Nonprofit outlines Esperanza 2 expansion, asks city to help shoulder operating costs
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Summary
The Other Ones Foundation described plans to add hundreds of non-congregate shelter units adjacent to the Esperanza community, said TDHCA awarded nearly all capital funding, and warned the city will need to cover a larger share of operating costs in FY2029—2031 unless alternative sources are found.
Elizabeth Baker, executive director of The Other Ones Foundation, told the Austin City Council Public Health Committee on April 1 that her group plans to expand the Esperanza shelter community with new non-congregate units and on-site workforce programming.
Baker said the foundation was founded in 2017 and has developed shelter and workforce programs for people experiencing homelessness. She said Esperanza currently operates 200 individual, lockable shelter units with wrap-around case management and on-site workforce supports and that the expansion will add new residential units and a larger skills center.
Why it matters: Baker said the Texas Department of Housing and Community Affairs (TDHCA) awarded a capital grant that is covering roughly 98% of the expansion's capital costs. But she said operating funding is not covered by the TDHCA award and that, under the foundation's current projections for FY2029—2031, the city would need to increase its contribution substantially to keep services running.
Baker described the Esperanza 2 site as a 7.5-acre parcel adjacent to the existing community. The project includes a four-story building with about 100 residential non-congregate units on upper floors and shared community resources on the lower floors (an industrial kitchen, medical clinic space, library and computer lab). The remainder of the site will include individual cabins similar to those on the existing campus. She said pending HUD waivers need to be resolved to finalize some unit design choices.
On outcomes and clients: Baker reported Esperanza served 209 people last year, cited an average length of stay of roughly eight months and said the program's positive exit rate'permanent housing placement'is about 58 percent.
On workforce integration: Baker said workforce development is integrated into shelter operations. The foundation operates transitional on-site jobs and partners with Austin Community College, Goodwill and other organizations to provide training in trades such as HVAC, welding and auto mechanics. She highlighted the John Paul DeJoria Skills Center, launched in February 2025, as a site-based training resource.
Council questions and funding concerns: Councilmembers pressed Baker on several operational issues: whether substance-use treatment could be made available on-site (Baker said partners such as Integral Care and Central Health are involved but that on-site residential treatment remains a work in progress); how referrals are made (Baker said the program accepts coordinated-entry referrals where appropriate but largely receives outreach referrals from navigation teams and community partners); and how the foundation calculates outcomes and compares them to other providers (Baker and councilmembers noted that shelters and populations differ and that standardized benchmarks are difficult to identify).
Baker said the expansion plan would add roughly 325 units in the FY2029—2031 window and that the foundation is working to diversify operating revenues beyond city support and an existing ESG contract with TDHCA (Baker said that ESG contract is currently just under $400,000). She said capital contracting and permitting would proceed this year with construction completion anticipated later in the decade.
The committee did not take a formal vote on the expansion; Baker said staff would continue contracting steps with TDHCA and follow up on outstanding design and funding questions. The committee approved the prior meeting minutes and adjourned at 11:28 a.m.
