Officials say stolen car may have led to shootout in San Francisco's Castro District

SAN FRANCISCO (KGO) -- Rapid gunfire rang through a Castro District neighborhood shortly after midnight following Halloween. Street markings and yellow tape are still evident at the shooting scene.

RELATED: SFPD officer in critical but stable condition after shootout

Jeffrey Yee couldn't return home until Wednesday evening. He lives on Diamond Street and it was closed off for most of the day.

"Police have to do what they need to do, recreate something and hopefully more clues, " said Jeffrey Yee

San Francisco Police say just after midnight someone notified officers about a suspicious vehicle near 18th and Diamond Streets. Detectives say it turned out to be a stolen Chrysler Sedan. When officers approached the car there was an exchange of gunfire between the suspect and at least one officer. Both of them are recovering in the hospital. The suspect's condition is life-threatening.

Detectives say they recovered the suspect's firearm at the scene.

Police are also investigating a possible connection to another crime. Investigators say a taxicab was carjacked in the Castro shortly after the shooting. The cab was ditched on Oakwood Street in the Mission District. Ben Marten says police searched all around his house on Oakwood Street.

"We saw them walking in the backyard looking for people, there was also this taxicab parked there," said Marten.

Neighbors still have a lot of questions.

"I wish they would let us know a little more what's going on but I understand if they have to catch a bad guy," said Wanchen Tsai.

San Francisco Police say a resident flagging them down about the suspicious car was helpful.

They're reinforcing their message if you see something, say something. They plan a town hall meeting in 10 days for the community to provide transparency about their investigation.