I have been a member of the board of a mental health organization that for many years has provided neighborhood housing for people who suffer from mental illness. Many people with mental illness live and work in their communities. Only people who are in crisis or are a danger to themselves or others remain in a psychiatric inpatient setting.
Therefore, since transitional neighborhood placements far exceed inpatient care, one can conclude based on the success of these residential facilities, they are well supervised and safe. The neighbors, often after initial negative reactions, come to see the newcomers as part of their community.