Hilton Head Town Council debates $750K grant request for Coastal Community Development Corporation

In a recent meeting of the Finance and Administrative Committee on March 18, 2025, the Town of Hilton Head Island discussed critical funding decisions related to workforce housing, a pressing issue for the community. The committee reviewed a grant request from the Coastal Community Development Corporation (CCDC) for $750,000, aimed at supporting housing initiatives. However, the request faced significant scrutiny from committee members, highlighting the need for a more structured approach to funding.

Committee member concerns centered on the high cost of the proposed funding, which would amount to approximately $42,857 per condo unit for just 14 units. This raised questions about the efficiency of the investment, especially when compared to other projects like Northpointe, which could potentially provide 160 units for a similar total expenditure. The discussion underscored the importance of maximizing taxpayer dollars while addressing the community's workforce housing needs.

The committee acknowledged the town's strategic plan, adopted in 2022, which emphasizes the importance of workforce housing. However, members expressed uncertainty about the availability of funds for the upcoming fiscal year, particularly as they aim to avoid increasing the millage rate. The current budget allocates $4 million for housing, with specific amounts earmarked for various projects, including Northpointe and the Bryant Road initiative.

While some committee members recognized the value of the CCDC's efforts in acquiring 14 units, there was a consensus that the current request for funding was too high. Suggestions were made to consider a lower amount or to explore alternative funding sources, including the town's ATAX funds, which have been designated for housing initiatives.

The meeting concluded with a commitment to further evaluate the funding structure and explore how to best support agencies like CCDC in their housing efforts. As the town navigates these financial decisions, the focus remains on ensuring that investments in workforce housing effectively meet the needs of Hilton Head Island residents.