Housing and wealth inequality is an undeniable issue. So is anti-social behaviour. You can be poor and even homeless without throwing self-respect out of the window. People are either responsible for their actions, in which case criminal and civil charges are on the cards, or they are not (due to mental illness and/or substance abuse) and need to be institutionalized.
Wouldn't poo-cassos be better framed in an institution cell away from the other 90% of society? That way they can get the mental support they need and rebuild their agency. If you don't have agency, you need conservators to help you address it. For children, those are parents. For adults, that's the state.
Otherwise we're admitting participation in a society is pure benefit without any responsibilities.