According to the news agency, the housing units will be built in Sao Paulo's Bom Retiro district on an area of 16,000 square meters (6 square miles).
The residential blocks with an area of 18 square meters (194 square feet) will accommodate four people each, and will include sleeping places, a kitchen, and a bathroom.
The first-stage rental homes will be primarily provided to families and older people living on the street for more than two years, while the period of stay in the accommodation will be limited to 12-18 months.
In addition to the residential blocks, the city mayor's office promises to build a kindergarten in the area, provide health services, organize vocational training courses, and provide free meals in the amount of 2,000 servings per day.
The number of homeless people in Sao Paulo over the past three years has grown by almost a third, and now amounts to around 31,800 people.