I don't disagree with you, but I feel a communal housing with lots of homeless people in close proximity would be deleterious to homeless rehabilitation as the worst examples would negatively effect the best examples in the same way that prison turns a normal person into a broken person that can manage existing outside of that system.

You couldn't even separate the degrees of maladaptions and have productive rehabilitation because there would a point at which you create a oroboros class that would never be capable of rehabilitation in proximity to similar cases that would fester and grow until you need a larger capacity that never really makes progress.

The same sort of thing happens on the streets now. The influence of the worse cases drag down others until you have a common population of bad cases that are decivilized until rehabilitation is almost impossible.

A more separate and isolated rehabilitation program would allow for a greater ability for improvement in a vacuum devoid from the detrimental influence of worse or more of the same influence. Obviously that would be more costly and have greater logistical needs, but that is the cost of meaningful homeless rehabilitation.