They are trying to give everyone a plot of agricultural land, not housing. Despite the fact that government polling suggests that something like 98% of people who would be getting redistributed land would rather take a lump sum payment for the cash value of the land instead of the land itself, since it turns out it is remarkably hard work to turn an empty plot of land into a self-sustaining farm. Especially with how little rainfall many of the arid regions in the country get, sometimes it requires a huge amount of grazing land to sustain even a single head of livestock.South Africa tried this with grievous results.
I think the homeless situation could be improved by shipping them out to designated quarantine zones like the West Coast cities where the climate is temperate and they will be able to survive all year round without fear of freezing temperature or heat stroke. Plus the social services infrastructure in those areas is probably better funded in order to deal with the public health and welfare aspect of the problem.