‘The agency is unable to account for $13 million in public funds’: What the mayor says about Regional Homelessness Agency review results (and see the report)

5:56 PM: Seattle Mayor Katie Wilson says the King County Regional Homelessness Agency can’t account for $13 million in “public funds,” according to a review of the agency commissioned by the city and county before she took office, Here’s her statement:

The City and County launched a forensic evaluation into the KCRHA in August 2025 in response to ongoing operational and financial issues at the agency, including leadership turnover, delayed payments, State Auditor findings, unverified accounting of cash advances, persistent cash flow challenges, and overspending on administrative resources.

The City of Seattle has received the results of a forensic investigation covering the period from the agency’s inception through July 2025 which identifies serious failures of KCRHA’s internal controls, fiscal management and accountability. The investigation found that the agency is unable to account for $13 million in public funds, and the City will be pursuing immediate corrective action.

“Addressing homelessness is my highest priority, and I have serious concerns about KCRHA’s management of city funds,” said Mayor Katie B. Wilson. “We need to take swift action to protect public dollars. All options are on the table.”

The agency is supposed to be handling contracts with service providers, including the $3 million contract for the planned new West Seattle tiny-house/RV-lot site Glassyard Commons. Some Seattle councilmembers are reacting with anger; Councilmember Maritza Rivera says the agency should be dismantled, while Councilmember Bob Kettle says the review surfaces “systemic issues that can no longer be ignored.” (He cites the amount of missing money as $8 million; as of this writing, the actual report by Clark Nuber P.S. hasn’t yet been released to media. We’ll link it when we get/find it.)

6:33 PM: Here’s the report, forwarded by the mayor’s office.

7:03 PM: As the cover letter, also provided by the mayor’s office, notes, KCRHA has until May 8 to provide a response, then must provide a corrective plan later in the month.

7:42 PM: Also weighing in tonight, citywide Councilmembers Alexis Mercedes Rinck and Dionne Foster:

… The findings are serious, unacceptable and demand immediate action and accountability.

Every misstep revealed in this audit represents another missed opportunity to prevent further trauma in our streets and neighborhoods across the region. At the same time, the homelessness emergency continues to demand strong regional coordination to ensure an effective response across Seattle and King County.

As elected officials, we are entrusted by our constituents to ensure every dollar is driving real, measurable impact for our communities. In response to this audit, KCRHA must act immediately to instate stronger financial controls. Following that, we must bring our region together to determine the future of our regional homelessness system. Fundamentally, we have a duty to get people housed and do right by the taxpayers of Seattle and King County.

Dana April 22, 2026 (6:06 pm)

Curious. Maybe we should start looking at how these agencies are spending money instead of just jumping to raising taxes.

Odd son April 22, 2026 (7:06 pm)

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Yes, the more money they get, the worse the problem becomes.
Lauren April 22, 2026 (7:08 pm)

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I mean, that’s what’s happening here, right?
- flimflam April 23, 2026 (12:39 pm)
  
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  It should be happening waaaaay more frequently – like monthly, weekly book keeping.
Lookin April 22, 2026 (7:22 pm)

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“Look at how these agencies are spending money…” Do you mean, like, audit them and publicly release a report on the audit’s findings?
John April 22, 2026 (7:39 pm)

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Well, according to our mayor’s statement, they do that: “in response to ongoing operational and financial issues at the agency”The money is intended for specific purposes. It didn’t get allocated properly (i.e. they are already “looking at” that), so they investigated.It’s a good thing that we spend our tax money on addressing homelessness and I’m happy to contribute to that pool of money (in my case, through the increases in my rent). It sure would be nice to have a better tax system here so we weren’t so reliant on property tax.
Derek April 22, 2026 (7:41 pm)

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Dana that’s literally what Katie is doing.
- flimflam April 24, 2026 (2:25 pm)
  
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  Katie isn’t the one that initiated this, it was Harrell. It will certainly be interesting to see what she’ll actually do about it.
RD April 22, 2026 (8:40 pm)

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Not surprised at all. All departments and agencies connected to Seattle government should be under review and audited. I am sure they will find fraud and miss management of our tax dollars. Love how our city council acts so surprised this is happening.

