Why do Bay Area homeless people turn down shelter beds?

Baby Lady, as she’s known on the street in San Jose, has been homeless for nearly eight years. She has little desire to move indoors.

The 39-year-old with darting blue eyes has PTSD and severe anxiety dating back to childhood, making it almost impossible for her to stay in close quarters with others at homeless shelters, she said. After so long without a roof over her head, she’s grown accustomed to life in encampments.

“I have a phobia of windows, doors and walls,” she said. “And...