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How did that work when it came to deciding who gets the more desirable housing versus the less desirable ones? Or those who are not from the area and don't pay taxes to cover the housing?
Let's work on getting people housed before faffing about with pointless nonsense like more or less desirable housing. When even the victorians has lower homelessness rates you don't get to worry about desirability.
Second point, who cares? If they're living there now they pay tax there now. It does not matter they didn't pay tax before they lived there, that's how all other services work. You don't pay for the roads in a town you just moved to until you're moved in.
It's not pointless. Depending on where you live, there's a good chance you do have an abundance of cheap housing available. They're just not in desirable locations, so many would opt to either pay extra for the privilege of living in more desirable homes or even living on the streets.
Regarding taxes, I'm talking about those who haven't previously paid taxes, are not currently paying taxes while living in the area, and have no plans to pay taxes after they leave the area.