Renovations have already begun on the historical Magnolia House in Dayton and neighbors aren't pleased about who is supposed to move in.
David Gaither of the Generations Gaither Group says he purchased the house along with two others to turn them into homes for the mentally disabled.
"I don't have a problem with mentally ill people," said resident Priscilla Corvin, "but when they're extremely mentally ill and they can pose a danger to residents, to our children, they have to walk by there every day. That becomes a concern to me.
Corvin and several Dayton residents came to city council to express their worry, but since state and federal laws allow homes like this in residential areas, there was little the council could do.
"The federal government comes in and says we need to take care of these people so they kind of stretch the boundary, if you will, to where they kind of over ride us to where we haven't been able to stop them because of what they do," said Mayor Gary Louallen.
Gaither said off camera the people in the homes would likely have mild mental disabilities such as depression, schizophrenia, and bi-polar disorder, and would come from state mental hospitals.
He says dangerous patients and sex offenders won't be allowed.
Corvin believes it's still too big of a risk
"These are my concerns is that those people getting out into the neighborhood, hurting a child, or disturbing something or hurting someone or themselves," said Corvin.
The council said they will work with residents, state legislature, and regulators to try and stop the homes from opening.