https://www.latimes.com/california/story/2023-09-14/california-homelessness-epidemic-licensed-tent-villages
The camps are managed by Urban Alchemy, the San Francisco-based nonprofit that has rapidly grown into a multimillion-dollar street services enterprise and embodies an elastic philosophy of shelter.
Aggressive marketing aligned with rising public discontent over homelessness made for a winning strategy. By 2021 it reported $51 million in revenue primarily from contracts for street outreach and shelter operations in San Francisco; Austin, Texas; Portland, Ore.; and Los Angeles.
In this scenario, the homeless pay to be put in the camps. It'd be "socialist" to let them stay there for free.
And since it's a non profit, the company can avoid any pesky taxes.