Health bosses are planning to build a £6 million secure unit for mentally ill offenders in Bradford.
But residents who live near the proposed site are horrified by the proposals.
Bradford City Primary Care Trust has produced a business case for the 36-bed forensic unit, which is likely to be built on the grounds of Lynfield Mount mental health hospital.
At least six beds will be allocated for male offenders and a separate area will be dedicated to women for the first time.
The plan aims to cut the high cost of sending patients outside the district for treatment.
In the past, women have also been placed in higher security accommodation than necessary because of the district's lack of capacity.
In a report to be presented to the Trust board on Thursday, director of finance and commissioning Sheenagh Powell said there were no low security places for females and that the proposal would significantly improve access for women.
"In addition the lack of current facilities locally results in a significant proportion of those receiving care outside the district being from ethnic minorities," she added.
"The geographical location of these placements means that there may be no local pool of staff from minority ethnic backgrounds and therefore patients may feel isolated."
But people who live nearby Lynfield Mount Hospital in Daisy Hill are worried about the possibility of offenders escaping.
Grandfather-of-nine Arnold Charwood, whose home in Moss Side is opposite the hospital, said he was annoyed that residents had not been consulted about the plans.
"I was not happy when they decided to build the other secure unit. It is dangerous living so close especially if they escape," he said.
"They held a meeting before they built the other one at Lynfield Mount - but nobody listened to what we said.
"This is the first I have heard of a unit for offenders. They should have asked our opinion first."
Councillor Stanley King (Con, Heaton) said he was also greatly concerned at the plans.
He said: "There are certainly problems with patients escaping but the unit there at the moment is for voluntary patients, not prisoners.
"When the residents were consulted about the unit five years ago, they were assured that they would not be looking after prisoners at the hospital.
"I certainly would want to be involved in talks on this because of the serious implications for local people.
"The hospital is surrounded by houses."
The low secure unit is estimated to cost £5.9 million and would be funded through a private finance initiative.
Patients cared for outside the district would be brought back to the new premises to save cash.
The six-bed ward would treat male offenders for up to 12 months, but could also be used to care for patients from Lynfield Mount Hospital and other hospital trusts who have not been charged with a criminal offence but who are at risk of breaking the law.
The separate six-bed area for women would deal with patients from a number of districts with common needs such as enduring mental illness.
A long-term high-dependency area with 12 beds would also be built, which would have locked doors. It would aim to improve quality of life, with patients having access to personal living space and normal community facilities.
Ten beds would then be allocated to an in-patient open forensic area, including two beds for bail assessment and eight beds for rehabilitation.
Part of the building would be dedicated to encouraging independence by developing links with the community. The service could be operated on a self-catering basis to prepare patients for life outside.
Day care and therapeutic would be provided and additional support would be available through a drop-in service.
The development aims to double the number of long-stay beds to meet demand and allow patients to be cared for closer to home.
Collaborative work with the police, social services, probation and prisons would be expanded.
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