King County and the city of Seattle will be taking on the administration of city and county-funded homelessness service contracts from the King County Regional Homelessness Authority (KCRHA) through a phased implementation beginning in January 2027. This decision comes after an April 2026 audit found a $45 million deficit in the KCRHA.

Background

The KCRHA is a government entity formed in 2019 to operate a homelessness support system in King County. The authority is primarily funded by the City of Seattle Human Services Department and the King County Department of Community and Human Services, with a total of $533.9 million in funding from all sources from inception through July 31, 2025.

According to King County Executive Girmay Zahilay, the KCRHA experienced recurring negative cash balances beginning in December 2023, reaching a negative cash position of approximately $44.7 million as of July 31, 2025. The authority also had an administrative operating deficit of approximately $4.26 million, which includes approximately $1.26 million in interest charges that are not expected to be recovered.

Plan to Stabilize and Reset

Zahilay outlined a three-pronged plan to stabilize, right-size, and reset the KCRHA. The plan includes embedding an independent financial compliance team within the KCRHA to strengthen financial oversight and improve internal controls. The administration of city and county-funded homelessness service contracts will transition back to King County and the city of Seattle through a phased implementation beginning in January 2027.

Zahilay also plans to reset the regional approach to homelessness by conversing with cities, state and federal partners, service providers, and communities across the region about the future of the regional homelessness response.

Original reporting: Renton Reporter — read the source article.