I can confirm this experience in NC. I volunteer at Roof Above in Charlotte, and one of my tasks as a counselor is to help people replace lost/stolen IDs. If you had an ID in NC that wasn't expired, it's not too bad - just go to the social security office and spend a full day getting a replacement card, then go to the DMV and get a replacement card. Oh wait - sorry, SSA wants to see your ID before giving you a replacement card, and DMV won't give you an ID without another form of ID.
And don't even get me started on if you don't have an ID already. Then you need a birth certificate. For you or me to get a birth certificate for ourselves is a pain in the ass - involving a lot of online paperwork and waiting 6 weeks. And we're good at internet navigation, and we have a constant mailing address, and we have money to pay for the costs. The homeless don't have any of that. We give them 2 hours on a computer at the library and they spend it searching for "how do I get a birth certificate for free." I even dealt with one guy whose parents had been transient, and he had no idea where or when he was born. He THOUGHT it was California. Good luck getting a birth certificate in those circumstances. That's when I have to call in the professional social workers for help.