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We don’t need tiny houses in seattle, we need functioning 24 hour shelters so people can get cleaned up and get work or help, and we so we can scale the services. Groups of 30 isn’t gonna cut it.
I fully admit I’m no expert on this topic, but it seems to me tiny houses are an awful use of space in a city for low-income housing. Why not just have apartments?
Isn't cost and concentration also a factor?

How do you avoid creating a slum with dense low-income housing?

Seems like highly distributed low-cost, low-unit housing might work decently.