And this only for those people who fall in that gap between (approximately) the national low-income line and the local "low-income" line. People who fall below the national low-income line should be given subsidies, regardless of where they live.
I believe in helping people, but not subsidizing irrational behavior that exacerbates an existing problem.
Just think about how this looks to someone like me: the low-income threshold in CA is over twice my household income. And I am not classified as low-income. So to some degree my tax dollars will be transferred to subsidize some terrible decision-making. If this looks bad to me, a liberal, think how it looks to moderates and conservatives!
Let's take this to the logical extreme: suppose I decide to live literally in Hollywood hills, where one of my relatives lives. I make nowhere near enough to survive there. Should I be subsidized anyway? Does it make a difference if I was born in Hollywood and this situation arose subsequently? I think not, when it comes to the question of what should be done about it now, although reasonable minds may differ.