A look inside renovated Candlewood hotel in Austin, soon to be permanent supportive housing

Three years after being purchased by the city, the former Candlewood Suites hotel in Northwest Austin is planned to open as a permanent supportive housing complex for older adults this spring.

The hotel, located near U.S. 183 and the Texas 45 toll road, was bought by the city in 2021 for $9.5 million. There was much confusion among the community and government entities, including some at the city, about what the purchase was planned for, with some thinking that the site was originally slated to be a homeless shelter.

But the purchase of the site, now called Pecan Gardens, was made with the intention of having it serve as permanent supportive housing, according to a January 2021 memo from Dianna Grey, the city's homeless strategy officer at the time, and Alex Gale, then the city's real estate officer. Mandy DeMayo, interim director of the city's Housing Department, also confirmed to the American-Statesman that Pecan Gardens was always planned to be used for permanent supportive housing.

The hotel was also temporarily used as one of the city's COVID-19 isolation facilities, according to a city memo.

The purchase was met with resistance from nearby residents and business owners and legal action from neighboring Williamson County. Some of that controversy, at least with the county, has been dispelled as the city gears up to welcome residents 55 and older to age in place at the recently renovated complex.

More: Austin City Council approves purchase of hotel to house homeless despite backlash

"It turned out that we now have the best use of (this) facility," Austin Mayor Kirk Watson said. Watson took the Statesman on a tour of the facility.

Residents could begin moving in as soon as late April, said Aaron Alarcon, CEO of Family Eldercare, the nonprofit organization the city is paying to remodel the facility and run its daily operations. The hope is to have a grand opening to the public in May.

Candlewood's controversial background

Getting the Candlewood Suites to the point where it could welcome residents was no easy feat.

Nearby residents and business owners protested the acquisition.

MOVE Candlewood, a group protesting the city's planned use of the hotel, sent a statement to the Statesman objecting to the facility and its cost.

"We're now in our fourth year of fighting for a safer and more cost-effective solution. Meanwhile, there have been no efforts to inform neighbors of projects like these, nor have our demands for greater accountability and transparency been satisfactorily answered," organizer Andy Hogue said in the statement.

The vacant property was vandalized after the city purchased it. Council Member Mackenzie Kelly, whose district the hotel is in, said at the time all three floors were damaged: The hotel had been stripped of copper; appliances and electrical wiring had been destroyed; and an ice machine that was ripped from a wall caused water damage.

"The lack of taking care of things was part and parcel to a lot of adversarial discussions and activity," Watson said. "There's been a lot of effort go in to doing this differently and better."

More: Austin beefing up security at former Candlewood Suites after break-ins, burglaries

This past fall, after the discovery of structural issues like mold and drainage problems, the City Council approved additional funding of just under $2.7 million to go to Family Eldercare.

"We got pushed back, probably about two or three weeks, with the structural issues," Family Eldercare Senior Program Director Shontell Gauthier said.

On top of the structural issues, protests and damage from break-ins, the city also faced opposition from Williamson County, which filed a lawsuit against the city in an attempt to prevent it from using the hotel to provide housing for homeless people. A Williamson County judge dismissed the lawsuit in August.

Williamson County Judge Bill Gravell, who was previously opposed to the plan, told the Statesman in a statement: "I am grateful for his (Watson's) collaboration to provide the best product for the people of Austin, Williamson County and Central Texas. Mayor Watson has shown tremendous leadership, and I commend him for his efforts and handling of this important housing project for the elderly."

What's new at the facility and how it will be run

The new facility will have 78 units for individuals who have experienced chronic homelessness and are older than 55 or have a disability, according to the city's homeless strategy office.

Units will come furnished with a nightstand, bed, television, recliner and more, according to Gauthier. Residents will pay 30% of their income to live at Pecan Gardens, with all utilities paid.

The city's contract with Family Eldercare for facility operations and management is for 10 years, according to Watson.

There will be overnight and weekend security on site, as well as camera security, at the request of the community, Gauthier said. Things like case management, service coordination, behavioral health services and counseling also will be provided to residents.

"It's going to be a Family Eldercare community for 78 individuals transitioning from homelessness into housing," Gauthier said.

Editor's note: This story has been updated to include a statement from MOVE Candlewood, a coalition of residents who oppose the city's permanent supportive housing project.

This article originally appeared on Austin American-Statesman: First look at Candlewood Suites hotel in Austin for housing assistance