Just found out a sex offender lives down the street, and he's the dad of my daughter's good friend. Now what?

My husband and I recently found out that a Tier 3 sex offender lives on our road, 3 houses down and across the street from us. The house belongs to his parents but he lives there with them, and sometimes his 10yr old daughter stays there with them. My children are friends with his daughter. She goes to school with them, she's a year older and a grade above my oldest child. She closest with my older daughter, but she plays with all three of my kids. Her dad was convicted in 2000, he was 27yrs old at that time and this was 7-8 years before our daughters were born. The info I found says nothing about incarceration. I looked up his offense and it's described as forced or coerced sex with a child older than 13 and younger than 16 years old. He and his daughter have been on our road for as long as I can remember (not sure why he never showed up on the sex offender registry before now, maybe he just started using his parents address as his residence?). My children have played over at their house before, and my older daughter even went to an Easter egg hunt with his daughter and him last Easter. Obviously we won't let her go places with him again, and aspects of my daughter's friendship with his daughter are going to have to change... But we just aren't sure exactly how to approach it. We want to talk to our daughter and tell her why her friendship with the other girl has to change but how do we do this without it somehow getting back to his daughter? We can tell our daughter not to talk to her about it. But the other girl is going to notice that things have changed if our daughter suddenly can't ever go to her house or sleepover or go places with her like she used to. What do we tell our daughter? And how can we explain the change in friendship rules to her friend, without saying anything about her dad. Because we don't have any idea if she knows anything about her dad's past. And if she doesn't know, it's NOT our place to tell her, that's for sure. :( I feel bad for her. She shouldn't be punished for her father's mistakes so I don't want to cut the friendship off completely. We're still going to allow her to play at our house with our kids. But it's going to be hard for us to explain why she suddenly can't go 3 houses down to play at her house anymore. Any advice is much appreciated! via /r/Parenting http://ift.tt/2lrdLf2