Eliminating the Competition?

State regulations promulgated in December are going to close down church-based shelters for the homeless. The regulations’ given rationale is the state’s legitimate interest in safe and sanitary conditions in overnight shelters. But as written, the regulations would require churches to spend impossible sums to achieve compliance; and, perhaps tellingly, they would delimit a homeless person’s stays to 35 overnights per year, and would ban them altogether from June 15 to September 15. Such restrictions apparently will not apply to state-supported shelters — only to those run by churches and private organizations such as Salvation Army.
One wonders if the hidden agenda isn’t to “eliminate the competition” provided by faith-based voluntary organizations in order to clear a path for much more expensive state-funded programs.