Category: homelessness

Union Urges Wilson to Act After Investigation into Civil Rights Director Concludes; KCRHA Proposes 7 New Hires

1. PROTEC17, the union that represents workers at the city’s Office for Civil Rights, is renewing its call for Mayor Wilson to remove OCR director Derrick Wheeler-Smith from his position after an internal investigation concluded that Wheeler-Smith subjected “a subordinate employee to unwelcome conduct of a sexually explicit nature during a work-related trip,” according to a letter the union sent Wilson and two city council members last week.

PROTEC17 did not provide the investigation report, which PubliCola has requested from the city. For this reason, it’s unclear which alleged incident this finding refers to; as PubliCola reported earlier this year, staff described multiple incidents in which Wheeler-Smith allegedly made inappropriate remarks about women or sex at staff events. SOCR employees also shared misogynistic images they said Wheeler-Smith sent to male staff, including a meme of Kamala Harris suggesting she got the Presidential nomination by giving oral sex.

In February, PubliCola reported on widespread staff allegations against Wheeler-Smith, which included retaliation, financial self-dealing, anti-LGBTQ+ discrimination, and sexually inappropriate remarks and text messages. Staffers also accused Wheeler-Smith of dismissing civil rights issues faced by immigrants, Asian Americans, and other marginalized people.

“The same investigation found it more likely than not that Director Wheeler-Smith made repeated comments of a sexual nature to staff in the workplace, including in front of his leadership team,” the letter says. “The investigator deemed the comments not ‘objectively offensive’ despite the several employees who reported being offended, crediting instead a division director who ‘thought it was a funny story.’ Resolving whether conduct is objectively offensive by privileging those who were not bothered over those who  were is precisely the kind of judgment OCR exists to scrutinize in other workplaces.”

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The findings against Wheeler-Smith, made by an outside attorney who conducted the investigation on behalf of the city’s Human Rights Investigation Unit, were apparently narrow; in its letter, the union disputes some of the findings and notes that the investigation didn’t consider many of the concerns staff raised in calling for Wheeler-Smith’s removal earlier this year. These issues included retaliation and “conduct based on protected characteristics.”

As we reported, employees said Wheeler-Smith was dismissive about LGBTQ+ civil rights, directing staff to remove pro-LGBTQ+ imagery from internal staff publications and complained about former Mayor Harrell’s comments condemning an anti-trans event in Cal Anderson Park.

Wilson’s office did not respond to questions about Wheeler-Smith; we’ll update this post if we hear back.

Wheeler-Smith, who makes a little over $236,000 a year,  has been on paid leave since March. In his absence, OCR has headed up by an interim director, Erika Pablo, but she’s going on leave; her replacement, SOCR manager Mike Chin, will serve as an interim interim until she returns or Wilson makes a decision on the future of the department.

2. The King County Regional Homelessness Authority’s finance committee recommended hiring for seven positions earlier this week, including a senior director for emergency housing services; a senior coordinator for emergency housing; an accountant; a procurement manager; and an IT and operations staffer.

King County Executive Girmay Zahilay’s chief budget officer, Aaron Rupardt, told the finance committee that he supported the hires, some of which could be internal promotions that would not increase administrative spending. It will be up to the entire governing board, made up primarily of elected officials from around the region, to approve the new hires and any new spending they may require.

In a letter responding to a forensic audit that found serious financial issues, including a growing negative balance, at the agency, Wilson and King County Executive Girmay Zahilay both called for

The committee also recommended approving $43,000 in unspecified discretionary spending requested by KCRHA CEO Kelly Kinnison. KCRHA provided a memo detailing the positions the agency wants to fill on Friday afternoon.

Auditor: KCRHA’s Corrective Action Plan Fails to Take Audit Findings Seriously

Editor’s note: This post has been updated to include KCRHA’s responses.

By Erica C. Barnett

Clark Nuber, the firm that conducted a damning forensic evaluation of the King County Regional Homelessness Authority in April, has responded to the agency’s “corrective action plan” (or CAP) with an equally scathing assessment that lays out seven “red flags” that, according to the auditors, the homelessness agency failed to address in its plan to correct systemic financial issues.

The CAP, Clark Nuber wrote, completely ignored several directives from the city and King County, including orders to put a freeze on hiring and spending, and relies on “trust us” assurances that the KCRHA will fix other serious deficiencies. Given the KCRHA’s repeated failure to meet its prior commitments, “funders should not rely exclusively on KCRHA’s self-reported progress,” the auditors wrote. The plan includes “pervasive use of potential hedge language, like: “‘has begun,’ ‘has initiated,’ and ‘will include'” throughout, the assessment found.

