Politics & Government

Hilton Head to select partner to build workforce housing, decide who will live there

Hilton Head Island soon will name a contractor to begin planning construction of workforce housing on the island’s north end.

Ten bids have been received since the Town Council approved plans in March to pursue a public-private partnership addressing the island’s lack of affordable housing for low-income residents and people who work there.

Town Manager Marc Orlando said city staff are preparing a request for proposals from the companies, and after designs are reviewed, seven finalists will be selected for interviews in the coming weeks.

The 10 companies that put in bids have not been identified publicly.

The development will be built on the Northpointe Tract, a 12-acre parcel just off of William Hilton Parkway, near Marsh Point Drive. The area is less than a mile from the north end post office, Hilton Head Island Public School’s campus and the island recreation center.

Details like the type and number of units have not been finalized.

Hilton Head will construct a new workforce housing development on a 12-acre tract of land just off William Hilton Parkway and Marsh Point Drive. The town received 10 bids for the public-private partnership and will narrow down seven finalists.
Hilton Head will construct a new workforce housing development on a 12-acre tract of land just off William Hilton Parkway and Marsh Point Drive. The town received 10 bids for the public-private partnership and will narrow down seven finalists. Sam Ogozalek sogozalek@islandpacket.com

Construction is expected to begin next year, Orlando said. The city is still deciding who will be eligible for the housing based on how potential residents’ salaries compare to the area’s median income.

Hilton Head Island had a median household income of $86,161 in 2020, according to the U.S. Census Bureau.

Affordable housing on Hilton Head has been complicated by high-income properties and households driving up rent across the region. In a 2018 assessment of housing on the island, town officials acknowledged the two fastest-growing economic groups in Hilton Head were people with incomes below $25,000 and above $150,000.

“Higher-income households can put upward pressure on prices and rents, putting housing further out of reach for those with more modest incomes,” the report read.

Orlando said the city is aware of the urgent need for affordable housing to retain workers needed by businesses on the island.

“We know that we have a worker shortage, and a housing shortage that may be causing that worker shortage,” Orlando said. “It’s not rare and unique to us, but it is a crossroads and challenging time for our town.”

This story was originally published August 22, 2022 at 10:28 AM.

Blake Douglas
The Island Packet
Blake is the Hilton Head Island reporter for the Island Packet. A Tulsa, Oklahoma native, Blake has written for his hometown Tulsa World, as well as the Charlotte Observer. He graduated in May 2022 from the University of Oklahoma with a journalism degree.
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