Hilton Head officials review ineffective workforce housing incentives for local developers

The Planning Commission of Hilton Head Island convened for a special meeting on March 3, 2025, to address ongoing concerns regarding workforce housing in the area. The meeting highlighted significant challenges and frustrations surrounding the town's current workforce housing incentives, which have reportedly failed to attract developers.

The discussion began with a review of a 2024 article from the Hilton Head Island Packet, which criticized the effectiveness of the town's workforce housing development incentives. It was noted that despite the well-intentioned plans, a combination of restrictions, rising borrowing costs, and high land prices have rendered these incentives largely ineffective. Over three years since their implementation, no developers have utilized the workforce housing incentives, with some opting to bypass the restrictions entirely.

Commissioner Breen emphasized the shortcomings of the current program, stating that it does not adequately serve many of the island's workers, particularly those in hospitality and emergency services. He pointed out that the existing income thresholds for workforce housing—set at 60 to 80% of Area Median Income (AMI)—exclude many essential workers who either earn too much or too little to qualify.

The meeting also included public comments from community members, including Allen Wolf, president of the Surgent Restaurant Group. Wolf reiterated the urgent need for new solutions to produce workforce housing units, expressing frustration that the town's current program has not resulted in any new housing developments. He highlighted the dire living conditions faced by some workers, who are forced to live in overcrowded and substandard environments.

Another speaker, Matt Saka, director of food and beverage at Beach House, echoed these concerns, noting that the lack of available housing has hindered efforts to implement employee programs aimed at attracting seasonal workers.

The commission acknowledged the need for a comprehensive approach to address the housing crisis, with discussions focusing on potential zoning incentives and adaptive reuse of properties to create more housing options. The meeting concluded with a call for the Planning Commission to send a clear message to the Town Council, urging them to take decisive action to improve workforce housing availability on Hilton Head Island.

Overall, the meeting underscored the pressing need for effective strategies to enhance workforce housing, as community leaders and stakeholders continue to seek solutions to support the island's essential workers.