Any attempt to establish a short term housing prompts multiple questions. For example, do you allow drunk people in? If you don't, you leave a lot of people on the shore. If you do, you end up with drunk fights and vomit on the stairs.
Go figure.
Go figure.
As an aside, they are perfectly good neighbors. As is the studio apartment complex next to it, that is a single tier above the SRO. I have a lot more trouble from the fast food wing place on the other side of the block than I've ever had from my neighbors.
But you can't build things like that anymore; you get shut down if you're not meeting all the "minimum requirements" and so the people who at least used to have a heated room out of the weather are now living rough.