The connection between galaxies and their host dark matter (DM) halos is critical to our understanding of cosmology, galaxy formation, and DM physics. To maximize the return of upcoming cosmological surveys, we need an accurate way to model this complex relationship. Many techniques have been developed to model this connection, from Halo Occupation Distribution (HOD) to empirical and semi-analytic models to hydrodynamic. Hydrodynamic simulations can incorporate more detailed astrophysical processes but are computationally expensive; HODs, on the other hand, are computationally cheap but have limited accuracy. In this work, we present NeHOD, a generative framework based on variational diffusion model and Transformer, for painting galaxies/subhalos on top of DM with an accuracy of hydrodynamic simulations but at a computational cost similar to HOD. By modeling galaxies/subhalos as point clouds, instead of binning or voxelization, we can resolve small spatial scales down to the resolution of the simulations. For each halo, NeHOD predicts the positions, velocities, masses, and concentrations of its central and satellite galaxies. We train NeHOD on the TNG-Warm DM suite of the DREAMS project, which consists of 1024 high-resolution zoom-in hydrodynamic simulations of Milky Way-mass halos with varying warm DM mass and astrophysical parameters. We show that our model captures the complex relationships between subhalo properties as a function of the simulation parameters, including the mass functions, stellar-halo mass relations, concentration-mass relations, and spatial clustering. Our method can be used for a large variety of downstream applications, from galaxy clustering to strong lensing studies.