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Audit finds $13 million funds missing from KCRHA
The King County Regional Homeless Authority is unable to account for $13 million in public funds since its introduction, a forensic audit found.
SEATTLE - The City of Seattle and King County are going after the embattled King County Regional Homelessness Authority, after an investigation found the agency was unable to account for $13 million in public funds.
According to the Office of Seattle Mayor Katie Wilson, the city and county launched a forensic investigation into KCRHA in August 2025, following a spate of controversies — operational issues, financial woes, leadership turnover, payment delays, administrative overspending and unverified accounting of cash advances. The investigation covered the six years the agency has been in operation.
The result of that investigation?—KCRHA is unable to account for $13 million in public funds, according to the Mayor's Office.
Mayor Wilson says the city is now pursuing "immediate corrective action."
What they're saying:
"Addressing homelessness is my highest priority, and I have serious concerns about KCRHA’s management of city funds," said Mayor Wilson. "We need to take swift action to protect public dollars. All options are on the table."
City Councilmember Maritza Rivera is calling for the dismantling of KCRHA, saying it has "failed in its mission":
"I am shocked and outraged after seeing the results of the forensic evaluation of the King County Regional Homelessness Authority, which I just received today. It shows an egregious mismanagement of funds and an unacceptable lack of financial accountability.
"KCRHA has a history of dysfunction and inefficiency, and it is time to acknowledge that it has failed in its mission.
"I am calling for Mayor Wilson to provide a plan for the dismantling of KCRHA as soon as possible, and a commitment to work with City Council to determine how Seattle will move forward in meeting its shelter and housing needs.
"On the heels of today’s announcement, I am even more steadfast in my call for an audit of Seattle’s human services contracts. We need to get our house in order."
The other side:
KCRHA CEO Kelly Kinnison acknowledged the investigation's findings in a memo sent to the agency's Governing Board.
Kinnison requested the forensic investigation shortly after joining the agency, and notes that much of the report's most damning findings were "concentrated in KCRHA's early formation period," exacerbated by the COVID-19 pandemic, startup challenges, complicated funding and other issues.
Kinnison says many of those problems have been addressed in recent years, though she admits they still have improvements that can be made.
"Importantly, the audit did not identify evidence of fraud or misuse of funds. The findings instead focus on the need and cost of maturing our financial systems, reporting practices, and internal controls," said Kinnison. "We take these findings seriously. Many reflect conditions that I was hired to address and have been working on — and the audit provides important clarity that will help guide our next phase of strengthening KCRHA’s financial systems and organizational performance."
Dig deeper:
Additionally, Seattle City Council members Alexis Mercedes Rinck and Dionne Foster issued the following joint statement in response to the audit findings:
"On Tuesday evening, we received the findings of the KCRHA forensic audit. The findings are serious, unacceptable and demand immediate action and accountability.
Every misstep revealed in this audit represents another missed opportunity to prevent further trauma in our streets and neighborhoods across the region. At the same time, the homelessness emergency continues to demand strong regional coordination to ensure an effective response across Seattle and King County.
As elected officials, we are entrusted by our constituents to ensure every dollar is driving real, measurable impact for our communities. In response to this audit, KCRHA must act immediately to instate stronger financial controls. Following that, we must bring our region together to determine the future of our regional homelessness system. Fundamentally, we have a duty to get people housed and do right by the taxpayers of Seattle and King County."
King County Councilmember Rod Dembowski also released the following statement:
"I was a skeptic of establishing the Regional Homelessness Authority from the beginning and successfully fought to amend the authorizing legislation to ensure that elected officials would remain in control and would oversee its budgets, and that it could be shut down if it failed. It’s now time for elected officials to bring this failed experiment to an end.
"The Authority has had many chances to advance its mission, and has failed miserably, over and over again. The financial review which has been completed is shocking in its findings - overspending, lack of controls, and an inability to show where significant public dollars have been spent. The agency has failed in its core obligation - to make significant progress in getting people sheltered.
"We must return the work of addressing homelessness to the City of Seattle, King County, and our partner cities throughout the region, and eliminate this expensive and ineffective layer of government."
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The Source: Information in this story comes from Seattle Mayor Katie Wilson's office and the Office of Councilmember Maritza Rivera.