KCRHA claims Seattle, King County owe it $8M
KCRHA claims Seattle and county owe it millions
The embattled King County Regional Homelessness Authority claims it is owed $8 million from Seattle and the county, despite an audit of the agency revealing $13 million in unaccounted-for public spending.
SEATTLE - The King County Regional Homelessness Authority (KCRHA) is facing intense scrutiny after a forensic evaluation revealed it cannot account for $13 million and faces a $45 million deficit. However, the troubled agency now claims it is actually owed $8 million by the City of Seattle and King County.
William Towey, KCRHA’s associate deputy of strategy, made the claim before King County Council members, explaining the agency simply failed to bill the local governments for services it had already run.
"Basically, these are the funds that we should’ve billed to King County and the City of Seattle — and we didn’t," Towey said.
Councilmembers taken by surprise
The sudden $8 million request caught county leaders off guard. Councilmember Claudia Balducci questioned Towey during a public meeting, asking for confirmation on whether the agency truly believed it was owed the multi-million dollar sum.
The agency's ongoing financial instability has led some local officials to call for KCRHA to be completely dissolved.
In April, King County Councilmember Rod Dembowski argued the agency has failed in its primary mission, noting that the unsheltered population has doubled during KCRHA's six years of operation.
"The problem of unsheltered people has gotten twice as bad in the six years that they’ve been around," Dembowski said. "So it’s not working... We’ve got to shut that down."
Restructuring instead of disbanding
Despite the severe financial discrepancies, King County Executive Girmay Zahilay and Seattle Mayor Wilson are defending a collaborative plan to "stabilize, right size, and reset" the agency.
The proposal would shift major service contracts back to the city and county governments. This transition is intended to let KCRHA focus on its core function as the designated applicant for federal continuum of care funding.
"We’re really focused on strengthening the agency to perform its core functions," Mayor Wilson said.
No blank checks without verification
Local leaders emphasized that no payments will be made to KCRHA without a thorough, independent review.
Executive Zahilay’s office released a statement noting that the agency has not yet identified the specific programs, receivable balances, or costs that comprise the requested $8 million.
An independent financial consultant will be brought in to verify the agency's claims before any money is paid. King County officials stated they are open to paying, but will only cover expenses determined to be the county's explicit responsibility.
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The Source: Information in this story comes from original reporting by FOX 13 Seattle reporter Alejandra Guzman.