New York Attorney General candidate Saritha Komatireddy has accused Letitia James of failing to hold nonprofit homeless shelter providers accountable despite years of audits and investigations into the use of taxpayer money.
A recent state Comptroller report revealed that New York City spent approximately $81,700 per unsheltered homeless person in fiscal year 2025, a figure that has more than tripled since 2019 while the city’s homeless population increased by 78 percent.
Komatireddy described the situation as a crisis, noting that government spending has surged while outcomes have deteriorated. She said, “There are questions about what has happened to that money and why this is happening. The person who should be asking those questions and investigating is the attorney general. Letitia James has totally failed New Yorkers when it comes to holding homeless shelter nonprofits accountable.”
Investigations by the New York City Department of Investigation, the State Comptroller, and federal prosecutors have uncovered allegations of fraud, self‑dealing, kickbacks, conflicts of interest, excessive executive compensation, and weak financial oversight at organizations operating city‑funded homeless shelters.
One high‑profile case involved Bronx Parent Housing Network CEO Victor Rivera, who faced accusations of sexual assault from at least ten women during their stay in shelters operated by his nonprofit. Rivera was later federally indicted on conspiracy, wire fraud, and money laundering charges tied to an alleged kickback scheme and pleaded not guilty.
A 2024 review by the Department of Investigation identified nepotism, lack of competitive bidding, and exorbitant salaries among 51 city‑funded shelter providers, including executives earning close to or exceeding one million dollars. The report noted that the attorney general has authority to challenge improper transactions involving nonprofit organizations.
State Comptroller audits also uncovered millions of dollars in unsupported or improper costs at several nonprofit shelter providers, such as CAMBA, Westhab, the Institute for Community Living, and Samaritan Daytop Village. Follow‑up audits revealed that many recommendations from these findings had not been implemented.
Komatireddy argued that these repeated findings should have prompted broader action by the attorney general’s Charities Bureau, which is responsible for overseeing and supervising all nonprofits in the state.
She stated, “The amount of money being spent is really shocking. We know that at least one homeless shelter CEO received a million dollars in compensation while New Yorkers are sleeping on the streets.”
According to Komatireddy, the attorney general’s job is to audit and investigate homeless shelter nonprofits. She criticized James for not fulfilling that role, citing the limited enforcement actions taken against providers such as HELP USA and Housing Bridge Inc.
Komatireddy called for audits of every homeless shelter nonprofit that receives taxpayer funding, emphasizing the need to support effective operators, cut off those performing poorly, and prosecute individuals who commit crimes.
The criticism is part of a broader campaign narrative that James has failed to aggressively police taxpayer‑funded fraud. Earlier this year, Komatireddy also targeted James’s oversight of the Medicaid Fraud Control Unit after federal officials suspended its funding, accusing the attorney general of pursuing fewer criminal fraud cases.
James’s campaign responded, stating that Komatireddy’s attacks are hollow and that the attorney general has worked for over two decades with government partners to protect homeless New Yorkers and hold bad actors accountable.
