The City of Santa Barbara has officially approved the purchase of the emergency shelter facility located at 816 Cacique Street, marking a major milestone in the City's ongoing commitment to addressing homelessness and expanding access to shelter services.

At its December 16 meeting, the City Council authorized the acquisition of the property from People Assisting the Homeless (PATH) for $3.75 million, funded through Measure C allocations. The total investment, including appropriations for inspections and immediate life safety and accessibility upgrades, brings the overall cost to $4.06 million. The purchase will officially close in early 2026, following final approval of covenant revisions by both the City and County of Santa Barbara.

Originally constructed in 1974 and renovated in 2002, the 24,423-square-foot facility currently serves approximately 100 clients and has long been a vital resource for individuals experiencing homelessness. The site offers shelter, meals, hygiene services, healthcare access, case management, and housing assistance.

With PATH formally announcing its departure from the site in August 2025, the City moved swiftly to ensure uninterrupted services. Following a competitive selection process, the City has named Mercy House Living Centers as the interim service provider, effective December 1, 2025. Mercy House will work alongside PATH staff throughout December to support clients and ensure a smooth transition. PATH will officially conclude operations at midnight on December 31, 2025.

Mercy House, a nonprofit organization based in Santa Ana, brings over 34 years of experience in operating emergency shelters and housing programs across California and Arizona. Their approach integrates trauma-informed care, motivational interviewing, and a housing-first philosophy. Mercy House will provide a full spectrum of services, including shelter, health care, employment assistance, housing navigation, and neighborhood outreach.

"This acquisition ensures that the City can maintain and improve a critical resource for our unhoused neighbors," said Barbara Andersen, Senior Assistant to the City Administrator. "We are proud to partner with Mercy House to provide compassionate, comprehensive care during this transition and beyond."

The City is also working with regional partners to develop a Request for Proposals (RFP) for a long-term service provider, expected to be released in March 2026. Mercy House will be eligible to apply, and their performance during the interim period will be considered in the evaluation.

"This is a transformative moment for our community," said Kelly McAdoo, City Administrator. "Owning this facility gives us the flexibility to innovate and respond more effectively to the challenges of homelessness and to shape a more sustainable and comprehensive shelter system that meets the evolving needs of our residents. We are grateful to PATH for their years of service and welcome Mercy House as a trusted partner in this next chapter."

For more information, visit Homelessness Initiatives (SantaBarbaraCA.gov/homelessness).

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