A 300-bed temporary homeless shelter will remain open on the east side at least until at least fall 2025, after city officials voted to once again extend its operations with millions of dollars in new funding.
The setup
In response to lacking capacity across Austin's shelter network, city leaders converted the Austin Convention Center Marshalling Yard warehouse into an emergency shelter facility last year.
The Marshalling Yard served more than 1,000 clients from its launch in August 2023 through this October, according to Homeless Strategy Officer David Gray. Its first year of operations cost more than $9 million, and while it was previously expected to close in early 2025 officials recently approved an extension until March for $500,000.
On Dec. 12, City Council voted to spend an additional $6.75 million on a six-month extension that will now keep the shelter open through next September. The Marshalling Yard could still continue operating beyond then as well, but the city is now searching for alternative sites for the hundreds of beds going forward.
“Although we’re very grateful for the opportunity to keep this shelter open, this is intended to be a temporary shelter. Our main priority is still to find a permanent replacement for the Marshalling Yard," Gray told council in early December.
The cost
When council asked to keep the shelter open a few months ago, no money was set aside for the update. Millions of local and federal dollars were found for the program since then.
Most of the 2025 extension will be funded through Austin's fiscal year 2024-25 budget, with $4.34 million pulled from departmental transfers that city staff said are no longer needed. An additional $1.08 million will come from the city's American Rescue Plan Act pandemic relief allocation.
Financial Services Department spokesperson Kimberly Moore said staff are still working to find the remaining $1.32 million for the contract with operator Family Endeavors through savings.
While council previously reserved a large portion of Austin's ARPA dollars for homelessness initiatives, the extra Marshalling Yard funding was shifted from several other programs. Staff said the money will be used to support shelter operations without affecting that other work.
“Obviously, $1 million a month going towards the Marshalling Yard is not a sustainable amount for us. Certainly want to continue investments in emergency shelter, but would be looking for us to help prioritize that relocation," she said Dec. 4.
Zooming in
Of the 1,028 clients served at the Marshalling Yard through October, Gray said 184 had positive exits. That can cover a move from shelter into permanent supportive housing with rental assistance and other services, into a family household, or into a private rental unit.
The facility's positive exit rate has gradually improved over time, Gray said. In its first few months, less than 15% of Marshalling Yard clients were moved into housing. By this summer, that had roughly doubled to just below 30%.
The city doesn't have any formal benchmark for positive exits from the shelter. Gray said no target rate was established this year since the shelter was previously expected to close down, but the Homeless Strategy Office will be setting a goal for the facility in the near future with the extension now approved.
The shelter has also served almost 190,000 meals, completed coordinated assessments—the formal entry into housing placement opportunities and other services—for 450 people, and helped dozens of clients secure vital records or work clothing.
Whenever the Marshalling Yard is shuttered, Gray said the city would need three to four months to wind down operations and move all sheltered clients into other facilities.
