I have seen these underground communities about ten years ago. My friend works as an electrician for the Transit authority and showed me around and is was so amazing. There were literally families living in there own little sections like an underground housing project. The smell was unbelievable and there were rats everywhere. The particular ones I have seen were abandoned Subway stations and tunnels.
These tunnels are actually very practical for homeless because they were safe from police (at the time), warm in the winter due to city supplied steam lines and cool in the summer. It is no place anyone would ever want to live but I guess it beats living on the sidewalk without shelter.
It is my understanding that Giuliani removed these communities since I been there.