The purpose of this study is to assess the need for a new mental health service called a Protected Living Environment (PLE) in the republic of Georgia. PLE intends to provide residential care for the severely mentally ill (SMI) in the community. Patients and staff members from all six long-term psychiatric hospitals (Tbilisi, Batumi, Rustavi, Khoni, Surami, Bediani) in Georgia have participated in the study. The study includes a quantitative (a structured survey) and a qualitative component (in-depth interviews), which together provide a more comprehensive data. The questionnaire and the questioning route for focus group interviews were self-designed according the recommendations of World Health organization and based on a health facility assessment tool SARA - The Service Availability and Readiness Assessment. The study revealed that consumers and mental health professionals have positive attitudes towards the development of protected residential institutions, which could be an important alternative for residential care and would promote deinstitutionalization and reintegration into society.