There used to be a bug where citizens moving in were prioritized over the homeless when assigning houses, but that got fixed with the 1.1.8f game update. Now homeless citizens still searching for a place can move into new homes if you build more for them.
However, testing has shown that in some cases, homeless citizens who had already decided to move away can still get stuck forever. The mod has been updated to help them break free from limbo.
UPDATE 09-10: The active eviction is back! If a homeless household fails to find a new home within 60 in-game minutes, it will be forced to move out of your city.