I really can't imagine how having a tiny home with 4 walls and a door with a 24/7 security guard would be more dangerous than a tent on the sidewalk. I do know that 1-2 people per month get kicked out of the shelter for fighting, but not sure how that compares to life on the streets.
I think a bigger factor is that the tiny homes limit how much stuff you can bring (aka 1 bike per person, cant build your own structures on the land, no drugs, etc), which seems to be the most common reason people gave for not wanting to go.