I live in a similar situation in Brooklyn, in an area ripe for shantytown-living.
The commenters who are disgusted at the lack of compassion, while on the morally-correct side of the equation, fail to consider the practical aspects of streets saturated with homeless people. It's at best 'tolerable', often 'kinda scary' and very often 'downright dangerous'[1]. Seeing this every morning and every night, in a walking city, is a drag on public safety and, yes, neighborhood value and progress. Retail and housing suffer when people have to step over passed-out zombies on their way out of their apartments or into their stores.
I don't know what the right answer is, but from my observation it seems that the police and the prisons play the role of the mental health worker and the shelter. The former is more expensive than the latter, but it's easier.
In the article below, it took several dozen overdoses before the police finally cleared the homeless off the street. It's not a coincidence that in New York City, the homeless (and associated social problems like aggressive panhandling and threatening behavior, as well as sexual assaults) tend to hang out not too far from their shelters. The location being referenced below is near several shelters (in a neighborhood that has a huge percentage of all the shelters of the city).
1 http://www.nbcnewyork.com/news/local/NYC-K2-Synthetic-Mariju...