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.
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