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

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

The motel, located near U.S. 183 and the Texas 45 toll road, was purchased 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 operated as a homeless shelter.

But the planned purchase of Pecan Gardens was made under 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 the purchase of 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 the tour of the new facility, which is now called Pecan Gardens.

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

Candlewood's controversial background

Getting Candlewood to a place where it could welcome residents was no easy feat.

Nearby residents and business owners protested the acquisition. The vacant property was vandalized after the city purchased it. Council Member Mackenzie Kelly, whose district the motel 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 the 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 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 the homeless. 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 above 55 years old 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, and all utilities are paid for.

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 the use of camera security, at the request of the community, Gauthier said. Things like case management, service coordination, behavioral health services and counseling will also be provided to residents.

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

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