It's not just the financially strapped or the mentally unstable. It is also the criminal element, the ex cons that are not rehabilitated but have reached the end of their sentence that are released back into society without skills or ability to become gainfully employed. That have a propensity to commit further crimes because it's what they know.
Local law enforcement is only concerned with their local jurisdiction so as long as they can get that criminal element to move on, that is LEO's job well done. The Nation's police, U.S. Marshall's and FBI should be addressing some of these matters more intentionally but they're too busy chasing down phantom fake voters and providing protection and transportation to the Director's girlfriend and making sure the Felon's name doesn't come up in the released Epstein files via multitudes of law enforcement employees reading and redacting the Felon's and his friends names from said files. Unless of course they don't pay tribute of some sort at which time that information might be released.
Anyway, these encampments must be monitored. At the very least, the criminal element. I know in California, laws have been passed against sex offenders, preventing them from living within a certain distance of school zones, which is a good thing. But, with limited funds and lack of employment, many live in these encampments by default which makes it difficult to keep track of them. By not providing a system of rehabilitation following incarceration, we are defaulting to this underground system.
Just my two cents.