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The policy of the current government are that people like this should be integrated into the community instead of institutionalized. Indeed the number of institutions has all but dried up. The Police have bugger all power and or resources to deal with them thanks to civil libitarian action. The only people with the power are the local magistrate, his mental health case worker and the local member of parliament.
Remember when all the council houses used to be in one suburb but now they are spread around. This is the same scenario. Integrate managed people back into society.
Unfortunately in your case the only way you will get any luck is by complaining directly to the local member with a detailed list of incidents and the supporting signatures of your neighbours.
Best of luck.
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