The Seattle City Council voted unanimously Tuesday to approve a resolution charting next steps for the troubled King County Regional Homelessness Authority (KCRHA).
The KCRHA resolution, sponsored by Seattle Councilmembers Alexis Mercedes Rinck and Dionne Foster, gives the Seattle Mayor’s Office until August 1 to recommend whether to restructure, dissolve, or continue the embattled homelessness agency.
“Now is not a time for knee-jerk reactions,” Rinck said ahead of Tuesday’s vote. “Our homelessness response system is already in a delicate place and needs to be handled with caution.”
Calls to dissolve King County homelessness agency grow louder
In April, Seattle City Councilmember Maritza Rivera and King County Councilmember Rod Dembowski announced they would issue companion resolutions calling for the dissolution of the KCRHA.
The two council members said the findings raise serious concerns about financial oversight at the agency, which was created in 2019 to address homelessness across King County. Auditors said they could not rule out whether any of the missing funds were stolen.
Rivera voted in favor of the Seattle City Council resolution on Tuesday, but said it is time to break up the agency.
“I really feel strongly that the time has come to pivot to a different strategy,” she said. “We can’t keep throwing good money after bad.”
$13 million mismanaged amid $45 million deficit
The 9-to-0 Seattle City Council vote follows an April forensic audit that found $13 million in taxpayer funds were mismanaged amid a growing $45 million deficit within KCRHA.
An investigation was launched due to operational and financial issues at the agency, including leadership turnover, late payments, findings from the State Auditor, unverified accounting of cash advances, cash flow challenges, and overspending on administrative resources, according to the mayor’s office.
“Addressing homelessness is my highest priority, and I have serious concerns about KCRHA’s management of city funds,” Mayor Katie Wilson stated after the audit was released in April. “We need to take swift action to protect public dollars. All options are on the table.”
After the findings were released, auditors said tracing the mismanaged $13 million would be difficult due to poor bookkeeping.
“The accounting records are such that the details around receivables are not traceable because the supporting information isn’t there,” lead auditor Mike Nurse said.
What’s next for King County agency
KCRHA will come before the Seattle City Council’s Human Services, Labor, and Economic Development Committee meeting on Friday, June 5.
The agency will discuss the corrective action plan that was submitted on May 22, Rinck said.
This story was originally posted on MyNorthwest.com
Contributing: Luke Duecy, KIRO Newsradio; Julia Dallas, MyNorthwest
Frank Lenzi is the News Director for KIRO Newsradio. Read more of his stories here.
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