"He claims that the limits imposed by the city are unacceptable because "The whole idea of reaching out to the poor and needy is part of our Jewish tradition.""
I think the best idea for the Temple members would be to each take a "homeless family" into their own private homes - reaching out to the poor and needy necessarily demands a personal sacrifice of time, money, etc.
On the air I pointed out to Rabbi Mirel that very few of the temples leadership and members live within the quarter-mile radius of the temple that experience tells us will be deleteriously impacted by the presence of a crowd of indigent squatters. This meant that others would bear the burden of the temples pick-and-choose piety.
Lapin hits the nail on the head right here, folks!