“KCRHA also agrees that progress should be independently verified,” a KCRhA spokesperson said. “That is why the CAP itself recommended external stabilization support, and why we welcome the City and County’s intent to embed external financial expertise to support validation, documentation, and implementation. KCRHA is not asking funders or the public to rely on management assurances alone.”

The KCRHA, Clark Nuber found, also continues to insist—inaccurately—that its deficit (currently around $65 million, up from $45 million last July) is the inevitable result of its funding structure, in which the agency pays homelessness nonprofits and gets reimbursed by the city and county. Many large nonprofit and quasi-governmental organizations use reimbursement-based systems, the auditors pointed out, without the kind of steadily increasing negative balance KCRHA has experienced.

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“[The deficit grew steadily and consistently over time, which is the signature of a management process failure rather than an external shock or an inherent feature of reimbursable funding,” the evaluation found. One of the main issues, the auditors wrote, is that KCRHA has routinely submitted invoices late—up to 16 months—which has prevented the agency from getting reimbursed on time.

The KCRHA spokesperson said the agency “accepts responsibility for internal weaknesses that contributed to the problem” of negative balances. “Those are within KCRHA’s control and are being addressed through the CAP. At the same time, resolving the interest obligation and preventing recurrence will require coordinated work with funders on reimbursement timing, advances, working-capital structure, and treatment of accrued interest.”

The “root causes” of the negative balance “included internal factors: the absence of a formal monthly close process, inconsistent invoice preparation and submission, a lack of real-time cash monitoring, inadequate budget oversight, and insufficient internal controls,” the auditors wrote. “These are organizational management weaknesses, not consequences of the funding model itself.”

Overall, Clark Nuber found that the corrective action plan had not fully met any of seven “key dimensions” laid out in the forensic audit, including “KCRHA understanding of issues,” “achievability,” “accountability,” and risk.

The KCRHA spokesperson said, “Several of the issues raised in the assessment are already being addressed. The governance items referenced by the City and County—including spending controls, hiring controls, and a pause on new agreements that increase cost or liability—have been taken up directly with the KCRHA Governing Board and are in place.”

Additionally, they said, the corrective plan says nothing about $6.4 million in  overspending on programs—”the most significant omission in the CAP”—and the growing amount of interest it owes the King County Investment Pool, from which it routinely borrows money. As we noted in our initial coverage, the $6.4 million is on top of $8 million in spending the KCRHA could not account for, $4 million in administrative overspending, and $1.26 million in interest that is “still growing.”

The KCRHA spokesperson said the agency already addressed the $6.4 million in overspending in late 2025 and early 2026.

Clark Nuber also noted that the KCRHA has put off establishing internal financial controls until the far-off Phase 3 of the plan, even though these controls are “not an aspirational best practice,” but required by federal law. “This means KCRHA will be administering significant public funds, including federal awards, without the required control structure throughout the period that is supposed to represent its most intensive corrective action effort.”

The report includes ten short-, medium-, and long-term recommendations for the city and county. It’s unclear whether either government will take the auditors’ adivce to heart; ten days after Clark Nuber published its report, Seattle Mayor Katie Wilson and King County Executive Girmay Zahilay jointly announced plans to “embed” (and pay for) an outside consultant to “ensure [the] corrective actions” in the KCRHA’s plan “are being implemented with urgency.”

Wilson’s office did not respond to questions Wednesday; Zahilay’s office referred us to his statement about the decision to hire a consultant. The new finance committee of KCRHA’s governing board—one of the steps outlined in the CAP—will meet Thursday morning at 10am.

 

City, County Plan to “Embed” Consultant to Address Financial Issues at Homelessness Agency

By Erica C. Barnett

Mayor Katie Wilson and King County Executive Girmay Zahilay both announced that they plan to “embed an independent financial analyst” in the agency, as a statement from Wilson put it yesterday.

According to Zahilay’s announcement, “This analyst will provide more transparency into financial practices, improve payment processes, and ensure corrective actions are being implemented with urgency.” Wilson’s announcement referred to the analyst (or analysts) as “a financial services team” that will “shore up financial and internal controls at KCRHA.”

