This study examines the direct, reciprocal, and indirect effects of parolees on neighborhoods, including residential vacancies, property sales, public assistance, and crime. Cross-lagged autoregressive models are estimated using a unique data set containing annual neighborhood information on parolees, crime rates, and neighborhood structure in the city of Cleveland, Ohio, between 2000 and 2008. Results suggest parolees degrade neighborhood structure, and these effects are direct, reciprocal, and indirect. Understanding how the presence of parolees can contribute to changes in neighborhood processes linked to crime will broaden our understanding of the effects that parolees have on communities and highlight additional areas for intervention.