I have no info on the efficiency of this program, it may be good or bad.
Mental illness help is NOT just handholding though. Some mentally ill are so delusional they are dangerous to both themselves and others. That’s when then get really expensive. And with a little help they can some of them can get out of the homeless rut. It could be very cost effective, if run properly.
It won’t be run effectively because the bleeding-hearts are running it AND sucking at the trough/ getting paid to run it. It will not be cost-effective, either, because there will always be more they need. And their advocates will make sure they get that, too.