Buying former hotels to convert into micro-shelters and treatment centers is all the rage in municipal politics, fueled by a decade-long “Housing First” policy push.

In the land rush to gobble up aging and vacant hotels, many cities have failed to inform neighboring residents and businesses, which are surely affected by the purchases. A bill headed to Texas Gov. Greg Abbott‘s desk soon may change how that process works in the Lone Star State and give neighbors a chance to weigh-in.

‘SCANDALWOOD’

Nowhere was this latest Housing First trend more of a sore spot than in Austin — capital of a red state but at the same time “the blueberry in the tomato soup.” Hard-left progressive nonprofits lobbied hard to build an array of homeless shelters under contracts with the city’s housing corporation. Mayor Steve Adler in 2019 announced his intentions to convert a hotel or other property in every (then-)Council district.

Adler would later admit “we didn’t have a plan.” Nor did he expect resistance from one of the city’s few swing-districts.

One of the plans, in a rather conservative northwest enclave of the city, became a standoff. The city purchased a Candlewood Suites location in early 2021 for what is known as “Permanent Supportive Housing” for elderly residents. After four years and numerous headline (and head-shaking) stories, the shelter finally opened.

Soon after the purchase, Williamson County announced a lawsuit claiming the shelter was planned without consulting county leadership or law enforcement. The vacant building was host to break-ins, copper theft, small fires, and even a flat-screen TV sale on an adjacent sidewalk. Questions over the 80-bed shelter’s $17 million initial price tag circulated, throwing into doubt the financial wisdom of the decision, in addition to queries over whether it was close enough to bus lines, grocery stores, and other necessary services. Whether city funds can discriminate based on age was a subject the federal Housing and Urban Development agency had to determine. Things got so bad that Texas Monthly included it in a write-up of their notorious “Bum Steer Awards.”

A local radio host nicknamed the boondoggle “Scandalwood,” picking up on the almost continual mishaps at the former hotel. But Family Eldercare, the leftist nonprofit running the shelter, chose the friendlier name of Pecan Gardens, referencing plans to convert green space into aesthetic spaces as well as fruit and vegetable gardens for residents.

A LEGISLATIVE REMEDY

SB 617, by state Sen. Charles Schwertner, which many have dubbed “The Candlewood Bill,” passed both legislative chambers without amendment. If it becomes law, it will require a city to hold a public hearing at least 90 days before converting an existing property into a homeless shelter. Notice would be mailed to all neighbors within a mile-radius at least three days in advance.

Opponents claim it would slow down or even stall development of homeless shelters in cities where the numbers of the unhoused are greatly increasing. Supporters were relatively silent until Republican sponsors were able to move the bill through the committee process. In two previous legislative sessions similar bills have failed.

“Such a remedy would have greatly helped our neighborhood and my family’s private enterprise in 2021, as we were in the building phases of a new hotel when we received notice that an adjacent Candlewood Suites hotel was purchased by the city,” wrote Rupal Chaudhari in a letter to supporters shared with The Hayride. Her family owns two hotels in the same parking lot as the former Candlewood. “We learned the hotel would be converted into Permanent Supportive Housing — which was saw on the front page of a newspaper, not in a letter from the city of Austin.”

To add insult to injury, she and her husband saw the newspaper story on their wedding anniversary.

Neighbors rallied as Stop Candlewood, and later MOVE Candlewood, to defeat the conversion. Led by the Chaudharis, they were successful in negotiating for several safety and privacy features, and in delaying the opening.

“In the four years it took to open the facility we were not allowed a zoning hearing or an actual town hall to express our thoughts on whether the location would be suitable for public safety, transportation, health care, or employment purposes,” Chaudhari continued. “All of this while Austin’s homeless camping problem and related crime continued to worsen. Our efforts at suggesting alternatives were ignored. The decision was made without consulting Williamson County or any of the neighboring jurisdictions, which led to lawsuits from the county as well as my family business.”

The lawsuits were ultimately unsuccessful, with judges finding lack of jurisdiction. The House committee report for an identical companion bill by state Rep. Caroline Harris Davila testified to the concerns raised by the lawsuits. But Chaudhari said there is more to the story as we now must deal with litter, emergency vehicle parking, and suspected drug use on and around neighboring hotel properties, as well as tell-tale abandoned shopping carts.

Chaudhari insists the neighborhood is safe, and pointed to an Austin Police Department trailer being used as a substation across the street from the shelter. The city rejected efforts to place the substation on shelter property or in a room as a more permanent solution.

“Austin PD and Williamson County Sheriff’s office have been absolute rockstars,” she said.

WHAT’S NEXT

SB 617 was sent to the Governor on Thursday, where it could be signed or automatically become law without Abbott’s signature.

The bill does not apply to the conversion of a property to provide temporary shelter or housing during a natural disaster, declared state of emergency, or even a public health emergency, the bill’s analysis noted.

Abbott, though he has not commented on the bill, has made his stance on homelessness policies clear, especially as a resident of downtown Austin which has seen its unhouse population double and for while even triple, along with an uptick in violent crime.

“No one has a right to urinate & defecate wherever they want,” Abbott posted to social media before signing a 2023 bill to ban homeless camping on public sidewalks and open spaces.

This year, Abbott has vocalized support for a bill that would strengthen the camping ban and make it easier for landlords to evict “squatters” The bill, SB 241, languished in a House committee while deadlines passed.

Conservatives have gravitated toward centralizing privatized services for homelessness, including shelters, drug detox and recovery, medical health, and mental health. Many have cheered models such as Haven for Hope in San Antonio or Community First! Village near Austin. A related bill, SB 2486, by Sen. Tan Parker, passed the state Senate but also is apparently dead after House deadlines.

The Texas Legislature gavels out June 2, with a Governor’s veto period through June 22. Abbott has 10 days to veto any bill sent to him.