New York Attorney General candidate Saritha Komatireddy is calling on incumbent Letitia James to more aggressively investigate nonprofit organizations receiving billions in taxpayer funding to operate homeless shelters across New York City.
The criticism comes amid a New York State Comptroller report released in March finding that New York City spent approximately $81,700 per unsheltered homeless person in fiscal year 2025. The report also found that spending on street homelessness had more than tripled since 2019 while the city's homeless population climbed 78%.
What the Right Is Saying
James' campaign pushed back on Komatireddy's criticism, calling it unfounded.
"Saritha Komatireddy's latest line of attack is as hollow as her record of public service," a campaign spokesperson said. The campaign did not elaborate on specific enforcement actions taken during James' tenure.
During James' time in office, the attorney general's office has announced several enforcement actions involving homeless shelter nonprofits, including a 2022 settlement with HELP USA requiring governance reforms following an investigation into conflict-of-interest issues and a 2023 lawsuit seeking to dissolve Housing Bridge Inc., alleging executives diverted charitable assets for personal benefit.
What the Left Is Saying
Komatireddy, a Democrat running against James in the state attorney general race, argued that the attorney general's Charities Bureau has failed to use its authority to audit and investigate shelter nonprofits despite years of documented problems.
"The person who should be asking those questions, the person who should be investigating, is the attorney general," Komatireddy told Fox News Digital. "But Letitia James has totally failed New Yorkers when it comes to holding homeless shelter nonprofits accountable so that they actually help the homeless."
Komatireddy pointed to repeated findings from city and state investigators as evidence of systemic problems requiring broader action.
"We need to audit and investigate every homeless shelter nonprofit in New York," she said. "Make sure the people who are doing a good job are supported, the people doing a bad job are cut off from taxpayer money, and the people committing crimes are prosecuted and put in jail."
What the Numbers Show
The New York State Comptroller's report found that per-person spending on unsheltered homelessness in New York City reached approximately $81,700 in fiscal year 2025. Street homelessness spending has increased more than 300% since 2019.
A 2024 review by the New York City Department of Investigation examined 51 city-funded shelter providers and identified nepotism, lack of competitive bidding, and executives earning salaries approaching or exceeding $1 million at some organizations.
State Comptroller audits have identified millions of dollars in unsupported or improper costs at several nonprofit shelter providers, including CAMBA, Westhab, the Institute for Community Living, and Samaritan Daytop Village. Follow-up audits found that many recommendations from initial reviews remained unimplemented.
The Bottom Line
The spending figures represent a significant increase in resources devoted to homelessness while outcomes have worsened by multiple measures. Komatireddy is arguing that James' office has not used its legal authority under New York law to challenge improper nonprofit transactions despite having the tools to do so. James' campaign points to existing enforcement actions as evidence of oversight, though critics contend those cases represent a small fraction of documented problems in the sector.
The comptroller's findings and DOI investigations remain ongoing. The next steps include continued audits by state and city watchdogs and the outcome of Komatireddy's primary challenge against James.