The decision came after a flurry of discussions late last week about how to respond to the KCRHA’s “corrective action plan,” which laid out a series of steps to respond to a damning audit that found the agency lacked basic financial controls, overspent its administrative budget, and could not account for $8 million in spending. The audit also found that KCRHA had a consistent and growing negative budget balance—around $45 million when the audit concluded, an amount that had increased to $65 million by the time the auditors presented their results.

The announcement represented a slowdown of what had been growing momentum to “wind down” the agency quickly and send the contracts it manages back to the city and county agencies that used to oversee them. It was also a reversal of a plan set in motion last week.

As recently as last Friday, Wilson and Zahilay were planning to announce on Monday that they were taking back the homelessness contracts and distributing them to the city’s Human Services Department and King County’s Department of Community and Human Services,  according to accounts from people familiar with the discussions. (Zahilay, rather than Wilson, was reportedly leading the charge to pull the plug). Homeless advocates, city council members, and some members of the business and philanthropic community reportedly urged caution, and cooler heads apparently prevailed.

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Under the scenario the city and county were contemplating last week, the KCRHA would continue to exist—at least temporarily—as a shell of itself, serving as the region’s Continuum of Care for federal funding purposes and administering the Point In Time Count of the region’s homeless population.

This may still happen; the decision to fund an accounting team to address the problems identified in the audit does not preclude shutting down the agency. But as of now, that will no longer happen on an accelerated timeline.

As we reported last week, KCRHA CEO Kelly Kinnison and Associate Deputy for Strategy William Towey have asked for $500,000 to hire a fnancial consultant—as Kinnison put it, a “CFO-type role”— through the staffing firm Robert Half, which charges hefty recruitment fees on top of their temporary staffers’ salaries. The KCRHA laid off its most recent chief financial office last October and never replaced him.

A spokesperson for Zahilay’s office said the county does not know yet how much the consultant will cost or how the city and county will split the spending.

Wilson’s office did not respond to questions.

This Week On PubliCola: June 6, 2026

AI use by SPD, doubling taxes for transit, fare gates at light rail stations, and more.

By Erica C. Barnett

Monday, June 1

Seattle Nice: How Badly Did Sound Transit Screw Seattle Over?

On the first of three (three!) Seattle Nice podcasts this week, we disdid a deep dive on the Sound Transit board’s decision last week to indefinitely defer the voter-approved light rail extension to Ballard, a stretch that boasts by far the highest projected ridership of any line in the Sound Transit 3 package voters approved ten years ago. Is Ballard light rail doomed? Tune in to get our takes.

Aide to Councilmember Saka Sought Restraining Order Against Constituent

Elaine Ko, the longtime—and now retired—chief of staff to City Councilmember Rob Saka, got so fed up with a rude and persistent District 1 constituent that she sought a restraining order that would prevent him from contacting her about city business. A judge said the man’s behavior didn’t constitute harassment, but not all our readers agreed.

Tuesday, June 2

Wilson Proposes Doubling Transit Sales Tax to Fund Local Bus Service Expansion

Mayor Wilson rolled out a propsal to double the amount of sales tax Seattle residents pay to get extra transit service in the city. In announcing her plan to increase the regressive sales tax, Wilson said she decided not to impose a vehicle license fee on car owners, in part, because she thought it would prove too “controversial.”

Wednesday, June 3

New Federal Guidelines Put Funding for Permanent Supportive Housing at Risk

After a delay that resulted from a legal battle over an earlier proposal, the US Department of Housing and Urban Development proposed new funding guidelines for housing and services for people experiencing homelessness. Local providers and advocates are still discussing the implications of the guidelines, which could restrict funds for permanent supportive housing but appear less restrictive than the earlier, deeply problematic proposal.

Seattle Nice: Is Seattle’s Housing Market In Trouble?

On this week’s second episode of the podcast, we talked to Redfin’s chief economist, Daryl Fairweather, about the recent slowdown of Seattle’s housing market and whether it means renters and home buyers might see some relief on housing costs.

Thursday, June 4

At City Club Event, Mayor Answers Questions Like “Why Isn’t Pizza Cheap Yet”

FOX 13 anchor Han Kim interviewed the mayor at an event sponsored by City Club Seattle, hitting Wilson repeatedly with bad-faith questions and insisting that she respond to delusional claims about homeless people by D-list former reality star, crystal aficionado, and LA mayoral candidate Spencer Pratt.

