I havent seen that episode, but it is kind of an issue how whenever you try to put a bunch of poor/homeless people together, others start to avoid that area and jobs/services become scarce.
I like the idea of "mixed income housing". Apartment buildings with a mix of free, cheap, and regular priced units. The standard units would probably be valued a bit lower than the normal market price, giving mid-income people an incentive to live there, and the homeless people who move in get to be part of a normal-ish community.
100 homeless people stuck in one place can cause a lot of chaos, but a small small group here and there seems a lot more manageable.