People with mental health problems as well as those with learning disabilities can live in a converted house in Old Leigh Road, Chalkwell.
Despite objections by local residents, Southend Council agreed to the application from St Luke's Hospital Group.
Residents believed the plan was totally inappropriate saying it was too close to three schools, and it was not clear how much supervision would be involved.
Brian Kelly (Con, Southchurch) said such provision for people with learning difficulties were needed in Southend.
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