Here is the correct piece of news from the LA Times. The link in that blockquote of Patterico's did not contain the proper information bolstering the arguments I have made on behalf of the police, citizens and businessmen who have to deal with the crime of the dumping zone called Skid Row.
This was a compromise that hasn't resolved the problem. It remains. Here is another article that illustrates varying approaches to solutions. Joseph Mailander proposed New Yurt City. I like the idea and furthermore I would extend it as a kind of microlending solution. In other words, I would grant a sort of partnership / ownership of a yurt. Let's say that the city owns 51 percent of each yurt and that the city or county also subsidizes a grant for the person 'buying' in. As they get on their feet and have a job, they move out of the yurt and sell it to the next occupant.
We should keep in mind that this is exactly how Brazil has creatively dealt with favelas, or that seems to be the message among some of the blue sky and semi-radical testimony of Robert Neuwirth. It makes sense to me that some sort of financial incentive be given to users of the yurts and that it is made to benefit the city that these turn over - that people don't squat in yurts permanently, but that some provision be made that they are accommodating to people who might take 3-6 months to be restored to normalcy.