It's much better to just live out of a tent. Problem is people in squatter tents tend to get ridiculously drunk every night, light their tent on fire accidentally or spend all night screaming and fighting with each other thus police get called and their tent city dismantled.
The Salvation Army from what I've seen has the best system going. You can book 3 months, and they help you with employment. You get your own room and there's not a lot of rules besides no alcohol or drugs allowed in the building. This is where most of the homeless go who fell through the social safety net for whatever reasons, and they can save 3 months of income to get back on their feet whereas the addicts, chronic homeless by choice, and mentally ill are the ones in tent cities.