YMCA bosses stepped in to address concerns a Y:Cube development at Chessington would attract criminals.
Residents turned up in their hundreds to a meeting at St Mary's Church Centre to express worries about the plans on May 3.
Richard James, CEO of YMCA South West London, aimed to clear up "misconceptions", and said the inhabitants of the homes would be young people from the area, in work or education, who cannot afford the high rent prices.
An audience member asked if they had had trouble from the tenants in the pilot Y:Cube development in Mitcham.
Another raised concern which was echoed by other people in the audience that residents could bring friends with them who could cause problems in the area.
Simon Tanner, Y:Cube development director, said the police have never been called there and there is no record of any trouble from tenants.
He said each tennant is vetted by the YMCA before they move in and they must fulfil a set of strict criteria. He said it was the sort of development he would be happy for his daughter to live in.
Mr Tanner added: "We are not housing criminals, nor paedophiles, nor drunks."
Kingston Council plans to increase the current rent of St Mary's Church Centre from £850 a year to £3,000, before rising to £8,000 within four years.
Church leaders agreed working with the YMCA to build a new community centre with affordable housing units would be the best solution.
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