Citation very much needed here. This certainly does happen. But, I don’t believe this the general (i.e. typical) outcome. From what I understand talking to acquaintances who work in this area, wrecking the place is not the typical outcome. And property damage is generally cheaper to address than the constant provision of emergency services.
I agree that mental health (and substance use) are major factors in homelessness, but those issues are more or less impossible to address when people are living on the street with no permanent address and no place to keep e.g. a cell phone without it being stolen.