1) the parents don't have enough money to support their kids and/or
2) the parents don't rate their kids need for personal space and Identity highly.
This case clearly fits into category 1. And yeah there may be struggling hard working families who are trying their best to get a bigger house so their kids can have a bedroom. Good on them. Not in this case though. It's not the department of housings fault. These parents have made bad, shady and illegal decisions which led to them not being able to support their kids.