Framework in Place

BY JAMES A. MALLORY | PHOTOS SUPPLIED

HILTON HEAD HAS PLAN TO STIMULATE WORKFORCE HOUSING CONSTRUCTION

Hilton Head Island has a framework to move forward with building and encouraging the construction of workforce housing.

The plan, adopted in November by the town council, comes as local businesses struggle to retain employees. The lack of workforce housing has been a growing issue for years, not just on Hilton Head but in tourist spots around the country.

Escalating real estate prices make it nearly impossible for workers to live near their jobs.

Coming out of the COVID crisis, service on the island declined because of fewer workers, said councilman Alex Brown, who represents Ward 1.

Also, developers are looking at repurposing existing housing to take advantage of higher real estate prices, he said.

“Workforce housing is really about the future sustainability of the island. Who we are, and who we aren’t if we don’t have it,” said Missy Luick, Hilton Head’s Community Planning Manager.

Luick is on point for the town’s Workforce Housing Framework project, which builds on a housing strategic plan unveiled in 2019. One outcome of that plan is the proposed Northpointe public-private partnership to build workforce housing on town-owned land near the northside post office. The town is evaluating developers’ proposals, Luick said, and hoping to sign off on one in the first quarter of 2023.

The need to address workforce housing gained added urgency last August when residents of Chimney Cove Apartments, many of whom work in the island service industries, received 30-day eviction notices. The owner wanted to sell the property. Housing advocates and community and religious leaders kept the crisis at the forefront, and the 300 eviction notices were rescinded a month later.

Chimney Cove showed that the existing structure was “so fragile that almost 300 people could be displaced in one community that was being sold and redeveloped as something different,” Luick said.

To avoid surprises like Chimney Cove, officials are working on a displacement strategy and emergency plan, Luick said. For example, the town could develop covenants that stipulate that property targeting the working class stay affordable for a period of time, she said.

“We want to have something in place so that we are proactive, not reactive,” she said.

The Chimney Cove crisis led to the fast-tracking of a plan that became the Workforce Housing Framework which the town hopes will stimulate the building of affordable housing, whether it be by the town or private developers. The resolution passed by the council also directed Town Manager Marc Orlando to allocate $1 million annually for workforce housing, beginning with the current fiscal year. Additional funding could come from federal, state or non-profits, Luick said.

The next step is to hire a workforce housing manager who will plan, coordinate and implement the workforce housing program, which includes exploring the creation of a professionally managed housing organization.

Workforce housing is often equated with low-income property, leading opponents to associate it with poverty and crime. Hilton Head wants to develop housing for the range of workers that serve the island, including those in hospitality, landscaping, hospitals, medical offices, schools and first responders, Luick said.

“We want it to be integrated within the community,” she said about the housing design. “I think, with our existing regulations regarding design and aesthetics, we can move past some of those fears.”

Luick said the workforce affordability range could be 60 to 120 percent of Beaufort County’s area median income set by the Department of Housing and Urban Development. As of May 2022, the county’s AMI was $95,600. Other projects could be mixed-income with both market rate and workforce housing adjusted rates.

Proponents expressed optimism about the Workforce Housing Framework’s potential because it is supported by “four foundational pillars,” each with goals, strategies and first steps. The pillars call for: keeping the community involved and engaged; creating an environment that stimulates the development of workforce housing; a dedicated staff for planning and coordination; and a revenue model for funding housing initiatives and partnerships.

Funding the Framework differentiates it from previous plans, Brown said.

“We are committing to how we’re going to manage this,” he said. “We will have a staff person who will live and breathe this. If there is a third-party housing authority, we will have boots on the ground for whatever development happens.”

Rev. June Wilkins, the pastor of Christ Lutheran Church on Hilton Head, said she is optimistic about the future of additional workforce housing on the island now that the town is involved. Christ Lutheran is a neighbor of Chimney Cove and helped the residents during the crisis. More town council members understand the gravity of the situation, Rev. Wilkins said, while cautioning that there will be other issues.

“In the reality of building the housing, there could be public opposition,” she said. “We need people to work here, but there are still a lot of hurdles to get over.”