I liked "Town Farms" (the poor house) where they lived onsite, outside of town, in quarters, and grew their own food. Now-a-days, they could even have a state jobs service on the grounds.
Keeps them out of town and away from civilized working people. Whenever the cops encounter some bums....off they go to "the farm".
If a resident decides they want to
(If a resident decides they want to) improve themselves and get a job and their own place....go for it.