Republican candidate Saritha Komatireddy has criticized New York Attorney General Leticia James for allegedly failing to hold nonprofit homeless shelters accountable, citing ongoing audits and investigations that have uncovered large sums of taxpayer money misused over several years.
A March report from the state Comptroller found that New York City spent about $81,700 per unsheltered homeless person in fiscal year 2025. The city’s spending on street homelessness has more than tripled since 2019, coinciding with a 78 percent rise in the homeless population.
Komatireddy described the situation as a crisis, arguing that increased government spending has not improved outcomes for the homeless. She called on the attorney general to investigate the use of these funds.
Investigations by federal prosecutors, the state Comptroller, and the city Department of Investigation have highlighted allegations of kickbacks, fraud, and inadequate financial oversight within homeless shelter operations. Reports indicate that many shelters received city funding without competitive bidding and that executive salaries reached nearly $1 million.
In 2024, the city Department of Investigation identified 51 city-funded shelters lacking competitive bidding processes, with unusually high salaries for executives. State Comptroller audits have documented improper spending by several shelter providers.
Komatireddy has called for audits of every taxpayer-funded shelter and has previously criticized the attorney general’s oversight of a Medicare fraud control unit, alleging that federal authorities withheld funding due to a perceived lack of enforcement.
The attorney general’s campaign dismissed Komatireddy’s accusations as unfounded, maintaining that oversight efforts are ongoing and that the city’s resources are being used responsibly.
