Hilton Head Forges Partnership for Workforce Housing Development
Hilton Head Island is taking significant steps to build a more affordable community for its workforce population with the help of Atlanta-based company OneStreet Residential. A recently finalized development agreement is bringing the island town and its partner closer to the launch of a workforce housing neighborhood named “Northpoint”.
The Northpoint Vision
Situated on a town-owned, 11-acre piece of land near William Hilton Parkway and Jarvis Creek, Northpoint will be a comprehensive neighborhood designed to cater to the housing needs of Hilton Head’s growing workforce. The community is planned to consist of between 150 and 170 one, two, and three-bedroom units. Available to households earning 60 to 150 percent of the Area Median Income (AMI), a family of three could earn between $57,480 and $143,700 to be eligible for a unit, based on Beaufort County’s 2024 AMI.
Addressing Housing Affordability
With escalating housing costs on Hilton Head, living where they work has become increasingly challenging for numerous residents. Town officials estimate upwards of 14,000 workers commute daily to the island, with nearly 4,400 of these commuting over 50 miles each way. This situation has compounded the island’s workforce shortages and has a noted impact on sectors such as hospitality and health care.
A study conducted in 2019 approximated that to improve workforce housing and affordability, the island must add at least 200 additional housing units annually over the next 10 years. Consequently, residents of one of the island’s remaining lower-cost housing complexes, Chimney Cove, were issued eviction notices in 2022, renewing the call for operative workforce housing solutions.
Creating a Vibrant Neighborhood
The Northpoint project is promising to be a lively neighborhood filled with amenities to help its residents connect, including a pool, communal outdoor spaces, open areas with views of Jarvis Creek, a neighborhood park with fitness stations, walking trails, a community garden, plus an onsite property management and multipurpose community center with high-speed internet.
The partnership defined for this project includes provisions from both Hilton Head town and OneStreet Residential. The town’s contribution involves a 65-year ground lease, $1 million to support eligible project costs through the American Rescue Plan Fund, affordability covenants, and zoning entitlements. OneStreet Residential’s responsibility will encompass design, permitting, financing, project management, construction, lease-up, long-term programming, and property management.
In anticipation of the project’s succession, Hilton Head Mayor, Alan Perry, called it a simple component in the wider set of measures needed to drive employees to the area and stressed the importance of public-private partnerships in realizing such opportunities.
Looking Ahead
Construction plans and timelines are currently being finalized, but construction is expected to begin in the summer of 2025. Assuming an estimated construction period of 18 months, the first units could be ready for occupancy by late 2026.
