I think the challenge is that some will use it as a jumping of point to change their lives and some will use it to stick to their poor lifestyle habits and expect the provider of the housing to provide free house cleaning, free maintenance and free meals and in exchange be a community nuisance.

The latter ruins it for the former.

As a taxpayer, I would be willing to provide free housing in a lower cost of living area, in exchange for the receiver maintaining the home, no issues with the law and perhaps helping others build their homes, etc.