Why does Nora make a complaint with the city about Phil in the novel, Alternate Side?

Phil is the panhandler who asks for money outside of the jewelry museum where Nora works. When she complains to the city (on Bebe's behalf) about his presence, she is informed that he is not homeless. Nora is affronted by this, because she sees it as deceit, but Phil wonders why someone must be homeless in order to panhandle, and Nora has no adequate response. Consequently, they exchange witty banter several times throughout the novel.