A man walks past a building at 2401 S. Interstate 35 Frontage Road near Oltorf Street on Tuesday, April 14, 2026, that is the future site of a new homeless navigation center.
Jay Janner/Austin American-Statesman
City staff are recommending Sunrise Homeless Navigation Center to operate Austin’s long-delayed South Austin Housing Navigation Center, a move that advances one of the city’s most controversial homelessness projects toward opening. Staff will present their proposal to the City Council in July.
The facility — at 2401 S. Interstate 35 — will provide housing assessments, employment resources, medical care referrals and other services to people experiencing homelessness.
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Travis High School students walk past men sitting and standing along the sidewalk on Oltorf Street near 2401 S. Interstate 35 Frontage Road in Austin on Tuesday, April 14, 2026, the future site of a homeless navigation center.
Jay Janner/Austin American-Statesman
Sunrise Executive Director Mark Hilbelink said in a statement that the center is pleased to have been selected as the operator for the new housing navigation center.
“Our overarching goal is to house as many people as possible as quickly and permanently as possible, reducing the amount of Austinites living unsheltered in our community,” he said. “Sunrise has already rehoused over 800 people in 2026 and we are excited to move more people off the streets through this new center.”
Hilbelink also said Sunrise is committed to working with the city to “prioritize public safety and mitigate unintended impacts.” The Sunrise facility, currently located on Menchaca Road near an elementary school, has drawn loud complaints from neighbors for drug use, crime and sanitation problems and even triggered a nuisance lawsuit from Attorney General Ken Paxton.
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The selection of Sunrise as the operator for the new South Austin Housing Navigation Center has become a source of confusion and controversy, as elected officials and city staff have offered conflicting accounts of how the facility will operate.
Council Member Ryan Alter has repeatedly said he believes Sunrise is likely to win the city contract and relocate its operations from Menchaca Road to the new South Austin facility near East Riverside Drive and Oltorf Street, while the city’s homelessness czar, David Gray, has maintained that the solicitation is open and competitive, noting that other providers could also submit proposals. Officials have also created confusion over what services the center will ultimately provide.
Council Member Jose Velasquez, whose district the new navigation center will be in, said in a statement Thursday that he appreciated the work that has gone into the new center.
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“I recognize that many residents, neighborhood stakeholders, and community organizations still have questions not only about the center’s operations and long-term impacts, but also about the proposed operator, their track record, their approach, and how they plan to engage with the surrounding community,” he said.
He added that he has remained in direct contact with the advisory board, neighbors and stakeholders and that there are still questions that must be answered before the item comes before council.
During community meetings last fall, city officials described a tightly managed, largely indoor facility focused on connecting people to housing and support services without creating large outdoor gatherings. But in testimony during the state’s lawsuit against Sunrise, Gray acknowledged that a broader range of services — including medical care, food assistance and job training — could attract more people to the area and place strain on surrounding neighborhoods.
City spokesperson Chrisola Webb said Thursday that the city is still in active negotiations about the operation of the new center and would provide additional details after operational plans are confirmed.
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“Through its proposed operation of the South Austin Housing Navigation Center, Sunrise would provide coordinated housing navigation services designed to connect individuals and households with housing opportunities, supportive services, and other resources that promote long-term housing stability,” Gray said in a LinkedIn post Thursday.
City staff will present the recommendation to the full council on July 23. Gray said that construction and building improvements are currently underway and that operations are anticipated to begin in June 2027.