Success?

What happens when you take 30% of the buildings in a city core off the market, and house homeless people, drug addicts, and people who can't really afford to live in the city there?

Here's the quote from the Tenderloin Neighborhood Development Corporation's newsletter:

Thirty years later, we can declare victory: 30% or more of the Tenderloin is owned or controlled by nonprofit and public entities, and the threat that the neighborhood will transform into an exclusively middle class enclave is much diminished. Quality of life, not gentrification, is today’s primary issue.

I repeat the claim I've shouted before... wouldn't it be more cost effective to house these people somewhere besides the most expensive real estate in the country?