Drafter
Clerk 04/28/2026
Title
A MOTION relating to the King County Regional Homelessness Authority, providing notice of King County's intent to terminate participation in the authority under the Amended and Restated Interlocal Agreement.
Body
WHEREAS, on December 17, 2019, King County enacted Ordinance 19039, authorizing the executive to execute an interlocal agreement for the establishment of the King County Regional Homelessness Authority ("the authority"), and
WHEREAS, the Interlocal Agreement was first effective December 18, 2019, and
WHEREAS, Article III, Section 1, of the Amended and Restated Interlocal Agreement, which was entered into by King County and the city of Seattle in 2024, establishes the initial duration of the agreement of five years, with terms continuing until terminated by either party, and
WHEREAS Article III, Section 2, of the Amended and Restated Interlocal Agreement establishes each party's authority to terminate the agreement by an authorizing resolution or motion of its legislative body, with an effective date of termination not less than twelve months from the date that the King County council's motion or Seattle city council's resolution has been delivered to the other party, unless the King County executive or city of Seattle mayor jointly agree that termination can and should occur more quickly, and
WHEREAS, the authority's utilization of the King County investment pool has resulted in negative cash balances since inception of the authority, and
WHEREAS, the Washington state Auditor conducted a financial statements and federal single audit of the authority for January 1, 2022, through December 31, 2022, indicating a need for stronger internal controls, as existing internal supports did not ensure compliance with federal requirements, and
WHEREAS, a 2022 Monitoring Report developed by the King County department of community and human services found invoice errors, issues tracking expenditures, untimely invoicing, and other issues, and
WHEREAS, the Washington state Auditor conducted an accountability audit of the authority for January 1, 2024, through December 31, 2024, and found the authority's funding model resulted in a negative cash balance at year-end, placing its service levels and future obligations at risk, and
WHEREAS, that accountability audit further found the authority's fund balance sufficiency was negative 24.9 days, while a fund balance sufficiency of sixty days is considered healthy, and
WHEREAS, a forensic audit conducted by Clark Nuber and released April 23, 2026, found the authority lacks internal controls and financial oversight and identified approximately $8 million in unreconciled receivables, $6.4 million in administrative overspend, and $1.3 million discrepancy between internal financial reporting and audited financial statements, among other concerns, and
WHEREAS, the authority has provided essential homelessness services, but has not achieved meaningful progress in reducing the incidence of people living unhoused and unsheltered, and
WHEREAS, King County has an obligation to ensure that public funds are carefully administered to deliver essential public services;
NOW, THEREFORE, BE IT MOVED by the Council of King County:
A. Under the Amended and Restated Interlocal Agreement ("the revised ILA"), the King County council hereby provides notices of its intent to terminate its participation in the King County Regional Homelessness Authority ("the authority").
B. The council requests the executive deliver this motion within five business days of its passage to the city of Seattle, with a copy also being delivered to the authority.
C. The county's termination of its participation in the revised ILA will be effective twelve months from delivery of this motion as requested in section B. of this motion, unless the King County executive and city of Seattle mayor jointly agree that termination can and should occur more quickly.
D. During the twelve-month notice period, the council requests that the executive work with the mayor to jointly undertake the dissolution of the authority to protect the public interest and prevent impairment of obligation under Article III, Section 2, of the revised ILA.
E. The executive should prioritize uninterrupted homelessness response services throughout the notice and transition period.
F. The council requests the executive transmit a transition plan developed jointly with the city of Seattle that addresses:
1. Continuity of homelessness response programs and services;
2. A process for reassignment of county contracts and grants;
3. An update on disposition of assets, resolution of liabilities, and outstanding obligations of the authority;
4. A summary of any workforce and contractor transition issues; and
5. Any budget impacts to King County related to the dissolution of the authority.
G. The executive should electronically file the report requested in section F. of this motion by November 1, 2026, with the clerk of the council, who shall retain an
electronic copy and provide an electronic copy to all councilmembers, the council chief of staff, and the lead staff for the committee of the whole, or its successor.