The issue focused on financial compensation for residents with rent increases and medical expenses. It also sought legislation that would legalize enforcement of laws restricting illegal shelter use.

Despite repeated requests from Justice Department attorneys to refer criminal charges against federal prosecutors, Attorney General Eric Holder issued a letter Monday expressing hope that courts will rule in favor of communities affected by legal settlements.

"While civil defendants should not be prosecuted under federal law, law enforcement agencies must ensure that offenders who engage in unlawful activities — including sleeping rough or consuming illicit