By Jorge Casuso

October 7, 2025 -- News that a County-funded program offering transitional housing for homeless individuals with a serious mental illness will open on Ocean Avenue this month has stirred fears and raised questions

Who will live in the facilities at 413 and 825 Ocean Avenue? Where is the funding coming from? Who owns the two properties that will provide 49 beds and services?

Those are some of the questions being raised by neighboring residents in one of the Santa Monica's most exclusive areas as City officials try to set the record straight.

Following are some facts about the program funded by the County and operated by Venice-based St. Joseph Center.

Who is funding the program?

City officials have said that the LA County Department of Mental Health (DMH)-- the largest county-run mental health department in the U.S. with an annual budget of more than $4 billion -- is providing $4 million in funding to operate the program.

On October 2024, DMH received approximately $213 million through June 30, 2027 from the State of California’s Behavioral Health Bridge Housing (BHBH) initiative to provide funding for "operations and start-up infrastructure of interim housing locations" countywide.

The money will be used to "expand interim housing beds with enhanced supportive services and housing navigation," the program's third-party administrator, Brilliant Corners, a Southern California non profit, said in a November 15, 2024 press release.

Through the State initiative, DMH seeks to fund more than 500 new non-congregate IHP beds. "The goal of the program is to assist clients with transitioning to permanent housing," according to the DMH website.

Who will live in these facilities?

According to DMH, eligible clients must be at least 18 years old, homeless, have "a serious mental illness" and "be willing to receive services from a DMH directly operated clinic or DMH contract provider."

A serious mental illness (SMI) is defined by the National Institute of Mental Health as "a mental, behavioral, or emotional disorder resulting in serious functional impairment, which substantially interferes with or limits one or more major life activities."

Clients must be "independent with all Activities of Daily Living (ADLs) including bathing, grooming, dressing, feeding and toileting" and be "independent with mobility."

Clients must also be "cognitively alert and oriented to name, place, date and situation" and "willing to sign and adhere to the IHP Client Agreement specifications."

Clients are not eligible if they require "psychiatric or physical health emergency/inpatient hospitalization or other 24-hour treatment," "daily physician oversight" or 24-hour nursing support.

Clients are excluded if they "currently exhibit combative, aggressive or threatening behavior" or have "cognitive impairments" requiring "constant supervision, monitoring, redirection or verbal cues or that place the participants at risk of wandering."

Who owns the two facilities on Ocean Avenue?

City officials have said SHL Investments led by Beverly Hills developer Leo Pustilnikov owns the facilities and has applied for a Change of Use Permit (CUP) for the two properties across from Palisades Park.

A search of property records found that 413 Ocean Avenue is owned by BFG Santa Monica Propco LLC in Winter Park, Florida and that the land use is "nursing home."

It is unclear if the MLS information has been updated. The results for a property search on the LA County Tax Assessor's website does not include the owner's name.