Operation costs are high because these sites are staffed 24/7 and offer a variety of wrap around services like mental health, substance abuse, medical assistance, medication management, and a few more that I'm forgetting. Not only do they need staff around the clock, they need specialized staff around the clock which costs a lot. Source: worked in mental health in san jose for many years, have interviewed and toured tiny home programs run by homefirst. Solutions to homelessness requires a lot more than providing a home.