Residents and the Morecambe MP are campaigning against plans to convert a house in Bare into a children's care home.
Northwest Childcare Ltd has applied for a 'change of use' on 7-9 St Christopher's Way for an Ofsted registered residential care home for two to three children.
The Burnley-based firm says it is "dedicated to caring for the most vulnerable children and young people in society".
In a letter to Lancaster City Council, Northwest Childcare Ltd said: "The home would be an ideal place for two to three children to grow and develop, feel valued and loved and become successful with their lives and futures."
Residents, in a petition sent to the council, said: "St. Christopher's Way is a quiet and largely elderly residential area.
"The change of use outlined will be housing children with, in some cases, challenging behavioural issues (which) is not in keeping with the area.
"Surely with the desperate shortage in housing across the area, the property would be better put to use as a family home. This would be another property that would be taken out of the rental system."
They also say the proposals vastly underestimate the number of staff members needed and have not taken into account the number of parking spaces required.
David Morris, MP for Morecambe and Lunesdale, has met with residents to support the campaign.
"I fully support the concerns of my constituents and have submitted a letter of objection to this proposal," said Mr Morris.
"This type of accommodation is not needed or used by local people in the Lancashire County Council area and is totally inappropriate in an area full of elderly people.
"The plans that have been submitted are not detailed and do not take into account even basic requirements like appropriate staffing for such a facility or parking.
"Notwithstanding the fact that this property is in an area where the demand for housing is great and bids for properties largely outnumber the number of available properties.
"I trust that the council will look at the facts of this case and see that this application should be refused."
The Highways team at Lancashire County Council have asked for "further information regarding the staffing of the home and a plan showing the provision of the off-street parking".
Lancaster City Council will make a decision on whether to grant permission for the change of use, in due course.
We have contacted Northwest Childcare Ltd for comment.