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Hilton Head to use $1M in COVID-19 relief funds for new grant program. Where money will go

Hilton Head Island nonprofits that are helping residents hit hard by the COVID-19 pandemic will soon be able to apply for thousands of dollars in grant money thanks to a $1 million agreement between the town and the Community Foundation of the Lowcountry.

The town has agreed to transfer $1 million in federal American Rescue Plan funds to the nonprofit so it can set up a grant application process for local organizations that help underserved Hilton Head residents pay their bills or eat during the pandemic.

Organizations will be able to get up to $50,000 in grant money to provide rent and utility assistance, help cover residents’ health care costs and address food insecurity, among other things.

The first grant cycle’s application deadline is Nov. 30. Additional details can be found online: bit.ly/HiltonHeadGrants

The Community Foundation of the Lowcountry’s board of directors will appoint an advisory committee to review the grant applications, according to the town. Representatives from the town and the nonprofit will be on the committee.

Town Manager Marc Orlando previously said the town planned to transfer $500,000 to the nonprofit this fall. (The town has received only about $2.6 million of its total $5.2 million in American Rescue Plan funds so far. The other 50% of the federal money will be sent to Hilton Head in May 2022. The town will transfer another $500,000 to the Community Foundation of the Lowcountry in fiscal year 2023.)

The nonprofit plans to award a total of $1 million in grants before the end of 2023, meaning the grants will be distributed over a two-year period.

“Helping our residents who may be struggling because of the pandemic is the best way to use some of these funds,” Mayor John McCann wrote in a statement. “There are still individuals trying to get back on their feet after what our community has been through over the last 20 months.”

An emergency signs points to the ramp to Hilton Head Island Hospital’s emergency entrance as shown on Wednesday, March 18, 2020.
An emergency signs points to the ramp to Hilton Head Island Hospital’s emergency entrance as shown on Wednesday, March 18, 2020. Drew Martin dmartin@islandpacket.com

What else is Hilton Head doing with COVID-19 relief money?

The grant program is currently the most detailed of the town’s spending plans for its American Rescue Plan dollars. Staff members could return to the island’s Town Council sometime this fall with specifics on other ideas, Orlando has said.

Local officials now have broad authority on how to spend the federal funds. The U.S. Department of the Treasury has prohibited governments from using the money on only a handful of issues, such as funding tax cuts or making contributions to public employee pension plans.

Here’s what we know so far:

  • The town is planning to spend $400,000 on a home-repair program that Orlando has proposed. Island households with incomes at or below 60% of the area median income would be able to apply for grant funds to fix leaking roofs, unstable or unsafe floors, failing septic tanks and inaccessible private roads, among other things. The money also could be used to help native islanders obtain the paperwork needed to clear title on heirs’ property.

  • Hilton Head plans to spend $1 million on Town Hall security and technology upgrades. Elected officials have recently raised concerns about the council chambers’ security after a chaotic anti-mask protest on Aug. 17. The town also wants to use these funds to improve live-streaming capabilities at public meetings.

  • The town owns 3.27 acres at 23 Marshland Road. The property is known as the Patterson Tract. Hilton Head plans to spend $1 million to install amenities and other infrastructure there to create a neighborhood park. The town, Orlando has said, is also interested in partnering with a private developer to build workforce housing on part of the property. The Town Council would need to review that idea again in the future, Orlando previously said. Some of the $1 million in funds might be used to support road, water, sewer or utility infrastructure for the workforce housing, records show.

  • Hilton Head is expected to spend roughly $1.6 million in American Rescue Plan funds on various capital improvement projects, records show. Details about this remain unknown. Orlando has suggested that Hilton Head could use some of this money for regional housing initiatives if the Town Council is interested.

  • The town also wants to use $200,000 to offer grants to property owners living on the island who have not connected to a sewer line. Residents could use the grants to link to the public sewer system.

  • Hilton Head recently started to explore using American Rescue Plan funds to potentially help relocate dozens of families out of the mid-island Rollers Trailer Park, which is expected to shutter due to redevelopment. McCann on Tuesday suggested that a Town Council committee review the pending displacement and eventually present a recommended course of action.

Branches and limbs from live oaks casts a rhythmic pattern of shadows on the dirt road Wednesday, Oct. 20, 2021 at Rollers Trailer Park off Marshland Road on Hilton Head Island. The owner plans to redevelop the Broad Creek waterfront property, reducing the island’s already-limited affordable housing options.
Branches and limbs from live oaks casts a rhythmic pattern of shadows on the dirt road Wednesday, Oct. 20, 2021 at Rollers Trailer Park off Marshland Road on Hilton Head Island. The owner plans to redevelop the Broad Creek waterfront property, reducing the island’s already-limited affordable housing options. Drew Martin dmartin@islandpacket.com
Sam Ogozalek
The Island Packet
Sam Ogozalek is a reporter at The Island Packet covering COVID-19 recovery efforts. He also is a Report for America corps member. He recently graduated from Syracuse University and has written for the Tampa Bay Times, The Buffalo News and the Naples Daily News.
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