Santa Monica's City Council voted Tuesday, July 28, to take local control of the Palm Motel at 2020 14th St. and convert it to city-run stabilization housing, approving the centerpiece of a $9.5 million homelessness overhaul that aims to replace the city's only homeless shelter.
But in the same session, the council delayed the transition away from SaMoShel, the 60-bed congregate shelter at 505 Olympic Blvd. that has served homeless residents for more than 32 years.
"We took an important step by voting for Santa Monica to take local control of the Palm Motel and prioritize Santa Monica residents," Councilmember Lana Negrete said on Instagram the morning after the vote. "But we also delayed beginning the transition away from SaMoShel, despite having regional options already available."
As we reported July 27, the plan, called the Housing Focused System of Care, carries a total price tag of $9,535,809 across two fiscal years, according to a staff report detailed by the Santa Monica Daily Press. Staff proposed shifting $3,458,150 from the Providence Saint John's Development Agreement fund balance to cover part of the cost, and the budget amendment required at least five council votes to pass.
Individual vote tallies were not available as of Wednesday, July 29.
What changes at the Palm Motel
The 34-room motel has housed 48 people under a county-funded contract with The People Concern for two years. With L.A. County ending that funding, the city will now run the site directly, reserving beds for people who meet the Santa Monica Program Participant definition: someone who became homeless in the city, has been homeless here three or more years, or is a frequent user of city services.
City Manager Oliver Chi said at a town hall at Santa Monica College ahead of the vote that participants would be screened before placement. "Nobody gets into the facility unless we direct them there," Chi told the Santa Monica Mirror.
Allyson Crosby, a manager in the city's Homelessness Prevention and Intervention Division, said at the same town hall that clinicians and psychiatrists would be on-site daily to assess behavioral health and substance use needs.
Pico residents still want a binding agreement
The Pico Neighborhood Association has argued the neighborhood already bears a disproportionate share of the city's homeless services. Maria Loya, the association's co-chair, told the Mirror ahead of the vote that there is "a historic pattern where Santa Monica has used Pico as a dumping ground," citing drug activity tied to harm-reduction needle distribution and the beginning-of-month check cycle.
Residents demanded a formal Good Neighbor Agreement modeled on the binding pact at the Step Up on 26th housing development, which includes screening procedures and regular meetings between residents and facility staff. The city instead offered "Good Neighbor policies" and the option to raise complaints at council meetings.
Zina Josephs, secretary of Friends of Sunset Park, told the Mirror the city's proposal was "not the same, and it's not acceptable."
Whether the council attached any formal oversight conditions to Tuesday's Palm Motel approval is not confirmed in available records.
Broader context
The vote came as the council also approved a measure protecting the Pico Neighborhood from additional interim housing facilities, according to Negrete. In a separate action the same evening, the council approved upzoning in Pico under SB 79, even as residents raised displacement concerns.
The plan's other components include funding shelter beds at The Salvation Army's Bell Shelter in the city of Bell for people who don't meet the SMPP definition, and a competitive search for motels or hotels to eventually replace SaMoShel's capacity.
Santa Monica's 2026 Point-in-Time Count found 718 people experiencing homelessness in the city, down 11.6% from 812 in 2025. Unsheltered homelessness fell 18.7%.
The Friends of Sunset Park, which has been central to oversight demands around the Palm Motel conversion, meets next on Wednesday, August 12, at 7 p.m. via Zoom.
