[6] The guiding principles of the department were outlined by the New York City Commission on the Homeless in 1992: to operate an emergency shelter system for people without housing alternatives, provide services and resources to assist shelter residents in gaining independent housing, and partner with local agencies and non-profits to provide these services.

[9] Muzzy Rosenblatt, the agency's first Chief of Staff, may have had a role in convincing Mayor David Dinkins that the homeless shelters could be run more efficiently were it a separate department from the New York City Human Resources Administration.

[14][15][16] On April 11, 2016, Mayor Bill de Blasio announced that the department would again become a part of the New York City Human Resources Administration under what he termed "a joint operating agreement".

The organization's recommendations included diverting funds for housing those who are homeless and most at risk of shelter entry, prioritizing capital subsidies for housing for people making as low as 10% of the area median income; semi-annual reports on shelter spending and provider performance; implementing rigorous and effective shelter inspection practices, and overhaul DHS's approach to rental assistance and housing placement.

The exercise of these powers are limited to the employee's geographical area of employment and only while such employee is actually on duty as listed in Chapter 13 subsection (C):[20] NYC Department of Homeless Services special officers are prohibited the use of a firearm as per NYS criminal procedure law, however all officers are equipped with Tasers, expandable batons, handcuffs, flashlight, bullet resistant vest, pepper spray, body-worn cameras, Narcan, and a radio.