It seems there is more substance than I thought to the charge that Indiana has a policy that recommends homeless shelters as an option for people with developmental disabilities. According to a report from TV Channel 6 in Indianapolis, a discharge plan form is given to people who are either not eligible for services or who choose not to receive services. The form lists a Homeless Initiative Program as a resource and refers to a list of homeless shelters.
My guess is that people who "choose not to receive services" do so not because they are particularly fussy, but because the services offered make no sense for their family member or are of such poor quality that nothing is better than something. As for people who are not eligible for services, we might be surprised at the severity of the problems people have who have been rejected by the system of care for people with developmental disabilities.
A spokesman for the Indiana Family and Social Services Administration acknowledges the existence of the discharge form, yet still denies that homeless shelters are offered as an option.
So the real scandal is all those things listed below, plus evidence that Indiana has a policy of offering homeless shelters to at least some families as options for their developmentally disabled family members.