Your feelings are your feelings. You are not wrong to have them. However, if you identify with them and cling to them you will experience pain and suffering as result. They are not reality, they are feelings. Identification and clinging are choices and there are alternatives.

It sounds like you are doing what you can to stay healthy and take care of your basic human needs. If others judge you for that, so be it, but you do not need to justify or resonate with their judgments. You are free to judge yourself.

You qualify for the housing and it is of aid to you at this time. If you had other choices I imagine you might explore those, but this is the option that works best for you at the moment. You can either make the best of it of judge yourself harshly for it.

As for your family, there are many possibilities. You can ignore them. You can distance yourself from them. You can agree with them. You can argue with them. You can let them know you hear them, but you do not agree. You can point out to them that your housing situation is none of their business if you aren't asking them to contribute.

Each of these options carries a certain amount of value and that amount is subjective and wholly based upon you. I would suggest maybe trying to detach from your feelings for a while and assess which option carries the most value and then pursue that.