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Our town actually has retrofitted a bunch of old school portables into temporary housing units for the first category of people you reference. People who are temporarily unhoused for 1-3 months. It's not a bad solution although I am not sure how scalable it is. It works for a town of 30k people that doesn't really have much of a homeless issue (although there are some). I don't know if it would work for a city. I do like the idea of trying to keep these two different types of homeless people separate. I remember reading that in Toronto a number of homeless people were refusing to use shelters because the conditions were so bad and dangerous.