It costs even less to let them sleep on the street.
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The types of homeless people who are best helped by "housing first" type aid are not the same ones getting arrested/going to prison. Homeless people aren't some big monolithic group you can throw one solution at and have it work...
Even if you're going to overly simplify things you'd at the very least have two groups; the "entrenched" group (more visible and what people think of when talking about homelessness), and "invisible" group (the ones where the factors causing their homelessness are mostly financial).
If we house them do they suddenly become not mentally ill? That's a huge problem in the homeless community alongside drug addiction. We need to house them in mental institutions and rehab centers.
There was a time that people with mental health problems and substance use issues could still afford a place to live. All that cheap housing seems to have gone away.
Absolutely, some people need in patient medical care or rehab. But not everyone. And those often aren't permanent things. Usually in patient care is only temporarily needed and a group home is a better and more scalable long term solution.
But the key is some people. Not everyone needs medical help. For one thing, there's a huge number of homeless people who aren't the stereotypical on the streets type, but rather living in shelters, friends' sofas, or their cars. Some homeless people do just need a little help and way to support themselves or a safety net.
Some people are probably also using drugs to cope with being homeless. It certainly won't be the case for every person, but I'm sure some number can absolutely turn things around after they're no longer homeless (but not before). I mean, things are pretty bleak if you don't have a safe place to live and sustain yourself. Can you really fault people for not wanting to give up drugs that make that shitty situation slightly less shitty?
The cruelty is the point, they should be punished for their lowlyness.
Only because prison is privatized. Gulags are cheap as hell!
Just do what my town does. Pay to put them in a hotel where it's $100 a night for tax payers, they don't get a kitchen or space, but at least it doesn't look like we're giving free homes to them!