Letitia James faces scrutiny after New York City spends $81,700 per homeless person amid shelter scandals

New York Attorney General candidate Saritha Komatireddy is accusing Letitia James of failing to hold New York's nonprofit homeless shelter providers accountable despite years of audits, investigations and scandals involving billions of taxpayer dollars.

The criticism comes as a New York State Comptroller report in March found New York City spent roughly $81,700 per unsheltered homeless person in fiscal year 2025, with spending on street homelessness more than tripling since 2019 as the city's homeless population climbed 78%.

Komatireddy described the situation as a crisis, arguing that government spending has surged while outcomes have deteriorated.

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"So there really are questions about what has happened to that money and why that's happening," Komatireddy told Fox News Digital. "The person who should be asking those questions, the person who should be investigating, is the attorney general. But Letitia James has totally failed New Yorkers when it comes to holding homeless shelter nonprofits accountable so that they actually help the homeless."

Her criticism follows years of investigations by the New York City Department of Investigation, the New York State Comptroller and federal prosecutors that uncovered allegations of fraud, self-dealing, kickbacks, conflicts of interest, excessive executive compensation and weak financial oversight at organizations operating city-funded homeless shelters.

Among the highest-profile cases was that of Bronx Parent Housing Network CEO Victor Rivera, who was accused by at least 10 women in a 2021 New York Times investigation of sexual assault or unwanted sexual conduct while they lived in shelters operated by his nonprofit.

Weeks later, Rivera was federally indicted on conspiracy, wire fraud and money laundering charges tied to an alleged kickback scheme. He pleaded not guilty.

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A 2024 Department of Investigation review found nepotism, lack of competitive bidding and exorbitant salaries were issues among 51 city-funded shelter providers, including executives earning salaries approaching or exceeding $1 million. The report specifically noted that the attorney general has authority under New York law to challenge improper transactions involving nonprofit organizations.

State Comptroller audits also 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, with follow-up audits finding that many recommendations remained unimplemented.

Komatireddy argued those repeated findings should have prompted broader action by the attorney general's Charities Bureau, which is responsible for overseeing nonprofit organizations in New York.

"The amount of money that's being spent is really shocking," she said. "We know that at least one homeless shelter CEO received a million dollars in compensation. Meanwhile, New Yorkers are sleeping on the streets."

"It's the attorney general's job to audit and investigate the homeless shelter nonprofits," she continued. "We have a Charities Bureau in the attorney general's office whose responsibility is to oversee and supervise all nonprofits in the state, but Letitia James has not been doing that job."

James' office has publicly announced only a handful of enforcement actions involving nonprofit homeless shelter providers during her tenure.

Among them were a 2022 settlement with HELP USA requiring governance reforms following a Charities Bureau investigation into conflict-of-interest issues involving former CEO Alan Altheide and a 2023 lawsuit seeking to dissolve Housing Bridge Inc., alleging its executives diverted charitable assets for personal benefit.

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Komatireddy called for audits of every homeless shelter nonprofit that receives taxpayer funding.

"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."

The homeless shelter criticism is the latest in a broader campaign argument from Komatireddy that James has failed to aggressively police taxpayer-funded fraud.

Earlier this year, Komatireddy criticized James' oversight of New York's Medicaid Fraud Control Unit after federal officials suspended its funding, alleging the attorney general had adopted "a deliberate leadership choice" to pursue fewer criminal fraud cases and allow investigations to languish.

James' campaign rejected the criticism.

"Saritha Komatireddy's latest line of attack is as hollow as her record of public service," a campaign spokesperson said. "While Saritha is busy playing politics, New York Attorney General Letitia James has spent over two decades working hand-in-hand with government partners across New York City and state to protect homeless New Yorkers and hold bad actors accountable."