I'm Living A Nightmare!

I live in Mesa, Arizona. August of last year my neighbor, who had been harassing us for months, used a gas can to light my home, yard and car on fire. Police were called, a six hour standoff commenced. We had to be evacuated from the neighborhood by the police because the neighbor was fixating on attacking my room mate and I because of our race and nationality. Eventually SWAT drove through his front door and he was dragged kicking and screaming from his home with a bite guard by 4 officers. The neighbor was charged with 6 counts of assaulting a police officer and 1 count of arson of an occupied dwelling.

Our house suffered major fire damage. My roommates agoraphobia and anxiety became near crippling and I had to quit my job, start a new job at a massive pay cut so I could have the time to manage the repairs and other damages from the situation.

It has been over a year now, our home is still missing a kitchen and a bathroom. There is still no fence between our home and the neighbors due to the insurance dragging their feet through every step of the process.

Last week I found out that all of the charges were dropped due to the neighbor being incompetent to stand trials and being found unrestorable. That means all our hopes of restitution for any damages have vanished.

The judge recommended he be held in a mental health facility for 20 months so we figured we would at least have time to repair our home to the best of our ability and move out before he could return.

Today I was informed that he would be released to his home within the upcoming week.

I have no idea what to do. I'm convinced he will attack us again, he has a history of violent charges from 2008 and onward, all of them with a pattern of having the charges being dropped due to him being incompetent to stand trial only to reoffend again. Our insurance has already said they will not renew our policy due to having to pay out for the damages. No other insurance will insure our home with an arsonist living next door. We're going to lose our mortgage, our home and have already had a greatly diminished livelihood. We are currently packing up what we can and moving to my mother in laws home to try and protect ourselves.

Everyone we talk to says there is nothing they can do. I cant believe he can be found to be incompetent to stand trial for assaulting a police officer and arson and four days later be deemed not a danger to himself and others and released to live next to the people he attempted to kill.

I don't know if I'm even looking for a solution I'm just flabbergasted and needed to type this out as a form of catharsis.