I pulled those numbers out of my ass and you can play with the numbers to change the proportions but the problem still stands. At any one time the system is going to be somewhat saturated with the "problem people".
Now, I don't think that's a problem. If someone thinks they can develop and profitably run SRO housing with a bunch of those people then good for them. But that makes some people feel icky about it.
First, I'm challenging the statement:
> Drug-addicted and mentally ill people do not know how to keep even a moderately organized living space.
Which is nonsense and a damaging stereotype. Drug addicts and mentally ill people exist in all areas of life and many are successful - more so than you or I.
Secondly, I'm challenging you on:
> The theory is the crazy people on the street will suddenly be not-crazy when they get an apartment
Because in fact there is now a great body of evidence that shows that housing-first, that is providing housing with no pre-conditions, is in fact extremely effectively at treating both uncontrolled addiction and untreated mental illness.
Proposed housing units are literally for them.
Dirt is brown.
Therefore, dirt is a cow.