NY1 has exclusively learned New York City intends to head to court Tuesday to ask a judge to intervene in the operation of 28 homeless shelter locations run by a nonprofit now under investigation.
The Department of Investigation on Monday morning executed search warrants at the headquarters of Children's Community Services, which has hundreds of millions of dollars in city contracts to operate 28 different shelter locations, including 25 hotels.
The city will now ask a judge to get another provider to take over these locations, which serve 1,900 households.
We are told the investigation is related to potential fraud and is not a result of poor conditions at these facilities.
A spokesperson for the Department of Homeless Services says they are proud that staff members "saw something and said something," making a referral that led to the raid.
DHS officials say they are asking the court to intervene and replace the provider, ensuring all clients continue to receive services.
NY1 reached out to Children's Community Services for comment. We did not hear back as of Monday night.
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