This paper aims to contribute to the literature with a case study on institutionalisation of public-service knowledge-networks. It stems from a four-year doctoral research dealing with institutionalisation processes (IPs) of institutionalised nursing homes in Latin American cities. The paper will first bring a theoretical background on profound social change through network formation for community building purposes. It will draw from Giddens' structuration model from the Barley and Tolbert (1997) perspectives. This will allow observing social capital construction and its role in building networks, organisations and institutions in emerging knowledge-oriented public service contexts. The paper will depict action-learning as the main methodological approach, using a practitioner-based qualitative analysis of institutional processes. Networks that include families, nursery shelters, funding and childcare entities amongst others, would be identified and expected to link with policy-makers and authorities, in order to consistently prevent the perverse effects of homelessness: violence, abuse and social exclusion in our cities.