Family members say in the weeks before the courthouse shooting, Dennehy was paranoid, delusional, and having hallucinations.
The report says Dennehy does understand the charges, but can't assist in his defense.
It says he repeatedly said that he's not crazy, but did say the Illuminati and Freemasons work for Satan and are after him.
He said he tried to have police kill him, so the Illuminati and Freemasons would leave his parents alone.
He said he was worried his trial wouldn't be fair, because the judge might be a Freemason or some of the jurors.
The psychologist recommended Dennehy get treatment and said he could possibly regain competency to stand trial at a later date.
Prosecutors plan to call witnesses to show Dennehy is competent to stand trial.
The judge said the competency trial could take two or three days.