Criminals are housed and fed in exchange for staying away from regular society.
The disabled are housed and fed in exchange for not having to watch them die of starvation in the streets.
Having these institutions be nice places to live is secondary to their primary goals. Most of the time they’re out of sight, out of mind.
You’re forgetting who this is supposed to benefit.
I think the plan is to have the charity buy at above market rates and then rent them back to the church for a pittance.