Sleeping outside is a crime. Sleeping inside is trespassing and also a crime.
Now, I can't find legal text specifically banning that sort of thing, but that definitely seems like a "bill of attainder" and against the spirit of the 8th amendment to to the US constitution. Of course, I know the courts don't actually care, but if they had spines they would.
Build more housing, build different kinds of housing, build housing that has built-in social worker and nursing help, make it government owned and non for profit