It's still only one step above complete destitution. Most people would prefer better and would still work hard.
It's a lot easier for a person to get a job, or beat any personal issues they have if they have a stable, safe roof over their heads. You gotta give people boots so they have bootstraps to pull themselves up by.
If you can afford to keep people afloat, you should do it. The less complicated and less strings attached the more effective and cheaper is your solution.
There are people who steer the discussion to those who stay dependent. They claim that some of those are "incentivized" to do so, in other words: they are lazy and greedy. Well that's true, and it's a problem. Primarily because they can be used as an excuse and as a scapegoat to distract from the fact that capital _owners_ are extracting power and value that is generated by workers and small businesses.
What would I do if I were in that position? Be Jeff? I don't know, I'd probably be just as full of myself to believe that I deserve to be treated like a monarch and be able to buy what ever I want, while cheating my business partners, exploiting and surveilling my workers, manipulating my customers and ignoring my responsibilities as a citizen.
Power should be somewhat proportional with responsibility. I'm pretty sure it isn't, not at that scale.
There are 300M Americans. If 999/1,000 people say "hey, free housing is great, but I'm going to keep working" and 1/1,000 people say "hey, free housing! I can just kick back", we now have an extra 300,000 people who are on the dole (almost DOUBLE the current number of homeless).