Texas Attorney General Ken Paxton announced Tuesday a lawsuit seeking to close the Sunrise Homeless Navigation Center (SHNC) in South Austin, alleging the facility fosters criminal activity and endangers children at nearby Joslin Elementary School.
The lawsuit claims that SHNC, which operates within feet of the elementary school, has become a hub for drug use, violence, and public indecency. Residents have reported incidents involving machete threats, public lewdness, and break-ins. Paxton also accused SHNC of distributing drug paraphernalia, exacerbating the problems in the area.
“Drug activity and criminal behavior facilitated by this organization have hijacked an entire neighborhood,” Paxton said. “By operating a taxpayer-funded drug paraphernalia giveaway next to an elementary school, this organization is threatening students’ health and safety and unjustly worsening daily life for every single resident of the neighborhood. We will shut this unlawful nuisance behavior down.”
The SHNC received a city-approved grant of up to $1.08 million in August 2024 to fund operations for 14 months, with the potential for extensions totaling over $4.4 million. The grant’s purpose was to provide digital resources to the homeless, including a hotline and website. However, the facility drew criticism for its emphasis on race-based criteria in grant applications and its role in hosting harm reduction services.
The Texas Harm Reduction Alliance (THRA), a partner organization, allegedly provides syringes and other drug-related supplies at the SHNC. The lawsuit states that a THRA van distributes these supplies weekly, including during school hours across the street from Joslin Elementary. Residents have also reported finding used syringes near the school and accused SHNC patrons of setting up meth labs in abandoned properties.
In 2022, SHNC gained attention for introducing Texas’s first Narcan vending machine, offering free naloxone to treat opioid overdoses. The center and its partners have advocated for harm reduction strategies, including syringe distribution, as part of their mission to combat the War on Drugs.
In response to the lawsuit, SHNC Executive Director Mark Hilbelink defended the organization’s mission and its relationship with the community. “It is regrettable that Attorney General Paxton took this route, especially during the week of Thanksgiving, but Sunrise intends to keep offering services to people in our community who need them,” Hilbelink said.
The lawsuit’s outcome will determine whether SHNC can continue its operations amid mounting concerns from local residents and state officials about its proximity to the elementary school and its impact on the surrounding neighborhood.
