The home is planned for Norris Avenue in the northern Arden-Arcade area, near two elementary schools.
"It's like a bomb was dropped on us," neighbor Brian Rice said. "The more I looked into it, the more no one in this neighborhood has ever heard of this before."
The organization says the residence will provide transitional housing for people leaving prison who are already enrolled in its rehabilitation program.
Residents would be ineligible to live in the home if they have any criminal convictions for sex offenses, serious or violent felonies against children, or arson.
The organization says none of the program's participants have returned to prison within three years of their release.
"My questions go down to what kind of offenders are we going to see," Rice said.
The San Juan Unified School District, which serves the area, said it is just learning about the proposed home and has begun reaching out for more information.
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