Most of the people in the first category don't really cross paths with the chronic population- they have friends or family who will take them in for a bit, and

Most of the people in the first category don't really cross paths with the chronic population- they have friends or family who will take them in for a bit, and likely already have access to a bank account and other myriad things that the chronically homeless do not. Focusing on the episodically homeless may be a better way to prevent more becoming chronically homeless; they may not have as many of the barriers (deeply seated drug addiction, mental illness, fear of being involuntarily committed) that is more prevalent among the chronic homeless, but I imagine they are more likely to quickly burn through their social network good will than the first category.