No More Laissez-Fare: Pilot Program Will Install Fare Gates at Up to 14 Stations

Sound Transit announced a “pilot” project that will add fare gates to as many as 14 light rail stations, citing high rates of fare “evasion” by riders who board trains without paying at ORCA card readers . The proposal would cost between etween $79 million and $88 million, according to staff, and bring in an additional $30 million a year.

Friday, June 5

Investigation Found That KCRHA Director Retaliated Against Staffers Who Complained

An investigation last year found that a “preponderance of the evidence” supports the conclusion that King County Regional Homelessness Authority director retaliated against two former stffers, Edmund Witter and Xochitl Maykovich, after the two voiced concerns about Kinnison’s leadership at a contentious staff meeting last year.

SPD’s Chief Spokesperson Asked AI for Help with Interview Prep, Rewriting Blog Posts, and More

The Seattle Police Department communications director, Barbara DeLollis, used unapproved AI chatbots to produce a number of SPD-related documents, including a “Comprehensive Communications Toolkit for a Police Department Exiting a Consent Decree. The prompts included “a request to rewrite a published blog post to “ake this a better story for the public of a city that doenst liek crime or disorder” (sic).

Wilson Caves on Stadium Surveillance, Two More Cops Allege Discrimination as SPD Settles Earlier Claims for $2.6 Million

Two stories in this week’s late-Friday Fizz. First, Mayor Wilson decided at the last minute to turn on police surveillance cameras around teh stadiums for the upcoming World Cup games, citing unspecified “general but serious” security threats. She has been under intense pressure from conservatives and police to activate the cameras but had pledged she would not do so unless a credible threat emerged.

Second, four female police officers who sued the city over gender discrimination settled with the city for $2.6 million—right around the time that two different officers, a woman and a gay man, filed a tort claim against the department, alleging they were denied promotions due to anti-woman and anti-gay discrimination by Police Chief Shon Barnes.

Saturday, June 6

Seattle Nice: Mayor Wilson Doubles Down on Transit Sales Tax

On the third episode of Seattle Nice this week, we discuss the mayor’s proposal to double the local sales tax that pays for extra bus service in Seattle. The sales tax is regressive, but it’s one of only two options the city has for increasing local transit service. Wilson rejected the other option, a flat vehicle license fee, as risky; her transportation advisor, Alex Hudson, said this week that the fee would cost car drivers too much for what transit riders would get in return.

 

Investigation Found That KCRHA Director Retaliated Against Staffers Who Complained

By Erica C. Barnett

An investigation last year found that a “preponderance of the evidence” supports the conclusion that King County Regional Homelessness Authority director retaliated against two former stffers, Edmund Witter and Xochitl Maykovich, after the two voiced concerns about Kinnison’s leadership at a contentious staff meeting last year.

As PubliCola reported in August, staff questioned Kinnison’s decision to hire two white male executives, at salaries of $200,000 each, at the same time that she was proposing to eliminate 22 positions and lay off 13 people, including lower-paid staffers of color, to cut costs. The KCRHA board resolved the complaints against Kinnison last October by hiring an executive coach.

Simon Foster, then the deputy executive, accused Kinnison of hiring white male executives because she believed it would help the agency politically. He accused Kinnison of retaliating against him by reducing his duties. James Rouse, the agency’s former chief financial officer, said Kinnison retaliated against him by directing him not to present a preliminary 2026 budget after he said he didn’t support the proposal.

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The investigation, by the law firm Haggard & Ganson, did not find that Kinnison retaliated against Foster or Rouse. Foster’s and Rouse’s positions were eliminated last October. The KCRHA never hired another CFO—a decision that has come up recently as the KCRHA’s funders discuss whether to shut the agency down in light of a recent forensic audit that identified major gaps in financil reporting and accountability.

Maykocich, then the KCRHA’s interim chief program officer, accused Kinnison of retaliating against her by working to undermine her application for the permanent CPO position by, among other actions, sending an email to then-deputy director Simon Foster criticizing her job performance just 20 minutes after the meeting took place.

Witter, then the KCRHA’s general counsel, accused Kinnison of retaliating against him by removing him from all employment-related legal work.

Maykovich left the agency in September. Witter’s position was eliminated in the October purge, leaving KCRHA without full-time legal counsel. Kinnison hired one of the two white men at the center of the complaints, former Lake City Partners director William Towey, immediately after the layoffs.

A KCRHA spokesperson declined to comment on the findings.

