New York City is in the midst of a homeless crisis that is unparalleled in modern times. Since 2007, the number of families with children relying on the City Department of Homeless Services ("DHS") for shelter has swelled by 68 percent, from 7,624 families in August 2007 to 12,828 families in August 2016. In October 2016, the total shelter population hit a record 60,059 people, a figure that includes 23,598 children. Among this already vulnerable population, one group that stands out as being at extreme risk is homeless children, with those under the age of three facing unique challenges. Recent data from DHS shows that 13 percent of the residents in the City's shelters for families with children are children under three years of age. Given that the average length of stay in shelter for families with children is now 412 days, these young children are spending substantial portions of their early lives in DHS shelters. To better understand how the particular needs of homeless children under the age of three are being addressed, the Office of the Comptroller conducted a wide-ranging investigation into the provision of child care services within the DHS shelter system. This investigation concluded that a woefully inadequate regulatory structure results in children under three lacking the critical care and education services that are so important for their future. (author abstract)