What ordinary apartment could house populations like this? Since California desires no undocumented slums, as found commonly on a large scale in the South Americas, someone has to build something.
The real danger is similar to totally crooked locals like Phil Tagami in Oakland, who has a "housing project" that has been going for TWELVE YEARS without building anything, nothing. Other crooked people involved, depending on how you define it. If this money results in actual buildings that can handle the intended crowds, that are not prisons, that is progress here.