I don't necessarily disagree, and have no expertise on the subject. But skip to any part of this (excellent) documentary about a 'wethouse' (basically what you describe, a place for homeless
alcoholics to live, drink and socialise) and you'll see abject chaos, violence, misery at every turn. It's probably better than the streets, but not by much.
https://youtu.be/MF5wNsfKo84