I understand your concern, and the validity of it. On a microscale, I was personally involved with helping a Syrian refugee family get established as part of a group I am a member of. It was insulting to sit at the meeting while a few of the members basically played "house" with this family, trying to decide how to get them the cheapest beds and where to get them clothes, instead of just setting them up with the absolute basics and then handing over the rest of the cash and being available to help them with language training and familiarizing them with the city and its services and inviting them to social groups.

But you seem like you have a chip on your shoulder. This person is using his labour, which is twice as valuable as any of the materials he is using, to make something, to help someone. The cure to homelessness is homes, and until the government actually starts caring about people like that, this guy is providing the best homes he can.

If you want me to say "you are right, this isn't optimized for peak efficiency, so why are we bothering." Then I'm afraid that's where we will have to disagree.