which says that a guest gets to enjoy your hospitality for 2 days, but on the third gets given a hoe and is expected to work the fields.

Similarly St Paul states in II Thess 3
"6In the name of the Lord Jesus Christ, we command you, brothers, to keep away from every brother who is idle and does not live according to the teaching[a] you received from us. 7For you yourselves know how you ought to follow our example. We were not idle when we were with you, 8nor did we eat anyone's food without paying for it. On the contrary, we worked night and day, laboring and toiling so that we would not be a burden to any of you. 9We did this, not because we do not have the right to such help, but in order to make ourselves a model for you to follow. 10For even when we were with you, we gave you this rule: "If a man will not work, he shall not eat."

It seems clear he's crossed the line on this and needs to be challenged to get his act together. But to simply kick him out would be unkind; you need to see what organisations are out there who will work with someone who is effectively homeless; your church should have suitable contacts. Certainly I feel it is unfair to announce one day that he's leaving tomorrow - on the other hand the issue clearly needs to be resolved.