Motley, 

The 80 percent temporary and 20 percent chronic are national estimates, not included in this report, which is only about the local situation. 

If you divide the "574 chronically homeless" by the 1,451 total, you get around 40 percent chronic, which is higher than the national average but still a minority. I don't know how you get "85% chronic" out of those figures.

"434 people have a mental illness" and "232 people have chronic alcohol/substance abuse issues" for a total of 666, divided by 1,451 = about 46 percent of the total. Probably most of these would be included in the 40 percent chronic, since some kind of disability, including mental illness and addiction, is part of the "chronic" definition, combined with a long time on the streets. This does not support your description of "mentally ill, alcoholics, and drug selling" as being characteristic of the homeless.

And many cities have in fact been successful in getting them off the streets with "housing first".