City to Fund $2.32M More in Repairs for Northwest Austin Supportive Housing Project

Introduction

The City of Austin has announced an additional $2.32 million in funding to be allocated towards repairs for a former hotel, The Texas Bungalows Hotel and Suites, which has been repurposed as a supportive housing project for individuals transitioning out of homelessness. This additional contribution brings the project’s overall cost to nearly $11 million, even before its doors officially open.

Background

Last year, the Austin City Council voted to purchase the Texas Bungalows Hotel and Suites located at 13311 Burnet Road for $6.7 million and christened the facility as the Bungalows at Century Park. The operation of the facility is under Integral Care. This acquisition was a part of the city’s series of recent efforts to expand Austin’s homeless shelter and housing capacity.

Other Acquisitions

The city has purchased several other properties for the same purpose. These include:

• Southbridge: A former Rodeway Inn purchased for $6.4 million and transformed into a COVID-19 protective lodge in 2020, and subsequently developed into a city homeless shelter in 2021.
• Northbridge: A former Country Inn & Suites purchased for $8.76 million. Turned into a ‘ProLodge’ for COVID-19 protection before becoming a homeless shelter in 2021.
• Pecan Gardens: Formerly Candlewood Inn & Suites, purchased for $9.55 million in 2021 to be converted into a permanent supportive housing. Upon completion, it will be managed by Family Eldercare.
• Balcones Terrace: A former TownePlace Suites being renovated for supportive housing by Foundation Communities. This purchase was supported with an initial $16 million from the city.

Delays and Increased Costs

Although Northbridge and Southbridge started operations in 2021 under the city’s Housing-focused Encampment Assistance Link (HEAL) program, the other projects have been plagued with delays. These include maintenance issues, legal challenges, and raised safety concerns since their inception.

Precisely, the Bungalows project required an additional $1.76 million for renovation following its purchase. As of May 2, the total increased to $4.08 million when the council approved the additional $2.32 million. The latest increase in costs is primarily due to severe weather-related damage and the unexpected need for foundation repairs.

Next Steps

Despite the setbacks, the city is hopeful about the timely completion of the projects. The current timeline suggests Pecan Gardens will open in June, while Balcones Terrace and the Bungalows are projected to open doors by the end of summer and fall, respectively.

These housing projects will contribute nearly 260 new supportive housing units to the city’s capacity, an expansion that critics argue is long overdue.

Conclusion

Although the city has had to grapple with complications and increased renovation costs, the hopeful anticipation of the upcoming openings underlines the city’s commitment to addressing homelessness in Austin. These conversions are a part of innovative initiatives to expand the city’s housing solutions, and all eyes are on Austin as it pioneers a new approach to homelessness.