County secures $21 million grant to renovate Paso Robles behavioral health facility
Grant to support a new Pathways Home project in Paso Robles aimed at expanding mental health and substance use disorder services.
Plans for the site include expansion of crisis, residential treatment
– The County of San Luis Obispo Health Agency Behavioral Health Department has been awarded a $21,639,180 state grant to support a new Pathways Home project in Paso Robles aimed at expanding mental health and substance use disorder services for youth and adults.
The project was recently approved by the San Luis Obispo County Board of Supervisors and includes about $2.16 million in required County matching funds. The County also authorized the purchase of the property at 416 Spring Street in Paso Robles, which will be renovated for the project.
The grant was awarded through the State’s Behavioral Health Continuum Infrastructure Program and is supported by the Proposition 1 bond approved by voters in March 2024. The funding will be used to purchase and renovate an existing facility in Paso Robles to provide a comprehensive range of behavioral health services.
The Governor announced the first round of competitive grants in May 2025, highlighting more than $3 billion awarded statewide and emphasizing the importance of projects being shovel ready. The Department of Health Care Services received nearly 300 applications and selected 118 projects, accounting for 199 mental health and substance use disorder facilities across California.
“Californians demanded swift action to address our state’s behavioral health crisis when they voted for Proposition 1 in March 2024,” said California Governor Gavin Newsom in the announcement. “These launch-ready projects will build and expand residential beds and treatment slots for those who need help. Whether it’s crisis stabilization, inpatient services, or long-term treatment, we’re ensuring that individuals can access the right care at the right time.”
The Paso Robles project aligns with the Behavioral Health Department’s five-year strategic operating plan and is estimated to be completed in fiscal year 2028–29.
Plans for the facility include a new 16-bed Psychiatric Health Facility to expand intensive behavioral health services within a secure environment, including 12 beds for adults and four beds for youth. The project also includes the first adult crisis residential treatment program in San Luis Obispo County, offering short-term support for adults experiencing a mental health crisis with eight beds, as well as the first children and youth crisis residential treatment program in the San Luis Obispo and Santa Barbara region, designed to bridge the gap between inpatient care and outpatient reintegration, with two to four beds for youth.
“We are very excited to be awarded these competitive grant funds,” said County Behavioral Health Director Dr. Star Graber. “This expansion allows us to respond more promptly to mental health crises and promote health equity across San Luis Obispo County ensuring that North County community members and others can access critical services in our County.”
County officials said the new facility is expected to reduce out-of-county placements, particularly for youth in need of crisis services. The County’s existing 16-bed Psychiatric Health Facility, located on the Health Agency campus in San Luis Obispo, frequently operates near or at capacity and serves adults only. San Luis Obispo County also does not currently operate any crisis residential treatment programs.
“We are currently transporting individuals from their community, sometimes up to six hours away, to receive psychiatric care,” said Graber. “Imagine sending a loved one, a child, or a grandchild away at a time when they need their family the most. This not only creates immense stress on clients and their families but creates a disjointed continuum of care when they return home.”
From July 2024 to June 2025, Medi-Cal community members ages 21 and older accounted for 376 admissions and 3,268 out-of-county inpatient psychiatric bed days, averaging nearly nine beds per day. During the same period, Medi-Cal members ages 20 and younger accounted for 173 admissions and 1,330 out-of-county bed days.
County officials said the need for local services has increased following the expansion of Senate Bill 43, which allows individuals to be placed on a psychiatric hold for grave disability related to severe substance use disorders.
The project is expected to generate economic benefits through job creation, reduced caregiver and travel costs associated with out-of-county treatment, and lower public safety and hospitalization costs. Officials said the local facility will allow faster transitions from hospitals to treatment and provide additional crisis stabilization services.
“Transporting clients out of County can lead to higher re-admission rates, costs, and strain on our local crisis response as it often takes extra coordination to ensure timely transportation and appropriate care for those in crisis,” said Graber. “This facility will significantly reduce these issues and allow community members to utilize local programs and resources which will provide more seamless care for them through their recovery journey.”
The Health Agency will present an overview of the project at the Paso Robles City Council meeting on Tuesday, Feb. 3. Additional information about the County’s Behavioral Health Continuum Infrastructure Program project is available online at slocounty.ca.gov/BHCIP.
