational failures within the agency.

The review, commissioned by the City of Seattle and King County and conducted by an outside firm, examined the agency’s operations from its inception through mid-2025. It identified serious issues with internal controls, fiscal management, and accountability, including millions of dollars in unaccounted public funds.

Seattle Councilmember Maritza Rivera said she was “shocked and outraged” by the findings and is calling for the agency to be dismantled.

It shows an egregious mismanagement of funds and an unacceptable lack of financial accountability,” Rivera said in a statement. “KCRHA has a history of dysfunction and inefficiency, and it is time to acknowledge that it has failed in its mission.

Rivera urged Mayor Katie Wilson to present a plan to dismantle the agency and work with the Seattle City Council on how Seattle will move forward in addressing homelessness. She also reiterated her call for a separate audit of the city’s human services contracts.

The forensic evaluation was launched in August 2025 amid ongoing concerns about the agency, including leadership turnover, delayed payments, state auditor findings, unverified accounting practices, and cash flow challenges.

According to city officials, the investigation found the agency was unable to account for about $13 million in public funds. A separate audit cited a negative cash position of $44.7 million as of July 2025 and about $8 million that could not be accounted for.

Mayor Wilson said the findings raise serious concerns and signaled that changes could be coming.

Addressing homelessness is my highest priority, and I have serious concerns about KCRHA’s management of city funds,” Wilson said in a statement. “We need to take swift action to protect public dollars. All options are on the table.

Councilmember Bob Kettle, who chairs the council’s Public Safety Committee, also criticized the agency’s leadership and broader oversight.

The results of the recent King County Regional Homelessness Authority audit are damning,” Kettle said. “It shows an epic, and consistent, failure of leadership at the top of the agency – especially at its start. It also reveals the failure of leadership of the county and city. The audit reveals troubling systemic issues that can no longer be ignored if we are to address the homelessness and public safety crisis in Seattle effectively.

Kettle said the findings highlight systemic issues that must be addressed to effectively respond to homelessness in Seattle. He called for a renewed focus on financial oversight and operational transparency, while maintaining a regional approach to the crisis.

“We have a regional homelessness problem on the streets of Seattle,” Kettle said. “We need a unified, countywide approach that operates with a defined purpose, compassion, and accountability.”

The King County Regional Homelessness Authority was created to coordinate efforts between the city and county to address homelessness, but officials now say its future could be in question as leaders weigh next steps.

King County Executive Girmay Zahilay said the forensic audit of the King County Regional Homelessness Authority raises serious concerns about the agency’s financial management and accountability. He said the county and Seattle have issued a letter outlining required corrective actions and will increase oversight as the agency works to address the findings.

Zahilay added he is focused on improving transparency, stabilizing the agency and ensuring services continue, while working with partners in the coming weeks to determine next steps and strengthen financial controls.

City officials said they are pursuing corrective actions following the findings.