Thanks for the links! I have already taken her to the nearest Loja da Cidadao but they weren't very helpful. All the lady offered to do was contact a local factory about a job. My friend does also need to find a job but she had already been to that particular factory and they told her there were no jobs going. Other than that no help was offered. I reckon we should go to a bigger LdC (the one we went to is a tiny branch) and will do that next week.
Yesterday we found out that on Mondays there is the equivalent of a family liaison officer at the local camara so we will be going there.
She spoke to one of the teachers at her kids' school in confidence and it so happens that he does voluntary work at a hostel for the homeless, but in a different concelho. He is also looking into her situation.
I suggested contacting her embassy. Am not expecting too much from them but you never know.