Poor people deserve a free house that's nicer than all of ours given to them
We've been debating this for years
At over double the cost of normal social housing, they are in the end not helping the problem, as less people are getting homes for a lot more funding, which will not be coming again.
For the few hundred million (which most certainly is a one-time funding) they are spending, they could build one hell of a big building, with many times the units.
That and, giving people homes actually does nothing to solve the root cause of homelessness, but is an easy political victory to the bleeding hearts.