The cruelty is the point, they should be punished for their lowlyness.
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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!
It's not always the case of a bed existing, in NYC a lot of people would rather sleep on the street because the shelters are often unsafe or unsanitary. That's excluding people who have psychological issues who don't want to enter into the shelter system for different reasons.