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Judge dismisses Williamson County lawsuit aiming to halt hotel for homeless

The City of Austin purchased the Candlewood Suites hotel in August 2021 to convert it into a facility to help people experiencing homelessness.

AUSTIN, Texas — A project to turn a former northwest Austin hotel into transitional housing for people experiencing homelessness can move forward after a district court judge dismissed a lawsuit by Williamson County challenging the plans.

The City of Austin purchased the Candlewood Suites hotel in August 2021 to convert it into a facility to help people experiencing homelessness. Last year, the Austin City Council authorized a contract with Family Eldercare to fund renovations at the hotel and turn it into Pecan Gardens, a permanent supportive housing facility for people in need.

The hotel, located on Pecan Park Road near US 183 and State Highway 45, is located in Austin but also in Williamson County. Williamson County commissioners pushed back against the purchase of the hotel at the time, saying the deal wasn't discussed with them.

The lawsuit brought by Williamson County sought a temporary restraining order and a temporary and permanent injunction against the nonprofit created by Austin, AHFC Pecan Park PSH, which would stop them from creating the homeless housing facility.

"The truth is, the City of Austin continues to show a complete and utter disregard for the law, for its neighbors and for the citizens. And as community leaders, it's time for us to stand up," County Judge Bill Gravell said at the time.

According to a report from Community Impact, on Aug. 23, District Court Judge Scott K. Field dismissed the lawsuit for lack of jurisdiction, meaning Williamson County’s requests to halt the housing project are outside of the courts’ authority.

A spokesperson for Williamson County told KVUE the County had no statement in response to the decision.

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