On the outskirts of Austin, Texas, what began as a fringe experiment has quickly become central to the city's efforts to reduce homelessness. To Justin Tyler Jr., it is home. Mr. Tyler, 41, lives in Community First! Village, which aims to be a model of permanent affordable housing for people who are chronically homeless. In the fall of 2022, he joined nearly 400 residents of the village, moving into one of its typical digs: a 200-square-foot, one-room tiny house furnished with a kitchenette, a bed and a recliner. Eclectic tiny homes are clustered around shared outdoor kitchens, and neat rows of recreational vehicles and manufactured homes line looping cul-de-sacs. There are chicken coops, two vegetable gardens, a convenience store ... art and jewelry studios, a medical clinic and a chapel. In the next few years, Community First is poised to grow to nearly 2,000 homes across three locations, which would make it by far the nation's largest project of this kind, big enough to permanently house about half of Austin's chronically homeless population. Many residents have jobs in the village, created to offer residents flexible opportunities to earn some income. Last year, they earned a combined $1.5 million working as gardeners, landscapers, custodians, artists, jewelry makers and more. Ute Dittemer, 66, faced a daily struggle for survival during a decade on the streets before moving into Community First five years ago with her husband. Now she supports herself by painting and molding figures out of clay at the village art house. A few years ago, a clay chess set she made sold for $10,000 at an auction. She used the money to buy her first car.