How is this a ghetto? This is housing that is more spacious than my dorm room. The current situation is accepting a ghetto to exist on the sidewalks where there is no plumbing or services or shelter or a lock or any semblance of safety.

If you put 10k impoverished persons in a small area then that meets the definition of a ghetto, which is a minority group living in one part of a city. It will gain a stigma, it will become under served by the commercial sector, and those with an address in that area will be treated differently.

It would be better if we could have decentralized housing for the homeless such that they are welcomed into more affluent communities and their financial status can be kept private. This is obviously more expensive.

Its not an easy problem to solve.

You already have these areas, in fact the opposite happens. Skid row in LA has been a rough part of town for probably a century. As a result, that's where the vast majority of services are located. On top of that, impovershed people live all over town in CA. Across any arbitrary 500 feet in a CA city you might see one family living in a million dollar+ home, a single family crammed in a tiny apartment, and encampments and RVs spanning the in between. Rich and poor already live on top of each other, this would at least mean the impoverished who are already living in a given neighborhood are housed instead of the status quo which is living in the same neighborhood but in a tarp with no plumbing.

The first 10K or so units would be for the homeless. But, after that you can rent them out for some small amount to anyone that needs it.

Just imagine, if you're homeless and it's raining. What would you prefer? live in the streets or live in a small micro apartment? Sure, not everyone wants one, but why not give people more choices? Right now, your only choices are this: 2 million dollar condo or 20$ tent under a bridge. Let's give people more options?

You're hand waiving a lot here. Means testing is complex and a 10x10 in SF is valuable enough to bring a lot of bad actors. I'm pointing out that its not as simple as building a 10k occupant building.