Plenty are already downtown near the hotels. It's not like Bean's Cafe is that far away from the Hilton, the Sheraton and others.
Besides, studies have shown that there's a sizeable population of homeless that can be moved out of homelessness if they're provided temporary stability, a sort of "reset". If this program can target mentally and physically capable people and provide them assistance entering the workforce and finding affordable housing could be a very positive thing for minimal cost.

Psychiatric, substance abuse, and other issues obviously complicate the homelessness situation and means its much more difficult to solve.