The NorthPoint Public-Private Partnership Housing Initiative would develop housing on town-owned land.
Photo: Town of Hilton Head Island.
Each workday, more than 14,000 people commute to their jobs on Hilton Head Island from other parts of Beaufort County and beyond, with the number rising steadily each year. Housing costs, especially in rapidly growing areas, make it difficult for essential workers to affordably to live close to their workplaces.
That’s where the push for workforce housing comes in.
“Workforce housing can generally be defined as housing that is obtainable for individuals and families who are part of the local workforce in a community — often referred to as essential workers — in sectors such as public safety, health care, education, retail and hospitality,” said Shea Farrar, principal planner for the Town of Hilton Head Island and president-elect of the South Carolina chapter of the American Planning Association. “Workforce housing varies among communities, but it typically serves individuals or families with moderate incomes still facing challenges in affording market-rate housing.”
Having essential workers live in the communities they serve improves the overall stability and productivity of the local economy, social fabric and sense of well-being, she said.
“The availability of workforce housing options directly impacts workers’ ability to become actively involved and invest in their communities, creating higher rates of workforce retention and success in attracting new talent,” Farrar said.
As the planner on Hilton Head Island who also is a leader in the statewide planning organization, Farrar knows the importance of addressing workforce housing in all types of communities, particularly those with tourism-oriented economies and areas facing rapid growth. She also understands that, despite their importance, workforce housing developments can be concerning for some community members and stakeholders who worry that affordable workforce housing can bring potential changes to neighborhood dynamics and impact local infrastructure.
“Through proactive communication and collaboration among government agencies, nonprofit organizations and private developers, communities can leverage resources and expertise to implement policies and incentives that help workforce housing remain affordable,” she said. “Data-driven planning approaches are always a good place to start when identifying the needs of a particular community.”
Farrar said tools for communities are available from the American Planning Association.
“Strategies vary and can include zoning and land-use regulations, collaboration with employers, public-private partnerships and transit-oriented design solutions,” she said.
Quincy A. White, the chief housing officer for Hilton Head Island, understands the challenge the town faces with providing housing for those who work in the resort town. Of the 14,000 workers who commute onto the island daily to work, about 17% travel 50 miles or more each way, he said.
“On their commutes, they pass by growing areas in Bluffton, Hardeeville, Port Royal and other communities where employment opportunities are expanding,” White said. “As job options in different parts of the county increase, it becomes less attractive for workers to continue commuting to Hilton Head Island.”
The cost of housing on the island is a challenge, too. About 40% of all households on the island, including 37% of homeowners and nearly half of the renters, are considered “housing cost-burdened,” meaning they spend 30% or more of their monthly income on housing costs, White said.
“Addressing the need for workforce housing supports the individuals who work here and alleviates housing cost burdens for current residents,” he said. “Given these challenges, we are committed to finding innovative solutions to provide accessible and affordable housing options for our workforce, thereby ensuring a vibrant and inclusive community.”
Affordable workplace housing projects can be private, public or a combination of the two. On Hilton Head Island, the town is collaborating with partners to establish the Northpoint Public-Private Partnership Housing Initiative, a development that leaders believe can be a model for places around the country.
The Northpoint initiative calls for developing sustainable housing on more than 11 acres of land owned by the town, planned as a vibrant, well-constructed and livable neighborhood with the town’s preferred development partner, OneStreet Residential. When finished, it is expected to feature 150 to 170 apartment homes. At least half of the apartments will be dedicated to serving families working on the island and earning 60% to 80% of the area’s median income.
The town also collaborates with the Coastal Community Development Corporation to support the organization’s mission of preserving workforce housing throughout the island.
“Alongside initiatives led by Sea Pines Corporation, the Richardson Group and the SERG Group, the Coastal Community Development Corporation plays a vital role in increasing the availability of homes for our local and regional workforce,” White said.
He added that Hilton Head Island’s Home Safety and Repair Program provides essential repairs and maintenance services to homeowners — something that is crucial to ensure naturally occurring affordable housing remains safe and accessible to the workforce.
Private business is playing a role, too. An old two-story bank building on William Hilton Parkway was recently converted to workforce housing. While the property is privately owned, the Sea Pines Resort has a two-year lease on the “36 South” apartments to house some of its workers. The building is home to eight three-bedroom, three-bathroom units. The location allows residents to walk or bike to stores and work.
While it is not the city’s project, White said the town was happy to see local businesses stepping up to address the need for workforce housing, calling it a “testament to the collaborative spirit of our community. Projects like these demonstrate that we all have a role to play in supporting those who contribute to our island's success.”
White also said the need for private-public partnerships and providing incentives for developers is necessary to address the island’s workforce housing.
“By fostering partnerships between the private and public sectors, we can leverage resources and expertise to tackle this challenge more effectively, with each member of our community playing a vital role,” he said.
In the City of Goose Creek, about 18 miles north of downtown Charleston, the importance of providing affordable housing for essential workers also is on city leaders’ agenda.
“Attainable housing for our residents — including young families just starting out or recent graduates entering the workforce — is crucial for our city,” said Goose Creek Mayor Greg Habib. “The population increase across the Lowcountry, including Goose Creek, has made this a real challenge. It’s estimated that around 40% of the population of Berkeley County cannot afford the average cost of a home, which is around $375,000.”
The importance of attainable housing is especially significant for the city’s police and fire first responders, as well as local teachers, he said.
As part of a commitment to affordable housing, the city has long partnered with Habitat for Humanity. Recently, the city donated nine lots to Habitat, with the property in an ideal location for residential housing, said Frank Johnson, Goose Creek’s public information officer.
“Donating these lots to Habitat made sense at a time when affordable housing is an issue across the Lowcountry,” Johnson said.
Goose Creek also is exploring requirements that would call for each new residential development to include a percentage of affordable housing units. The city also offers down payment assistance programs for city employees, as well as residency pay for police officers who live inside the city limits, he said.
Every local economy needs a full range of workers to make it work. A mix of public and private efforts can help build out the housing stock that the workforce requires.