Resources for Human Development has been operating for at least a year in an office building on Reetz Avenue.
It sits across the street from a number of homes.
Residents just found out about it and many Action News spoke with are worried about the safety of their children.
"I feel like they got out of prison and now they put the neighborhood in prison when that's going on. It's not fair. It doesn't belong in a neighborhood," resident Nicole Donahue said.
At a borough council meeting Monday night, more than 160 people signed a petition calling on Middletown Township to shut down the business.
Officials are trying to determine if they can close it for not having a certificate of occupancy.