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Federal government bypasses Ontario, offers money directly to Toronto to end encampments
(toronto.ctvnews.ca)
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As someone who lives beside an urban park with a lot of people tenting in it, I do hear what you're saying, and we do need to do both: house people who can accept it, and incarceration--humane, safe and rare--for people who can't.
I think we definitely need care homes for people who are on their own and unable to make those decisions for themselves. I have a cousin who lives on the street, despite having a family and home he's welcome to. He just can't handle a normal life with a job and a regular address, he finds it easier to just live on the streets and be accountable to nobody. He needs help but he'll never accept it willingly sadly