Impoverishment and homelessness are issues that society, and capitalism at large, refuse to address with real solutions. Those solutions are too expensive to those that make policy.
A housing crisis, a depression of wages and rise in cost of living, inaccessibility of timely and cost-efficient health care interventions (mental or otherwise), inaccessibility of drug rehabilitation and a system that punishes drug use criminally, and having no social safety net (to prevent such occurrences of homelessness and lack) is the recipe that creates the situations that these individuals experience.
The headline is not accurate, read the article.
Nowhere in the article does it suggest that one needs to be psychotic or schizophrenic, only that they appear mentally ill to first responders. They are not able to diagnose this.
Even if you refuse to read the article, the subtext here on Lemmy reads:
There are economic and societal reasons for individuals to not be able to meet those needs.