In a major overhaul of the region’s homelessness response, Seattle Mayor Katie Wilson and King County Executive Girmay Zahilay announced a joint plan today to "reset" the King County Regional Homelessness Authority (KCRHA). The move follows a forensic audit that uncovered $13 million in unaccounted public funds and described severe financial failures within the agency.

A "Structural Correction"

Effective immediately, the City of Seattle and King County will begin the process of taking back direct management of approximately $158 million in local homelessness service provider contracts. By January 2027, the KCRHA will be stripped of its authority over these local funds, leaving it to manage only federal Continuum of Care funding, which requires a regional entity for administration.

Mayor Wilson framed the decision as a necessary step to take "political responsibility" for a system that has suffered from "unacceptable lapses in financial controls". "We must restore public trust," Wilson said, adding that the city is taking accountability for the system it helped build to "deliver results people can see".

Executive Zahilay described the reset as a "right-sizing" of the agency. He noted that the audit findings were "deeply troubling" and revealed that the KCRHA lacked the necessary financial infrastructure to manage over $150 million in public money. Zahilay emphasized that this is a "structural correction" intended to ensure fiscal responsibility after years of leadership turnover and instability.

Ensuring Stability and Accountability

To address the oversight failures identified in the audit, the city and county will:

• Embed an independent financial analyst inside the KCRHA.
• Appoint a joint financial monitor to oversee operations.
• Maintain current funding levels for service providers to ensure no disruption in care for unhoused residents during the transition.

Reaction from Regional Leaders

The announcement drew support from legislative leaders, though some suggest the changes could go further. King County Councilmember Rod Dembowski and Seattle City Councilmember Maritza Rivera issued a joint statement calling the move a "major step in the right direction," while noting it was not the complete dissolution of the KCRHA they had previously called for.

"This is a much-needed reset," the councilmembers stated. "As recent reports have shown, the County’s unsheltered population continues to grow. We must now turn our efforts to assessing what changes are needed to make our response more effective".

The transition of contracts back to the city and county is expected to be completed by January 2027. Both Wilson and Zahilay committed to a transparent process to maintain "stability, accountability, and continuity of services" for the region's most vulnerable neighbors.