"...they were thanking me for just treating them like a human." Bingo. A common problem is that people think giving some change or whatever is "treating them like a human". As you say, I've found to be true: people who are homeless want to seen, and interacted with, as equal. And like you later said, it made working with them easier when needing them to clear out. The problem is that this requires connecting with others, and that is what is tricky for many people.