I don't understand why it's chilling. I can see how it could be done badly, certainly, but there is nothing about what I'm suggesting that's prison-like. No one would be locked up, and it would be optional. The idea would be that vulnerable people, or people who've fallen through a net, or people just out of prison, etc., would have an option that doesn't have to entail finding a whole house/flat, and living 100% independently, when often the system makes that impossible. It would be a way of helping people. I'm very left wing and pro-welfare and am seeing it from that POV.
There was a radio 4 face the facts type programme the other day about how people with MH issues can't jump through all the hoops so get sanctioned, and multiple agencies are constantly having to deal with these people ending up in emergency and crisis situations, becoming homeless or ill, etc. A place where people could live semi-communally with support on site is not chilling, it might really help.
The same for people leaving prison - a woman on the radio the other day explained exactly howe she had ended up re-offending 7 times - because every time she was released she had no money and nowhere to go except back into the arms of friends and dealers who would get her straight back on drugs. A halfway house where you can have basic accommodation provided as a stepping stone, with help to get work etc, would help people.
A kneejerk reaction that this idea equates to a "prison" or a "workhouse" is not very helpful. If we can't contemplate new potential solutions because any form of having people live together is a "workhouse" then no wonder there's so little progress.
And yes I do think architecture has a massive role to play and I also lay a lot of the US's social problems at the door of their approach to urban planning, but that's another thread.