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Housing First is the correct way to reduce homelessness. The main cause of homelessness is being priced out of the housing market, because the vast majority of housing in America is entirely privatized. Plus most public housing in America is not done nor funded well, until our European counterparts.
The problem in America is the housing market is nearly entirely private, zoning laws that prevent dense housing from being built, and the lack of public funded (nice) public housing. Housing is first and foremost an investment here, not a fundamental right to shelter like it should be.
Drug addiction is a symptom of late-stage homelessness, not a cause. The cause is almost always the private housing market pricing people out of affording even rent.
https://www.pdx.edu/homelessness/housing-first
This has worked famously in Finland
Housing is a human right: How Finland is eradicating homelessness - CBC
Here's how Finland solved its homelessness problem - WEF