Experts suspect the lion may be in search of food and water as California is currently being crippled by drought, explaining why the lion is in the populated area instead of its preferred home in the hills.
A source told the Sun, "There are all kinds of animals in the neighbourhood - coyotes, bears and deer - but it's rare to see a mountain lion.
"We're in a drought so the animals are thirsty but also there have been fires and a mudslide in recent years which seems to have brought down the bigger animals."
They added that while people generally feel safe during the day, they're making sure to take precautions at night.
Executive director of the Montecito Association, Sharon Byrne, told residents to "secure their homes and secure their chicken coops and whatever other animals they may have."
She went on to say, "We also urge residents to secure their garbage so animals can go rummaging around for scraps, to have night lighting, alarms, cameras and so on.
As for how the Montecito Association is planning to handle the situation, Byrne said, "Mountain lions are solitary creatures and ultimately, they don't want to be around people so we're hoping this one moves on by itself."