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Officers immediately attended the property on Hospital Street in the All Saints area of Wolverhampton and found Mr Daraska's lifeless body.
When questioned by police, Puodziunas claimed that "voices" had told him to kill Mr Daraska and that while he was dead, his victim had "spoken" to him and told him to hand himself into police.
Prior to the hearing, the judge had ordered a full psychiatric assessment to be undertaken on Puodziunas.
This determined that he was unfit to stand trial due to mental ill health but had sufficient capacity to enter a plea in relation to the offence.
A homeless man has been issued a hospital order for killing another rough sleeper in the derelict social club where they were living.
Mindaugas Puodziunas, 33, was issued with a hospital order with restrictions when he appeared at Stafford Crown Court, having pleaded guilty to manslaughter on the grounds of diminished responsibility at a hearing at Wolverhampton Crown Court in January.
The court heard how Puodziunas had attacked Jonas Daraska, 40, with an axe causing head and neck injuries.
With the victim's body lying in the same room in the cellar, Puodziunas continued to drink before going to Wolverhampton police station the next morning to say he had killed a man.