You are missing the point. People with records of sexual assault are being housed nextdoor to a preschool. If they are registered sex offenders this proximity of their residence to a preschool would not be permitted anywhere else.

Oh, by the way, the article says  "there are no restrictions regarding drugs and alcohol in private units." So in fact some illegal activity, possession and use of illegal drugs, is apparently not prohibited. I suspect that will end up being a problem with this plan, if people rehabbing continue to live in such an environment and still can get drugs and alcohol from the guy next door. Also the issue of theft comes to mind. The security guard has his work cut out for him.