Plans to turn a former Northwest Austin hotel into a supportive housing complex for people exiting homelessness can move forward after a judge rejected a lawsuit from Williamson County aimed at halting the city's project.
The setup
For years, Austin has been working to convert a former Candlewood Suites hotel at 10811 Pecan Park Blvd., Bldg. 2, into a permanent supportive housing, or PSH, facility as part of its overall homeless strategy.
Dozens of formerly homeless tenants will live at the project, now called Pecan Gardens, under an annual lease structure with rental assistance and have access to various support services on-site, according to the city.
Since the city's plans became public, Austin has received pushback from some nearby residents; business owners; and elected officials, including Austin City Council Member Mackenzie Kelly and Williamson County commissioners.
The project has also hit roadblocks, including maintenance issues and a vandalism incident that renewed debate about public safety and the city’s management of the now-vacant property last year.
Soon after Austin council members approved the property's purchase for $9.55 million in August 2021, Williamson County officials stated their displeasure with how city leaders handled the process and voted to sue Austin over the homeless housing plan.
“The city of Austin, under the cover of darkness, behind the leadership of [now-former Mayor] Steve Adler, moved forward on a homeless shelter for more than a year without consulting anyone on this dais or anyone within Williamson County to my knowledge,” County Judge Bill Gravell said at the time.
What happened
On Aug. 23, District Court Judge Scott K. Field sided with Austin and dismissed the county's suit for lack of jurisdiction, meaning the courts have no authority to act on Williamson County's request to block housing on the site.
"We appreciate the Court’s careful consideration. The decision means we can proceed with this important project to address homelessness in our region," an Austin spokesperson said in a statement. "After many community and stakeholder conversations, Pecan Gardens is posed to provide new permanent supportive housing that is needed in our community."
Kelly and Gravell declined to comment on the outcome Aug. 29. Marc Whyte, an attorney working for the county on the case, said he respected Field's decision but was disappointed in the outcome and is weighing potential options moving forward.
“It’s frustrating because it doesn’t seem right that a city, or any municipality, could just flat-out disregard a plat note, which in effect is what would be happening here if the city of Austin moves forward and builds that residence for those folks," Whyte told Community Impact.
The details
The lawsuit brought by Williamson County Attorney Dee Hobbs in 2022 claimed Austin was pushing to open Pecan Gardens despite a civic plat note on the property prohibiting residential uses there.
In response, the city said the plat note in question was a separate administrative item—not a binding land use constraint—and wasn't ever meant to prevent housing. City lawyers also said the plat restriction was created by and could only be enforced by Austin, not Williamson County.
Additionally, city lawyers said the suit should be rejected under the Fair Housing Act, which blocks the enforcement of land use restrictions that have a discriminatory effect. They said Hobbs' filing included multiple complaints from area residents featuring “stereotypical fears or prejudices” about future Pecan Gardens clients that may be viewed as discriminatory.
“Generalized fears about safety concerning the mentally ill are the kind of stereotyping the FHA was designed to prevent,” attorneys for the city wrote.
What's next
Pecan Gardens is expected to open with 78 one-bedroom apartments for chronically homeless clients with substance use disorders, mental or physical illness, or developmental or physical disabilities. The facility will be one of several converted hotels that will serve as PSH throughout Austin.
Pecan Gardens was initially expected to open at some point in 2023. According to the city, move-ins may now begin after renovations wrap up in early 2024.
Nonprofit Family Eldercare was brought on to manage the rehabilitation of Pecan Gardens for $3.9 million. City Council also approved a contract with the organization worth up to $5.88 million over five years to provide supportive housing services once Pecan Gardens opens.
"We look forward to the work that Family Eldercare will do to operate this housing community. Family Eldercare has a successful record with similar projects. We are hopeful that neighbors experiencing homelessness will soon benefit from the renovated housing community and services Pecan Gardens will provide," the city spokesperson said.
On Aug. 31, council will vote to extend the renovation agreement at least through next March in part thanks to "significant issues" with the building uncovered during the rehab process.
Also of note
The rehabilitation of Bungalows at Century Park, another city-backed hotel conversion that will add 60 PSH units, is also underway. Foundation repairs were completed in July, according to the city, and additional renovations will begin in September and stretch into next summer.
In August, city staff also said a new-build PSH project, Espero Rutland in North Austin, could open in the coming months.
