Hilton Head planning staff recommends denial of controversial workforce housing text amendment

In a recent special meeting held on March 3, 2025, the Hilton Head Island Planning Commission discussed a proposed text amendment aimed at addressing workforce housing needs in the community. The meeting highlighted the ongoing challenges related to housing affordability and the redevelopment of aging properties, which are critical issues outlined in the town's comprehensive plan.

The proposed amendment seeks to facilitate the adaptive reuse of existing hotel properties for workforce housing. However, concerns were raised regarding its alignment with the comprehensive plan, particularly the lack of affordability requirements. While the amendment stipulates that 75% of occupants must be employed by local employers, it does not define rental rates or ensure that housing remains affordable for households earning up to 80% of the area median income, as recommended in the town's strategic plan.

Commission members expressed the need for further analysis to determine if the amendment effectively addresses the documented community need for attainable housing. The discussion also touched on the potential impacts of the amendment on property maintenance, infrastructure, and compatibility with existing land uses. The proposal introduces adaptive reuse in five zoning districts, four of which do not currently have hotels, raising questions about its overall effectiveness and logical development patterns.

Staff recommendations leaned towards denial of the amendment, citing concerns over unit sizes, parking requirements, and the absence of regulations on rental rates. The commission acknowledged the applicant's efforts to revise the proposal in response to previous feedback but emphasized the necessity for a more comprehensive approach to workforce housing.

As the meeting concluded, it was clear that while there is a strong desire for workforce housing on Hilton Head Island, significant hurdles remain. The Planning Commission plans to continue evaluating the proposal and its implications, with an eye towards refining the text amendment to better serve the community's needs. Further public comments and discussions are anticipated as the town navigates these complex housing challenges.