The announcement, which will send most homeless service contracts back to the city and county, aims to preserve federal funding at risk after a damning forensic audit and changes in funding priorities under Trump.
By Erica C. Barnett
King County Executive Girmay Zahilay and Seattle Mayor Katie Wilson announced Wednesday that they will transfer the region’s homelessness contracts back to the city and county, respectively, effectively ending the King County Regional Homelessness Authority as it has existed for the past five years.
Most of the region’s homeless service contracts, totaling around $160 million, will transition back to the city and county, where they used to live, by January 1, 2027, with some more complex contracts remaining at KCHRA on at least a temporary basis. As previously announced, the city and county will fund a team of consultants, from a company called Turning Point, to correct some of the major financial issues identified in the audit. The total cost, according to officials, will be under $1 million.
The KCRHA will continue to serve as the region’a Continuum of Care, the entity that applies for and administers federal funds, at least for this year. It will also oversee the Homeless Management Information System, a regional database of homeless people and the services they receive, administer the Point in Time Count of the region’s homeless population, and oversee the region’s severe weather shelters.
“It is not being dissolved, it is being strengthened,” Wilson said at a press conference Wednesday afternoon.
The changes will result in about 20 layoffs at KCRHA right away, officials said, with more to come in the future as the contracts move out. The decision to bring contracts back in-house will also result in some new costs for the city and county, especially while the KCRHA is still providing duplicative staffing, although officials said it’s currently unclear how much and what the impact will be on next year’s city and county budgets.
The KCRHA was recently subject to a damning forensic audit that found the agency had a large and growing deficit and lacked basic accounting standards; since then, the agency has released a “corrective action plan” that the auditors themselves said was inadequate and failed to address many of their concerns.
The city and county are describing the new as a plan to “stabilize, right size, and reset” the KCRHA.
“This agency was given incredible responsibility without sufficient capacity or authority to really effectively create and drive an overall strategy for addressing the homelessness crisis in our region,” Wilson said at a press conference Wednesday afternoon, “and I think that the audit really reflects this reality—and also, of course, brings to light specific problems that have to be urgently addressed.”
Wilson and Zahilay both said moving all the homelessness contracts back to the city and county does not mean the KCRHA is a “failure” as an agency. “I think the assumption of city and county contracts by the KCRHA was not terribly successful,” Wilson said. “That’s not saying the agency was a failure, but I think that particular part of its function, talking to service providers, that was not a successful function of this work.”
On Wednesday, city and county officials characterized the decision to take back their contracts as a reset that will allow KCRHA to focus on its “true core function” of serving as the Continuum of Care for the region—that is, as the entity that applies for and administers federal contracts.
As PublicCola has reported, the federal Department of Housing and Urban Development issued a Notice of Funding Opportunity this year—the first step in a competitive bidding process for federal dollars—that prioritizes transitional housing and high-barrier programs that include mandatory services over permanent supportive housing and harm reduction.
Because most of the region’s current federal funding (around $67 million) is for low-barrier permanent supportive housing, KCRHA was already likely to lose federal funds; the recent chaos at the agency makes that even more likely. (HUD recently froze all federal funding with LA’s homelessness agency over financial issues that are similar to those at KCRHA).
City and county officials suggested today that moving the contracts back to the city and county would make the city competitive again. “Taking our local dollars back to the county and back to the city really will relieve KCRHA of that additional responsibility of administering those dollars to really focus at this point in time on the changes in the Continuum of Care and that core function,” Wilson’s deputy director for operations, Mark Ellerbrook, said.
The KCRHA was established at the end of 2019 to replace the previous, locally atomized homelessness system with a “regional approach to homelessness.” The agency began administering homeless service contracts in 2022, but never got around to accomplishing its primary stated goal—getting every city in King County aligned behind a coordinated approach to homelessness and issuing new contracts to nonprofit providers as part of a coherent “five-year plan.” Instead, the KCRHA got mired in a series of ideological arguments and policy missteps, including an aborted pandemic era effort called “Partnership for Zero” that was supposed to end unsheltered homelessness downtown.
The city and county, meanwhile, were never willing to let go of control over what the homeless system looked like—whether, for example, the KCRHA should focus primarily on temporary shelter or permanent housing—and the agency ultimately turned into a pass-through entity for contracts chosen and funded by the city and county. With no taxing authority, KCRHA couldn’t direct homelessness policy in any substantive way, taking direction instead from a series of elected officials with differing political priorities.
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PubliCola has reported in recent weeks on the KCRHA’s oddly blithe response to the forensic audit and the mayor and county executive’s response to its corrective action plan. Both agency CEO Kelly Kinnison and William Towey, the KCRHA’s associate director for strategy, have publicly treated the audit findings as little more than a speed bump, and blamed most of the financial and accounting issues on the way the agency’s budget functions (as a reimbursement system, in which the agency pays nonprofit service providers and gets reimbursed afterward) and previous leadership.
On Wednesday, however, Kinnison said, “As it was launched, [KCRHA] is a failed experiment,” she said.
Given that Kinnison and Towey have largely blamed the agency’s problems on decisions made before Kinnison was hired in 2024, I asked if she saw any of the problems that resulted in today’s announcement as her responsibility. “Absolutely, there are always things I would do differently and prioritize differently,” she said. “Being a newcomer to the region, I think”—Kinnison moved here from D.C.—”was more challenging than maybe I even expected it to be.”
Otherwise, Kinnison said, she came in and took charge of a bad situation by hiring administrative staff and getting the agency into financial shape. If she could have done something different, Kinnison said, she would have “been louder” and “more public” about the agency’s financial issues—”I came in when we were not paying providers on time and people were doing payroll on credit cards”—and lack of finance and administrative staffing. “There’s decisions a reasonable person could have made that would have bene different, but this missing money and construction of the back end [financial system] that didn’t work—that’s an implementation problem.”
Kinnison also reiterated her claim that she had asked the city to initiate a forensic audit into the agency after she arrived and began identifying problems that occurred under her predecessor, Marc Dones. The mayor’s office says that isn’t true, and that the city (under then-mayor Bruce Harrell) and county (under then-executive Dow Constantine) requested the audit. Simon Foster, the former KCRHA deputy CEO, reportedly also raised concerns about the agency’s finances to the city. Foster was laid off by Kinnison last October, as was KCRHA finance director James Rouse, who was not replaced.
City and county officials, as well as as Wilson and Zahilay, were reluctant to say what will happen to the KCRHA after the contracts move. “That’s what the broad stakeholdering is designed to do” over the coming year, Zahilay said. Kinnison’s future at the agency is also up in the air, and she stood at the back of the room, rather than front and center, as Zahilay and Wilson answered questions. In a joint statement after the announcement, King County Councilmember Rod Dembowski and Seattle City Councilmember Maritza Rivera—who both proposed dissolving the agency earlier this year—celebrated the news. “While this is not a complete dissolution of the Regional Homelessness Authority that we may have called for, it is a major step in the right direction,” they said. “This is a much-needed reset of how we manage our homelessness response.”