On Thursday, Maykovich sued her former employer for alleged violations of the state Public Records Act, alleging that the agency illegally withheld records related to the investigation into staff complaints about Kinnison. Maykovich requested “All complaints against Kelly Kinnison” as well as “All emails, notes, and other materials relating to the investigation into Kelly Kinnison.” According to the court filing, the KCRHA produced 22 pages of redacted records and closed the request, which the lawsuit calls “obviously an incomplete response.”

The future of the KCRHA remains up in the air after a forensic audit found widespread financial failures at the agency, including a growing negative balance, widespread accounting errors, and erroneous invoices, among other serious issues. At a meeting of the City Council’s human services committee on Friday, Kinnison and Towey minimized the audit findings, suggesting that they were almost entirely the result of “historical” problems stemming from the agency’s founding.

Kinnison said the agency will seek funding to hire someone into a a “CFO-type role” from the temp staffing agency Robert Half, which charges significant fees on top of their temp workers’ salaries. Kinnison and Towey estimated that the cost of a temporary CFO would be around $500,000—more than twice the salary of the CFO Kinnison laid off last October.

New Federal Guidelines Put Funding for Permanent Supportive Housing at Risk

By Erica C. Barnett

After a long delay resulting in part from a lawsuit by the National Alliance to End Homelessness, the US Department of Housing and Urban Development has released a Notice of Funding Opportunity (NOFO) for $4 billion in federal funding for homeless shelters and transitional housing. The new guidelines signal a move toward federal funding for temporary transitional housing, street outreach, and faith-based programs that have not previously received federal dollars, and away from permanent supportive housing for chronically homeless people.

The result could be a significant reduction in federal funding for local homelessness programs and a resurgence in funding for transitional housing. Seattle, like many other cities, moved away from transitional housing about a decade ago in favor of permanent housing programs like rapid rehousing—essentially, subsidies for people to rent in the private market—and permanent supportive housing. The annual NOFO is administered by the King County Regional Homelessness Authority (KCRHA), acting as the Continuum of Care (CoC) for the Seattle region.

The new guidelines serve as a replacement for a proposal last year that homeless service providers and advocates said would make it virtually impossible for Seattle-area programs to get federal funding, largely because they placed a 30 percent on funding for permanent supportive housing programs, which make up the bulk of federally funded homelessness programs in Seattle and King County.

While the new NOFO no longer includes this cap, it also makes about 40 percent of the package newly competitive, using a points system that awards extra points to programs that promote “self-sufficiency” and include service participation requirements, such as mandatory substance abuse treatment.

Currently, almost all of the federal funding for homelessness programs in the region, around $60 million (of $67 million total), goes toward permanent supportive housing for people with disabilities, including mental illness and addiction, who need intensive case management and other services.

The new NOFO includes pages and pages of bellicose language about “housing first”—the idea that housing is a necessary condition for recovery and self-sufficiency—calling the approach “a profound failure by any measure.” (Conservatives and the Trump Administration have defined “housing first,” inaccurately, as “housing only,” when such programs actually include supportive services designed to address underlying conditions that lead or contribute to homelessness.)

And it specifically calls out Seattle and King County, along with Portland, as areas of the country where overdoses are high and crime related to homelessness is supposedly out of control.

“HUD is restoring the CoC program to its original goals of reducing homelessness and optimizing self-sufficiency by focusing on meaningful outcomes, expanding  competition, prioritizing treatment, economic independence, and emphasizing law and order,” the NOFO says.

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Despite some over-the-top political rhetoric, the new requirements do not include restrictions such as mandatory sobriety. They do require homeless service providers to “attest” that they won’t operate safe drug consumption sites or ” knowingly permit the use or distribution of illicit drugs on property under their control” under a law widely known as the “crack house law.” That law says no one can own or lease a property “for the purpose of” manufacturing or selling illegal drugs, a provision that has not been applied to housing for unsheltered people.

The new application guidelines also open the door for nontraditional providers, including faith-based groups and organizations that do outreach, to get federal funding. The guidelines give extra points for organizations who “cooperate and [do] not interfere or impede with the enforcement of local laws such as public camping and public drug use laws and assist/be willing to assist first responders in their efforts to engage homeless individuals.”

A group of providers, advocates, and elected officials are meeting this afternoon to discuss the possible implications of the new NOFO rules.

Earlier this week, HUD also released the national results of the annual Point in Time Count, traditionally a one-night count of unsheltered people conducted in January. That count found 16,936 people living unsheltered in the King County region. The KCRHA had planned to release its own PIT count, which is based on one-on-one interviews and statistical sampling, last week, but is now delaying the release until later this month.