What's going on with the hotels Austin bought to house the homeless?
AUSTIN (KXAN) — Several years ago, the city of Austin purchased several hotels and motels to serve people experiencing homelessness. They spent tens of millions of dollars on the properties and renovations, collectively.
Two of the hotels the city of Austin previously purchased are being used as bridge shelters, which provide a temporary unit for people to get on their feet before being moved to permanent supportive housing or other more permanent housing.
The Northbridge and Southbridge shelters are being used to get people off the street through the city's Housing-focused Encampment Assistance Link (HEAL) Initiative. Since 2021, the city has moved more than 1,000 people to the bridge shelter through HEAL, the city said in its most recent HEAL release.
Two additional hotels purchased by the city of Austin are now operating as permanent supportive housing. Permanent supportive housing typically targets people exiting homelessness with the greatest need. It provides people with wrap-around services like mental health treatment, case management and peer support.
Price tag goes up for north Austin hotel meant to house people who are homeless
The Candlewood Suites hotel in north Austin (Williamson County) is now called Pecan Gardens and is open to residents as of last fall. It's housing more than 70 previously homeless, elderly and disabled people under the eye of Family Eldercare.
The city voted to spend $9.5 million on the property in 2021. At least $2.6 million was added to the budget for unexpected renovations after Family Eldercare 'discovered significant issues with the structure of the building, including mold, drainage, and fireproofing issues', we previously reported.
Similarly, the former Texas Bungalows Hotel and Suites, which is now Bungalows at Century Park, is now providing 60 units for people who have a 'disabling condition' and have experienced homelessness most of their lives (chronic homelessness). That one also opened last fall.
Austin City Council votes to purchase motel to house homeless
The city bought the motel back in 2021 for $6.7 million, we reported in 2021. Over the last three years, the city spent $4 million renovating it, close to double the original budget, KXAN previously reported.
It's being operated by Integral Care, which cares for 'adults and children living with mental illness, substance use disorder and intellectual and developmental disabilities in Travis County,' according to their website.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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