That Yuba County project looks like it might be working OK, but it can only work if tightly managed and restricted to the, sadly, small % of people who are not seriously mentally ill and/or chemically dependent. Every day during my commute I drive by what happens to "tiny houses" groups that are not controlled. It's right near where the I-880 and SR87 freeways cross, not far from San Jose International Airport. If one looks at the area with GoogMaps Satellite View on can see that the "tiny houses" are almost obscured amidst blue tarps and bum trash.
Projects like the one in Yuba County can help some people, if people capable of holding down jobs and doing other aspects of ordinary life are chosen for the service. Those unable or unwilling will trash "tiny house" communities. Whether activists and courts will allow the necessary selectivity is, IMO, doubtful.