I had a few friends who were (occasionally) homeless, and they avoided shelters at all cost. I've heard the same from friends who had experience with or worked in mental hospitals.

Conversely, one of my best experiences was helping with organizing a massive Christmas party for the homeless. It was... surreal and confusing and confronting to see some very 'stereotypically' homeless people dancing and flirting and getting drinks and snacks at the bar like, well, 'normal' people.

I feel that often best things we can do for the homeless and those with mental health issues is to ensure that they feel like full human beings, rather than at best objects of charity or pity. And, as you say, a core part of that is making sure they have as much 'normal' in their life as possible. Having a place to call your own is pretty fundamental to that, I'd say.