Hilton Head takes step to establish workforce housing ‘forever’ in new stage of Northpoint project

Hilton Head’s long-discussed Northpoint workforce housing project reached a milestone today, as town officials announced they’ve selected a finalist developer to carry out construction.

Just over a year after bids began to trickle in from private developers looking to partner with the town on affordable housing, Hilton Head awarded the project to Atlanta’s OneStreet Residential. The company’s portfolio includes several workforce and active adult communities developed throughout Georgia and South Carolina.

Naming a private partner is a significant step for the project, as Hilton Head’s cost of living climbs and need for homes that island workers can afford remains. Several privately spearheaded proposals advertised as workforce housing are in the works, including an effort to rezone areas of Sea Pines Circle to allow for higher housing density, but some elected officials are wary that private interests could turn those promised affordable units into market-rate condos in the future.

This public-private partnership, built on about 11 acres town-owned land, represents a “long-term commitment from Hilton Head Island that will last for decades,” Town Manager Marc Orlando said. The Northpoint property is about 2 miles from the Hilton Head school complex, rec center and the North End post office, an attractive location for young families.

“Our goal for this project is to serve the island’s workforce forever,” he added.

Negotiating the development agreement is the next step in the process, Orlando said. While he was short on details, Orlando told press the agreement will include covenants to ensure the 50% designated housing remains affordable to workers in the future.

The development will feature from 150 to 170 homes ranging from 1- to 3-bedroom apartments. Half of the units will be reserved for tenants making between from 60% to 80% of Hilton Head’s area median income (AMI). The 80% cap is $77,900 a year for a single person and $111,000 for a family of four.

To ensure the project is specifically benefiting islanders, Orlando said the residents must be employed on Hilton Head Island.

“This project will factor in, do you work here? You must work here to live there,” Orlando said.

The other 50% of units won’t be subject to specific AMI ranges. Hilton Head Mayor Alan Perry acknowledged that aspect of the project means it won’t be enough on its own to bury Hilton Head’s housing need.

“No,” Perry said when asked if the project is sufficient alone. “This is one step to drive it forward.”

Orlando said he expects to strike a development agreement within the next few months, and the site will be shovel ready by the end of 2024. Construction is expected to last 16-18 months, which would place project completion in summer to fall of 2026.