The concept here is that if parent(s) are unable to care for their child(ren), that an alternative solution is implemented where the children are as minimally impacted as possible. That is to say, can still go to the same school, perhaps live at home.
Sort of like godparents, but not that they are really related or good friends necessarily.
And is intended as purely interim, such that if the parent(s) are never able to continue further, that the child(ren) would complete the school year, for example, before being relocated to another hopefully permanent living situation (such as then moving on to the godparents, or foster parents).
In the same neighborhood, close by, works probably best. Then the child(ren) have more of an opportunity to interact with the "extended family" members, and vice-versa. Further, the parent(s) can, and should, share their lives so that the people helping know of the routines and preferences of the child(ren).