This is good advice, but (speaking to OP here) having gone through this with a family member, I'd council your friend to understand that nobody has the interests of their family member in mind like they do.
To get a good outcome she'll need to be pushing the ball forward at every step. Don't wait for the social worker to do anything and don't accept their initial results or recommendations as final. There is a wide range in quality of institutions, even for patients requesting a Medicaid bed (perhaps especially for such people). My family member's first stop was a nightmare. She's in a much better facility now (a change that simply would not have happened without my outside influence).
Call places yourself, speak to local doctors, if you can. Call home health services that accept Medicaid and ask if they can give you advice. Cold call nursing homes and ask if they have Medicaid beds. These are all things I did and they all mattered in the end. Push, push, push.
That should open up money, assistance and housing. There may be a wait list but he should be able to get into assisted living or some sort of supervised independent living. Some states and counties are better than others.
Her best bet is to find a social worker who can help. Start with the county and the state. Does she have power of attorney and is she his legal guardian? These are some things to think about. If not, the state can become the legal guardian etc... and then she doesn't have to worry so much about him. All of the "senior" housing have subsidized rooms. They may take all of his social security but he will get a room and food.
As for which States are better than others, I don't know.
As for the felonies, I would consult a lawyer, legal aid or the district attorney to see if they can be mitigated for the purposes of public assistance. There may be some programs that, if you prove, no longer a danger, rehabilitated etc.. will help you, especially considering his disability.
Check out:
https://eldercare.acl.gov/Public/Index.aspx