Wolverhampton, Sandwell, Dudley and Walsall councils have accused Green Corns of using "stealth" tactics to set up units in the West Midlands without planning permission, amid claims from local residents that anti-social behaviour has been "imported" into communities.
None of the councils currently have children placed in Green Corns homes.
A petition signed by more than 9,000 residents was handed in to Downing Street earlier this month. Residents are against the company's practice of housing a vulnerable child in a property with two adult carers without applying for planning permission for change of use.
But a spokesman for Green Corns rejected claims children in its care were behaving anti-socially. The company followed Commission for Social Care Inspection guidelines in applying to open homes, he added.
"We recognise local residents' concerns, but there is a lot of misinformation.
The police have been called out to protect a carer and child from demonstrators and they had to leave the house."
