It does indeed sound like he is doing meth as well, classic meth psychosis symptoms. Heroin does not cause that sort of thing. My best friend was psychotic on meth for the better part of 2 years and it was horrible, eventually he ended up homeless in the winter and couldn't get meth long enough to clear his head enough to know he needed help badly... finally he went back to live with his parents, and tried outpatient rehab but it wasn't working, so a couple of months later he checked himself into 3 months of intense in-patient rehab. It took about a year for the paranoia to fully fade but at last he is back to himself and doing well. My friend has basically gone from one drug to another his whole life and this is the first time he finally seems clear of it... I hope.
In any case my point is that people need to want to stop, and need to help themselves. You simply can't do it for them. All you can do is be there for him emotionally, but also be aware that in the depths of addiction people can become extremely manipulative. Giving him money is only going to enable him.
It's a very difficult and painful situation and I'm so sorry you have to deal with it ❤ Calling the police will probably make him feel betrayed but in some cases,a week of jail time or whatever can force someone to sober up enough to stop being psychotic. My friend lived in Kansas City when he was psychotic and his parents tried all sorts of stuff, the police would always say they couldn't do anything unless they caught him breaking the law. One time he ncalled his parents and said he was going to kill himself and they called the police (since they live 10 hours away) and the police knocked on the door, got no answer, and left and said they had no idea if he was alright or not. Turns out my friend was just passed out (from finally succumbing to days of no sleep) but still, they weren't much help. I think what they can do depends on state/local laws.