Hilton Head SC will select a private company for workforce housing

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

Ten bids have been received since City Council approved plans in March to pursue a public-private partnership to address the lack of affordable housing on the island for low-income residents and those who work there.

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

The 10 companies that bid have not been publicly identified.

The development will be built on the Northpointe Tract, a 12-acre parcel just off William Hilton Parkway near Marsh Point Drive. The area is less than a mile from the North End Post Office, the Hilton Head Island Public School campus, and the Island Recreation Center.

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

DSC_1264.JPG
Hilton Head will build a new workforce housing development on 12 acres just off William Hilton Parkway and Marsh Point Drive. The city received 10 bids for the public-private partnership and will select seven finalists. Sam Ogozalek sogozalek@islandpacket.com

Construction is expected to begin next year, Orlando said. The city still decides who will be eligible for 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 US Census Bureau.

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

“High-income households can put upward pressure on prices and rents, putting housing even further out of reach for those with lower incomes,” the report said.

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

“We know we have a labor shortage and a housing shortage that could be causing this labor shortage,” Orlando said. “It’s not rare and unique for us, but it’s a crossroads and a difficult time for our city.”

This story was originally published August 22, 2022 10:28 a.m.

Michael A. Bynum