Corruption in NYC Department of Homeless Services Affecting Veterans

These risks vary in their severity, and include, among other things:

• Conflicts of interest affecting City money. DOI identified cases where insiders at the shelter provider had personal business interests involving the shelter through which they received payments outside their regular compensation.

• Poor City-wide controls over how City money is used for executive compensation. DOI identified multiple shelter executives who received more than $500,000 per year, and in some cases, more than $700,000 per year, from providers and related organizations.

• Numerous examples of nepotism, in violation of City contracts. DOI found shelter providers that have employed immediate family members of senior executives and board members, in apparent violation of their City contracts.

• Shelter providers failing to follow competitive bidding rules when procuring goods and services with public money. DOI found numerous cases where shelter providers did not comply with the City’s competition requirements or where it was unclear whether shelter providers conducted true competitive bidding processes.

Veteran Homelessness and Supportive Services Failures

In NYC, the DHS and Institute for Community Living (ICL) are responsible for transitional housing for homeless veterans. ICL’s facility at Borden Avenue Veterans' Residence, a Veterans Affairs (VA) transitional site in Long Island City, has become a point of concern. Army Veteran Mount Lacy and his service dog Saddie, who moved from Florida in 2023, encountered violence and neglect in the DHS shelter system after expressing dissatisfaction with case workers about limited supportive services and housing resources. Following an assault at Borden Avenue, the service-connected disabled veterans has been transferred between numerous violent shelters while denied access to Veterans Affairs housing resources.

Veterans Being Abused in DHS Shelters

Institute for Community Living reported $188.6 million in revenue in 2023 while veterans at Borden Avenue lacked essentials such as food and hygiene products. CEO Jodi Rudin earned $416,490 plus bonuses, with additional executives collectively making over a million dollars. Despite significant federal funding, veterans struggle to access transportation to VA healthcare appointments and basic supportive services. The entire yearly food budget for Veterans in the Institute for Community Living transitional program is just $539,000/year or a mere $6.59 each per day.

Safety and Service Gaps at Veteran Shelters

Borden Avenue’s environment has raised safety concerns among veterans, particularly during holidays. In one instance, a veteran assaulted on a subway was forced to sleep on the sidewalk after feeling unsafe in the shelter. Although he was VA-eligible, he was denied private space, remaining at risk until management intervened days later. Veterans in this program are often left with little choice: accept placement at Borden Avenue or risk losing VA services. This lack of choice has led to despair among veterans, increasing the risk of dangerous behavior, overdose, and even death. In December 2022, three veterans died within 11 days at Borden Avenue—two from overdoses and one from a hit-and-run near the shelter. The facility’s dark surroundings only recently saw lighting upgrades, illustrating the slow response to safety concerns.

The rigid approach of Borden Avenue’s staff has compounded veterans’ challenges. Many are uninformed about their housing vouchers and receive misleading information about available resources. Case managers’ dismissive attitudes toward veterans’ concerns worsen their mental health, creating a culture of hopelessness.

Broader Accountability Issues

The oversight responsibility for these services lies with DHS and ICL, overseen by Karen Fuller, the Director of Homeless Services at Manhattan’s VA Medical Center. Although the Grant & Per Diem (GPD) program is federally funded as a transitional service, Fuller avoids the term "transitional," a stance seen as minimizing veterans’ needs.

The VA Office of Inspector General (OIG) recently noted that 20% of veterans in federally-funded programs like the GPD are either unaccounted for or reported as “successfully transitioned” when they are not. DHS’s inability to provide adequate services compounds the challenges veterans face, risking further deterioration of mental and physical health.

The Need for Systemic Change

The findings underscore deep-seated corruption and neglect in DHS, affecting the lives of veterans who depend on stable housing and supportive services. These lapses in management and accountability can lead to tragic outcomes, as veterans may resort to living on the streets, enduring violence, or worse.

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About the Author

Navy Veteran and advocate Timothy Pena moved to NYC in July 2022 to collaborate on a documentary on veteran suicide prevention. His experiences as a homeless veteran in NYC inform his advocacy work, including his articles on transitioning from homelessness, testimony before the NYS Department of Veterans Affairs, and his role in the NYC Veterans Task Force. His journey highlights the need for urgent reforms in how veterans are supported by the city’s shelter system.