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CITY AGENCYMEDIUM RISK

NYC Department of Homeless Services

Primary City Agency — Homeless Shelter System
CONTRACT EXPOSURE
$3.8B/yr (FY2026 budget)
SHELTERS LINKED
0
FLAGS
3 (0 critical, 2 warning)
ACTIVE INVESTIGATIONS
0
PROFILE

The NYC Department of Homeless Services (DHS) is the city agency responsible for managing New York City's shelter system — the largest municipal shelter system in the United States. DHS directly contracts with over 60 nonprofit and for-profit operators to run approximately 700 shelter sites housing over 60,000 people nightly. DHS's annual budget has grown from $1.5B in 2015 to approximately $3.8B in FY2026, driven largely by the 2022–2024 migrant crisis and chronic family homelessness.

FY2026 BUDGET
~$3.8B
SHELTER POPULATION
60,000+ nightly (2024)
ACTIVE OPERATORS
60+
SITES
~700 citywide
BUDGET GROWTH (10YR)
+153% ($1.5B → $3.8B)
FLAGS & CONCERNS (3)
BUDGET TRIPLED IN 10 YEARS — LIMITED OUTCOME IMPROVEMENT

DHS annual expenditure grew from $1.5B (FY2015) to $3.8B (FY2026) — a 153% increase — while the shelter population has remained above 60,000 and exits to permanent housing have declined as a share of exits.

OVER 60 OPERATORS — FRAGMENTED CONTRACT OVERSIGHT

DHS manages contracts with 60+ separate operators across 700 sites. The Office of Shelter Oversight (OSO) is chronically understaffed relative to the scale of the system.

EMERGENCY PROCUREMENT ABUSE — $2B+ IN NO-BID MIGRANT CONTRACTS

During the 2022–2024 migrant crisis, DHS and DSS awarded over $2B in emergency no-bid contracts to shelter operators including DocGo ($432M) and Bono Group ($96M), bypassing standard procurement rules.

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