He's charged with attempted murder in connection with Saturday's stabbing.
According to police records, the suspect, 22-year-old Gregory McClain, spent time behind bars last year on assault charges.
The state health department has suspended the license of the Holly Springs group home following the Saturday stabbing.
The Health Service Regulation (DHSR), North Carolina Department of Health and Human Services (DHHS), suspended VAGAP Health's license to operate on Monday evening.
According to court documents, the suspension is based on findings that conditions at VAGAP Health that present an imminent danger to the health, safety and welfare of the clients.
Officials also found the facility failed to be in substantial compliance with rules under their license.
Meanwhile, neighbors of the group home wonder if they should be worried about the home's other residents.
The Town of Holly Springs said it hasn't had any problems with other group homes in the area, but after numerous complaints, the town said the home has to go.
"Our police department has been working with the town attorney to prepare information to support a court order to have the group home closed," said Mark Andrews, Town of Holly Springs.
DHHS determined there was not enough supervision in the home after investigation a complaint last month.
The stabbing incident raised concern in Holly Springs from people concerned about safety.
"It's been open since sometime in December, less than two months, and our officers have had about 17 calls," Andrews said.
Police say the group home had state authority to house up to six residents.