Seattle leaders are moving forward with a formal review process that could ultimately lead to the restructuring or dissolution of the King County Regional Homelessness Authority following a forensic evaluation that identified significant financial and oversight concerns within the agency.
Last Friday, the Seattle City Council’s Human Services, Labor and Economic Development Committee unanimously approved Resolution 32202, establishing a framework and timeline for evaluating KCRHA’s future and determining whether the regional homelessness agency should continue operating in its current form.
The measure was sponsored by Councilmember Alexis Mercedes Rinck and Councilmember Dionne Foster, who serve as chair and vice chair of the committee and also represent the Seattle City Council on the KCRHA Governing Board.
The proposal follows the release of a forensic evaluation made public April 22 that identified several concerning findings related to KCRHA’s finances and internal controls, including a negative cash position of $44.7 million and approximately $13 million in unreconciled balances and administrative overspending.
The evaluation, conducted by Clark Nuber P.S., reviewed KCRHA operations from mid-2021 through July 31, 2025, examining the agency’s financial condition, governance structure, and risk management practices, with particular attention given to the factors contributing to negative cash balances and opportunities to strengthen oversight and accountability.
Resolution 32202 establishes a series of deadlines and next steps as Seattle evaluates its relationship with KCRHA.
Under the proposal:
- By June 15, the Mayor’s Office must provide the chair of the Human Services, Labor and Economic Development Committee with an initial assessment of KCRHA’s corrective action plan.
- By Aug. 1, the Mayor’s Office must recommend whether Seattle should terminate its relationship with KCRHA and whether the agency should be dissolved, restructured, or continue operating in its current form.
- If restructuring or dissolution is recommended, the Mayor’s Office would be required to submit a transition plan addressing stakeholder engagement, service delivery contracts, the city’s internal administrative capacity, and continued regional coordination with King County.
In a joint statement, Foster and Rinck said the resolution is intended to strengthen accountability while preserving continuity of services during the review process.
“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,” Foster and Rinck said. “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.”
The councilmembers also noted that Seattle’s review process is being coordinated with similar efforts underway at the county level.
“The resolution mirrors a parallel proposal advanced at the King County Council by Councilmembers Steffanie Fain and Jorge Barón,” Foster and Rinck said. “As Governing Board Members, we are closely coordinated throughout this process.”
They also acknowledged Seattle City Councilmember Bob Kettle for work advancing the proposal in his role as an alternate member of the KCRHA Governing Board.
Despite the financial concerns identified in the evaluation, city leaders emphasized maintaining stability for service providers and preserving homelessness services while discussions continue.
“As these conversations continue, it’s critical that we protect the continuity of services for people experiencing homelessness, maintain stability for providers, and take steps to improve public confidence in stewardship of public dollars,” Foster and Rinck said.
KCRHA was established in December 2019 through an interlocal agreement between the City of Seattle and King County to create a coordinated regional approach to homelessness services and improve delivery systems across jurisdictions.
The resolution is expected to move before the full Seattle City Council for discussion and a vote on June 2.
