My sense is that there is room at the shelters, but that shelters have strict rules that many people would have difficulty following. Shelters of course impose structure that many would resist. I can understand the mentality of a person who is dealing with severe mental health and drug issues gravitating toward living at a place like Penn Station to the extent that it is made available to him. Then if there is a contingent of people essentially living in the station without realistic alternatives, how should the police handle that? Very difficult question, but I wouldn't fault someone for arguing that there should be rules against squatting / domiciling in the station, and that the police should enforce those rules. That is a legitimate argument, though not the only one.

The police are already clearing the station to some extent. If they weren't, one would see more homeless people at Penn Station, eventually to the point that the core function of the station would be in jeopardy. I think what we're seeing right now is some unhappy equilibrium / compromise between the interests of train passengers and station residents, as it were.