Yes, sadly it is still home to many homeless children who often live in underground tunnels to try to stay warm.
These children are often refugees from abusive and alcoholic parents. Its a very sad situation that much of the world knows little about.

I can't give you a completely up to date answer; however, I was there three years ago, traveling with people who had been there a few years before that. According to my friends, there were FAR fewer homeless children than they had seen during their last visit. It sounded like the government had been doing a good job getting the children into orphanages and such.
We also visited an orphanage while we were there. It was full of kids, and they looked happy and healthy, for the most part.
There were still kids on the street, but they were far fewer than there are in, say, India. And I don't think some of them could have been too poorly off - I once offered a homeless child some bread (fresh, wrapped)…which he refused - he wanted money!

As for how they come to be homeless…well, how do kids end up on the streets anywhere? A bad family situation, an accident…I'm sure they all have a sad story.
I can't tell you how they survive the winter, either…they must be able to find somewhere warm to go. And some of them are probably very poor, but not homeless.
But I do think that the situation is probably still improving there…at least, I hope it is!