Town launches ambitious workforce housing project for essential workers

In a recent government meeting, officials unveiled the framework for the Northpoint Public-Private Partnership Workforce Housing Development Agreement, a significant initiative aimed at addressing housing needs for essential workers on Hilton Head Island. The project will utilize 11 acres of town-owned land near local schools and community centers to create an energy-efficient neighborhood featuring 150 to 170 rental units, including one, two, and three-bedroom apartments.

The development is designed to cater to the essential workforce, including teachers, first responders, healthcare providers, and hospitality workers, with rental prices targeted for households earning between 60% to 150% of the area median income (AMI). Notably, at least 50% of the units will be reserved for families earning less than 80% of the AMI, ensuring a mixed-income community. Importantly, all units will be designated as workforce housing indefinitely, supported by affordability covenants.

The town will contribute $1 million from the American Rescue Plan Act, a federal COVID-19 stimulus fund, to support the project, which will be managed by development partner One Street Residential. The partnership aims to ensure high-quality construction and effective property management, as evidenced by a recent site visit to similar developments in Atlanta.

Next steps include a six-month due diligence phase, followed by pre-development activities expected to commence in early 2025. Construction could begin as soon as summer 2025, with units potentially available for lease by the end of 2026. This initiative marks a significant step towards enhancing housing accessibility for the island's workforce, with officials expressing optimism about its long-term impact on the community.