Seattle, King County plan to reclaim nearly $160M in homelessness contracts from KCRHA

The King County Regional Homelessness Authority (KCRHA) will survive despite calls from some Seattle and King County leaders to dissolve it — but KCRHA is being stripped of most of its day-to-day responsibilities, officials said Monday.

Seattle and King County plan to reclaim nearly $160 million in homelessness contracts from the embattled agency after a forensic audit earlier this year revealed $13 million in taxpayer funds were mismanaged amid a growing $45 million deficit.

“Neither the city nor the county is proposing that we dissolve the King County Regional Homelessness Authority,” Mark Ellerbrook, city of Seattle Deputy Director of City Operations, said.

KCRHA’s reduced role: Federal funding, point-in-time count

Under the restructuring, KCRHA will focus on procuring federal money, such as Continuum of Care grants from the U.S. Department of Housing and Urban Development. The agency will also continue conducting the Point-in-Time Count, managing Coordinated Entry, administering the Homeless Management Information System, and coordinating countywide severe weather efforts.

“Moving homelessness service contracts back to the County and City is part of our effort to right-size the King County Regional Homelessness Authority, reducing its administrative responsibilities so it can focus on its core regional role, including administering the federal Continuum of Care,” King County Executive Girmay Zahilay and Seattle Mayor Katie Wilson said in a joint statement. “This transition is guided by our shared commitment to providing high-quality shelter, services, and housing; creating clear pathways to permanent housing; and recognizing that homelessness is a regional challenge that requires coordinated action.”

“The future of the regional homelessness response system must be shaped by partners across the region,” the statement added. “We are using this reset as an opportunity to engage stakeholders to strengthen our approach on this crisis and make real progress for our communities.”

$112.8M to Seattle, $46.3M to King County starting January 2027

Beginning in January 2027, Seattle’s Human Services Department (HSD) will resume administration of 117 emergency homelessness response contracts totaling $112.8 million with 40 providers, according to the plan released Monday.

King County’s Department of Community and Human Services (DCHS) will take back 100 county-funded contracts totaling $46.3 million with 40 providers. Collectively, more than 50 service providers currently hold contracts at KCRHA that will transition to HSD and DCHS.

Existing 2026 contracts with service providers will be extended through 2027, officials said.

New hires, added costs to manage returning contracts

HSD will add 23 emergency positions to help manage the returning contracts at an expected annual cost of $3.9 million.

King County’s Housing and Community Development Division plans to hire approximately 10 full-time employees and one term-limited temporary position.

Councilmember Rivera called for KCRHA to be dismantled

Seattle City Councilmember Maritza Rivera said in April that she wants the agency dismantled.

“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,” Rivera said in a statement. “It shows an egregious mismanagement of funds and an unacceptable lack of financial accountability.”

Rivera and King County Councilmember Rod Dembowski introduced legislation to dissolve KCRHA after the audit was released.

On July 1, Zahilay and Wilson announced their plan to “stabilize, right-size, and reset” the agency.

Frank Lenzi is the News Director for KIRO Newsradio. Read more of his stories here.

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