They are releasing him from the hospital (where he was sent first due to his mental condition) and "police custody" (cops watching him while at the hospital).  But will immediately be arrested (as a suspect, not that he's not a patient) by the same HPD, will be treated like any other criminal suspect.

Hope that makes you feel better.  I don't think he'll be coming to your house soon...but just in case, I'd lock all the doors!