I believe cannabis is the answer to reducing homelessness, not just in San Luis Obispo but on a global scale. I picture cannabis ranches that house and employ homeless people exclusively. They have a private room, get paid to work, and learn a life-long applicable trade, while getting to use all the cannabis they want. No other drugs or alcohol would be allowed.
If this was effective at reducing homelessness, it's hard to imagine government officials not supporting something that reduces homelessness and also makes them look progressive at the same time.
I spent most of 2020 homeless in SLO, and I stayed in the creek while it was cleared out. I interacted directly with homeless people, police officers, and the Prado shelter, and definitely saw a lot of interesting things.