New York City’s $4B shelter system rife with mismanagement, nepotism, investigators say

Associated Press

NEW YORK (AP) — A yearslong investigation of New York City’s $4 billion homeless shelter system has found widespread mismanagement, self-dealing and nepotism. The Department of Investigation’s review of nonprofit organizations that contract with the city to provide shelter began in 2021. The investigation began before the arrival of tens of thousands of migrants placed additional strains on New York’s shelter system. The report was released on Thursday. A spokesperson for the city Department of Social Services says the department has stopped doing business with a number of providers highlighted in the report. The city spent $4 billion on homeless shelters in fiscal year 2024, up from $2.7 billion in 2022.