Lucy April 22, 2026 (6:54 pm)

I’m sure nothing nefarious is occurring. Pay your taxes. Don’t ask questions. Pay no attention to the man behind the curtain.

aRF April 22, 2026 (6:59 pm)

I remember when the KCRHA was supposed to be the answer to our homeless crisis.

Derek April 22, 2026 (7:36 pm)

So Katie is holding them accountable. Isn’t this what all the Harrell supporters wished HE would have done? Pull out of this and have Seattle fund what they can control and put money towards THVs

Bradley April 22, 2026 (7:56 pm)

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“While former Mayor Jenny Durkan was an enthusiastic supporter, her successor Bruce Harrell was far more skeptical.”HTH.
Purple Pilot April 22, 2026 (8:13 pm)

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Derek, looking at the timing here…wasn’t this audit commissioned under Bruce’s watch?
- My two cents April 23, 2026 (4:52 am)
  
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  @purple pilot How am I going to reinforce my assertions and narrative if you keep bringing up facts?
  - Little One April 23, 2026 (8:52 pm)
    
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    LOL. Hey, wouldn’t it be something if continuous work could be done under two different city leaders? One commissions the audit, the next uses the results to do something about it?
- don'tblockme April 23, 2026 (6:56 am)
  
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  Correct, this audit began while Bruce Harrell was in office. Mayor Wilson had nothing to do with the audit.
  
  “Clark Nuber P.S. (“CN”) was engaged by the City of Seattle (the “City”), in coordination with King County (the“County”), to conduct a forensic evaluation of the King County Regional Homelessness Authority (“KCRHA”)covering the period from mid-2021 through July 31, 2025.”
Reedor April 23, 2026 (5:28 am)

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HE did: according to a review of the agency commissioned by the city and county before she took office (the forensic evaluation was launched August 2025) The current mayor is following up with accountability, as would Harrell had he been re-elected.
Derp April 23, 2026 (10:01 am)

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This audit was started under Harrell, not sure what info you have and where you are getting it.

Peter S. April 22, 2026 (7:50 pm)

Not a fan of Katie (yet), but I’ll give her credit for bringing this long-suspected problem out of the shadows. As several others have pointed out, this should’ve been tackled long ago. but suggestions of doing so were labeled as “discriminatory”, “exclusionary”, etc. The same treatment should be applied to multiple governmental agencies. Sound Transit would be a good start.

Charles Burlingame April 24, 2026 (4:18 pm)

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You can look at the state’s audits and reviews of Sound Transit online. https://sao.wa.gov/reports-data/audit-reports?en=Central%20Puget%20Sound%20Regional%20Transit%20Authority&MCAG=0987&StartDate=&EndDate=

Erik April 22, 2026 (7:52 pm)

We really need a new Auditor.

Joe April 22, 2026 (7:58 pm)

Go look at some of their salaries. It’s public record. There are a lot of fat cats in that agency. When someone is making $200K/year, do you think they’re incentivized to solve the homeless problem? If they did, they would eliminate their jobs. It’s actually quite the opposite. They want to keep that gravy train going.

RickB April 22, 2026 (9:33 pm)

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Joe, just curious, would you make the same statement about the police? There are plenty of fat salaries being paid to cops, so do you feel they’re incentivized to solve crime?
- anonyme April 23, 2026 (3:49 pm)
  
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  The police that are making “fat salaries” are doing so because the lack of staffing and mass exodus of police following the defund movement led to massive amounts of mandatory overtime. Not the same thing at all, although there are plenty of fat cats at all levels of government. The bloated bureaucracy (aka “homeless industrial complex”) surrounding this issue is not only self-perpetuating, but a direct obstacle to actually solving the problem.

onion April 22, 2026 (8:14 pm)

I hope someone articulates and implements a detailed plan to prevent this kind of negligence from happening in the future. It’s one thing to mouth platitudes about improved oversight and more effective spending. it’s another thing to make them happen.

Rob April 22, 2026 (8:59 pm)

I’m the controller for a very large contractor. I could find the missing funds in a week. How did they pass any single audit? This is pure theft and fraud.

T Rex April 23, 2026 (7:12 am)

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Great comment Rob, I would love to be able to see if the folks who have “misplaced” this money are living a little above their means as well. If someone is doing a money grab, they are usually stupid enough to buy lots of “toys”.

