@chenando1
C'mon author, don't go turning this manga from cute to the type where MC has to fight some evil organization (usually government) to protect those MC cares about. Not cool yo!
Seems like it's more of the agents job to deal directly with the higher ups. At the very least, the author has set it up so that there they will have people who actually do want to help them.
Honestly, this seems to be a fairly logical next step. While a lot of it is focused on raising Gospel, it's always just as much been about Lorem integrating into society (partially for his sake), and the relations between humans and demons, and the difficulties of it (such as Chiharu nearly dying from what is a fairly mild cold for demons, and her deciding to take a courses to help with integrating human and demon society).
Also, kinda obvious behaviour from humans to have all that isn't human be isolated in an environment or facility where if it goes out of control or becomes a danger for humans they will have the power to get rid of them by the use of a powerful weapon be it missiles or poison because they can't accept their existence or superior physical or supernatural abilities. Why can't humans just get along with them instead of getting all violent against them?
From what they said, it's temporary while they learn to integrate with human society.
If you notice what
@thanghe and
@REMasher have pointed out, it makes sense to have it be an isolated neighbourhood. Some of the residents aren't as far along as Lorem, and are probably quicker to fight and use their powers, which would make them dangerous to be around humans, simply due to the potential for collateral damage, and even if they did stuff like that without harming a human, it would most likely reinforce the average human's view that demons are dangerous and can't be trusted. Even beyond powers, some of them may just be naturally stronger and tougher than humans, and may harm someone simply because they don't realise that they are using too much strength.
As such, they need to have a place where they can safely help them learn not to lash out or use their powers without thinking, so that when they eventually live amoung humans, they won't accidentally harm someone.