I don't know anything about the children's home, but thought it might be helpful to add some info about 38 1/2 Street. That is a long street and a map of the street can be found at: http://www.loopnet.com/Listing/15936119/1307-E-38-1-2-Street-Austin-TX/
Maybe someone will recognize where the children's home was located.
Also, if you know any of the names of the children that were housed at that home then you may find them on the 1940 Federal Census living at that home.
Please email me directly if I can be of further help.
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