It sucks this person has this problem, but its a bigger issue for the community at large when he starts acting out with weapons. You need to make this an issue with the authorities, it could prevent a death or a serious injury.
I'd probably start by making contact with the CPS office in your district and ask to speak to someone in charge, and then make a formal complaint. I'd also contact in writing both my MLA and my MP, and provide them a copy of your written complaint, and ask them to monitor the situation as people could be at risk.
They might not be able to let you know what the reasons were for him not being charged... but if he's chasing someone with a knife.... and is mentally ill... its still a crime but he might end up being "not criminally responsible" --but at least assigned to a hospital where he is monitored properly. Also, he may have been charged criminally and now is going through the system, but was given bail. Too many possibilities to count them.
This is very serious, all the best. Who decided he could be back in the community? I'd be asking lots of questions and writing letters to make a paper trail.
There is probably a department in AHS to deal with this, I'd also try to find out who that is and make contact with them.
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