Saritha Komatireddy, a candidate for New York Attorney General, has criticized Letitia James for not holding nonprofit homeless shelter providers accountable despite ongoing audits and investigations. A report by the New York State Comptroller in March revealed that New York City spent approximately $81,700 per unsheltered homeless person in fiscal year 2025, with spending on street homelessness tripling since 2019 and the homeless population increasing by 78%. Komatireddy described the situation as a crisis, stating that government spending has increased while outcomes have worsened. She emphasized that James should be investigating the misuse of funds in the homeless shelter system.
The New York City Department of Investigation, the New York State Comptroller, and federal prosecutors have conducted investigations that uncovered allegations of fraud and poor oversight at city-funded homeless shelters. Notably, Victor Rivera, CEO of Bronx Parent Housing Network, was indicted on multiple charges related to a kickback scheme and has been accused of sexual misconduct.
A recent Department of Investigation review identified issues such as nepotism and high salaries among shelter providers, with some executives earning over $1 million. State Comptroller audits also found millions in unsupported costs at various nonprofit shelter providers. Komatireddy has called for comprehensive audits of all homeless shelter nonprofits receiving taxpayer funding to ensure accountability.
James' office has taken limited enforcement actions against nonprofit homeless shelter providers during her tenure, including a settlement requiring governance reforms and a lawsuit against Housing Bridge Inc. for alleged asset diversion. A spokesperson for James' campaign defended her record, stating that she has worked to protect homeless New Yorkers and hold accountable those who misuse funds.