Republican New York Attorney General candidate Saritha Komatireddy accused incumbent AG Letitia James of failing to oversee nonprofits that receive public funds in the homeless shelter system. Komatireddy told Fox News Digital that James had “completely failed” to hold these organizations accountable.
Komatireddy pointed to a report published in March by the New York State Comptroller. According to the report, the city spent approximately $81,700 per street homeless individual in fiscal year 2025. Spending on street homelessness has more than tripled since 2019, while the homeless population rose 78%.
“There are questions about where that money went and why this is the case. It’s the attorney general’s job to ask and investigate these questions,” Komatireddy said. “But Letitia James has completely abandoned her duty to help New Yorkers by auditing homeless shelter nonprofits.”
Millions in improper spending and excessive salaries
Investigations conducted for years by the New York City Department of Investigation, the state comptroller and federal prosecutors have uncovered fraud, nepotism, conflicts of interest and excessive executive salaries at city-funded homeless shelter organizations.
A 2024 Department of Investigation review found a lack of competitive bidding, cronyism and executive salaries approaching or exceeding $1 million at 51 city-supported shelter providers. The report emphasized that under New York law, the attorney general has the authority to challenge improper transactions by nonprofits.
State comptroller audits also found millions of dollars in undocumented or improper spending at organizations including CAMBA, Westhab, Institute for Community Living and Samaritan Daytop Village. Follow-up audits determined that many recommendations had not been implemented.
AG’s limited enforcement actions
During James’s tenure, the AG’s office publicly announced only a few enforcement actions against homeless shelter organizations. These include a governance reform agreement with HELP USA after conflict-of-interest allegations against former CEO Alan Altheide, and a lawsuit to dissolve Housing Bridge Inc. over claims that its executives used charitable assets for personal gain.
Komatireddy called for auditing every homeless shelter nonprofit that receives taxpayer funds: “We must audit every homeless shelter nonprofit in New York. Support those doing good work, cut off bad actors from public funds, and prosecute and jail those who commit crimes.”
Campaign’s response
James’s campaign team denied the accusations. A spokesperson said, “Saritha Komatireddy’s latest line of attack is as hollow as her record in public service. While she engages in politics, Attorney General Letitia James has been working hand in hand with government partners across New York for more than two decades to protect homeless New Yorkers and bring wrongdoers to justice.”
