Given that our current fixes are not working. Building a home for them is a great way to go. But putting the homes randomly through the city is a problem. They should be built in a complex like system. Where people can have their own space and be close to services they might need and hopefully get rehabilitated.
This is the place where innovation needs to be applied. We don't need another chat app or Facebook. There is no app for this. No matter how you look at it it's a hard problem to fix but it would be nice to put a dent on it.
Here's a place to start, how do we make it easier to build new affordable/tiny homes in large cities like LA and San Fran.? For that matter just getting the permits. Adding supply would bring down prices and help with the problem.