State Grant funds for FBRS plans recinded

MAJOR UPDATE: WE WON!

7/16/26

Greetings All,

We have GREAT news. The $73.4 Million in State grant funding for FBRS has been recinded. They will NOT be moving into the LSOP location. 

Here is the statement from Councilman McOsker’s Facebook Page:

“Today, the California Department of Health Care Services (DHCS) notified our office that, effective immediately, they have rescinded the conditional award of $73.4 million in state grant funding for Fred Brown Recovery Services’ proposed Serenity Recovery Campus at 2100 S. Western Avenue, the former Little Sisters of the Poor property. I am appreciative of DHCS for conducting a thorough review of the application and recognizing that this project presents significant legal and financial risks and does not meet Bond BHCIP funding requirements.

For months, I have raised serious concerns with DHCS about this proposal’s financial structure, transparency, and overall viability. I have consistently urged the Department to carefully review the application, while residents across our community brought important and legitimate questions directly to DHCS and other State representatives. I am grateful to the many residents, neighborhood organizations, and community leaders who remained engaged throughout this process. Today’s action demonstrates why thorough review, public scrutiny, and accountability matter. As I have always said, I support expanding access to mental health and substance use treatment. But those services must be delivered through projects that are financially sound, transparent, and appropriate for the communities in which they will serve”.

A huge thank you goes out to all the volunteers and concerned citizens in our community who persisted in helping us to get to this result. Thank you to all the picketers, letter writers, meeting attendees, data collectors, researchers and social media managers. Through your grass roots efforts combined with our wonderful Councilman’s office due diligance, we succeeded in protecting our communitiy and our town. Congradulations!