There are no simple solutions here. I do believe the homeless ought to be assigned housing by making California’s Project Room Key permanent and national. If you can prove some connection to the location where you’re sleeping rough, you get first crack at local housing. Otherwise it’s back to where you have that connection — could even be where you were born.
These motels will be slums. There will be prostitutes, and drug dealers, and crime. But it will also be a central location for service outreach without the prerequisites of other places.