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Prisons house a disproportionate number of mentally ill and substance using offenders. For many, limited treatment opportunities in the prison setting and the stressful environment exacerbate underlying symptomatology. Indeed, we find that the mentally ill are more likely to be charged with rule violating behaviors and spend an average of five months longer in prison. Longer prison stays and limited treatment opportunities are likely to hinder successful reintegration. Although research has contributed to our understanding of the impact of disorders on offending behavior, we have yet to examine the interactive effect of neighborhood context and disorder type on recidivism. The current study examines four mutually exclusive and exhaustive groups of parolees released to the City of Philadelphia between 2007 and 2008: (1) those with no known disorders; (2) mental health disorders only; (3) substance use disorders only; and (4) co-occurring substance use and mental health disorders (CODs). Using a sample of approximately 5,000 parolees, we examine the role of the neighborhood context and non-residential land uses for their predictive value on re-incarceration and time to re-incarceration by disorder type controlling for individual level factors. Our findings and their implication for policy are discussed.