B April 22, 2026 (9:14 pm)

In addition to lobbying to lift the 1% cap on property taxes, KCRHA is currently exploring the possibility of putting a new levy on the ballot to ask for even more money. Why in the world would I vote to give more tax money to an entity that can’t even perform very basic fiduciary functions. The cost of our sales tax and property tax stings, and I do not appreciate that money being wasted, and potentially even being fraudulently used, by KCRHA.

jissy April 22, 2026 (9:19 pm)

I’M SHOCKED!!!! Said no one ever.

flimflam April 23, 2026 (8:14 am)

After that whole Dones debacle wasnt it clear enough that the entire organization was a complete mess?

Seattle Resident April 23, 2026 (8:31 am)

Didn’t this happen under former King County Exec Dow Constantine’s watch? It’s amazing to me how a politician can fail up, more than double their salary with zero accountability and move on to sunnier pastures. Marc Dones was hired to run this organization and left under a cloud. Since then our unhoused population has increased with no solution in sight.

snowskier April 23, 2026 (8:53 am)

Thanks to Harrell for initiating this audit. Thanks to Rivera and Kettle for having the mettle to see the findings and call for an end to this failed experiment. Join with them other council members and close the checkbook to stop wasting OUR MONEY. Sometimes you need to cut your losses, move on and start over with a different approach.

Cranberry April 23, 2026 (10:08 am)

Homeless Industrial Complex, a sinkhole for our money. I am grateful to our new mayor for acting on this corruption. We all need to be vigilant about how our taxes are spent instead of approving every request for more money.

Pete April 23, 2026 (12:59 pm)

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I’m sure there are certain jobs that require it (one offs etc) but the way everything gets outsourced to contractors is so disheartening. They are absolutely going to do as little as they can for the money they receive.

Bill at Duwamish Head April 23, 2026 (11:29 am)

Now I know where my 13% property tax increase this year is going.

DisappointedinSeattle April 23, 2026 (11:44 am)

How is this “again?” possible? Is not MONTHLY accounting and reconciliation, of all accounts, of all organizations the City supports with tax-payer dollars, part of the initial contract? With requirements that accounting books be made available, on demand and at regular intervals, to either roving auditors or internal upward review. Who is MANAGING this City Ship? Where is the financial/accounting management experience residing? Who ‘owns’ setting and managing the fiscal protocols required to be in place, BEFORE and as a condition of receiving public funds? Was not similar multi-mi$$ion woops in recent years within Seattle Public Schools? We citizens keep approving levies and property tax increases, for decades . Seriously – I’m feeling like tax-payer chump rn…..

Pookie April 23, 2026 (1:58 pm)

The King County Regional Homelessness Authority (KCRHA) was founded in December 2019 through an interlocal agreement between King County Executive Dow Constantine and Seattle Mayor Jenny Durkan. The agency was created to unify homelessness services, with early planning led by Marc Dones as the founding CEO. Marc Dones, the former CEO of the King County Regional Homelessness Authority (KCRHA), had an annual salary of approximately $247,200 to $250,000. Dones served as the inaugural head of the agency from 2021 until their resignation in May 2023. Following their departure, they entered a separate $250-an-hour city contract.Looks like Fraud to me. What a great salary on the Tax Payer Dime to do absolutely nothing for nearly a decade now.

m April 23, 2026 (2:58 pm)

This is almost as bad as all the millionaires running around not paying their fair share.

Jordan April 23, 2026 (3:11 pm)

This is the tip of iceberg. The homeless industrial complex now makes far too much money for far too many entities to be interested in solving the problem. And if anyone has the audacity to ask where taxpayer money has been spent as we continue to spend more and more money with increasingly worse outcomes then you aren’t compassionate. Every election year, the same type of politicians say the same things which is the problem isn’t what we’re doing. The problem is we need to tax and spend more. $13 million dollars of taxpayer money is gone. Where did it go?

k April 23, 2026 (3:26 pm)

Wow, what a report. Glad Wilson began the move toward managing homeless programs directly through the city as soon as she started. We’ll get a little more of a head start from that action. I want to point the finger at fraud, but it’s unclear that anyone was really trying to enrich themselves on any real scale. Mostly gross incompetence and the accounting practices of a teenager. I think the existence of that board and other recent projects have shown that the city and county can work together toward a unified homelessness response, without the separate board. KCRHA needs to be scrapped.