Congresswoman Nicole Malliotakis called on April 24 for the U.S. Department of Justice to investigate no-bid contracts related to many New York City homeless shelters, citing concerns about accountability, oversight, and high costs to taxpayers. Malliotakis said her research found excessive per-unit costs at shelters in her district and pointed to recent indictments as evidence of potential corruption.
The issue is significant because the New York City Department of Homeless Services spends $8 billion annually on shelters, many through no-bid contracts. In some cases, monthly costs per unit are far higher than average rents or mortgage payments in the area. According to Malliotakis’ findings, these costs reach over $9,000 per month at specific sites while typical rent is about $1,698.
A criminal indictment unsealed by the U.S. Department of Justice on March 31 charged four individuals linked to a nonprofit operating city shelters with stealing approximately $1.3 million from taxpayer funds and steering millions in contracts for bribes and kickbacks. A yearlong investigation by the New York City Department of Investigation uncovered widespread mismanagement and nepotism within the city’s shelter system, according to an Associated Press News report.
Malliotakis said: “New York City’s shelter system has become a business, with lucrative contracts costing taxpayers much more per unit than they would pay for monthly rent or mortgage payments.” She added that leadership changes have not improved conditions: “Since Bill de Blasio, the shelter population has doubled—and now Mayor Mamdani is proposing even more shelters in our district and across the city with shady contracts to questionable operators.”
Other elected officials joined her call for action. Senator Jessica-Scarcella Spanton said there must be a prompt independent investigation when allegations of misconduct arise: “There is no room for corruption in government… especially when it could have real and dire consequences for our hardworking constituents who live and work here.” Senator Steve Chan described developers as predatory: “We have predatory and deceptive… developers of questionable characters… I commend, and join Congresswoman Nicole Malliotakis in calling for federal inquiry.” Assemblyman Sam Pirozzolo also supported an investigation by the DOJ as warranted.
Assemblyman Michael Tannousis raised concerns about transparency: “These shelter contracts raise serious red flags… We’re seeing skyrocketing costs, a lack of transparency…” City Council Minority Leader David Carr said that recent indictments should raise public alarm about other possible wrongdoing: “Congresswoman Malliotakis is right to call for the DOJ to further investigate whether there has been fraud, waste and corruption in this murky homeless shelter contracting process.”
Nicole Malliotakis currently serves as U.S. Representative for New York’s 11th District after replacing Max Rose in 2021 according to official records. She previously served ten years in the New York State Assembly as reported by Ballotpedia. Born in New York City in 1980 at age 42 she lives on Staten Island according to biographical information, having graduated from Seton Hall University (BA) before earning another degree from Wagner College.
