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Hilton Head council approves zoning changes to allow workforce housing at hospital site

Town Council of Hilton Head Island · February 11, 2026
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Summary

The Hilton Head Island Town Council approved amendments to the land-management ordinance and a zoning‑map change to allow residential workforce housing within a medical zoning district and to permit residential uses in the hospital master plan overlay; council and staff said development‑plan review and Planning Commission hearings will follow.

The Hilton Head Island Town Council on Feb. 10 approved two measures that clear the way for workforce housing on property tied to the Palmetto Headlands/Hilton Head Hospital master plan.

On a unanimous 7‑0 voice vote, council adopted amendments to Title 16 of the municipal code to permit residential workforce housing within a medical zoning district and approved an accompanying zoning‑map amendment to allow commercial and residential uses in portions of the hospital master-plan overlay. The measures were second readings and were adopted following a brief council discussion.

Planning staff and the town manager said the next step is development‑plan review. Planning staff member Zach Gordon said the project will move into the development‑plan review process and noted a recent meeting with hospital representatives “went very well.” Town Manager Orlando told council he expects plan approvals and permitting to be wrapped up by June, with demolition and construction to follow once development approvals are secured.

Councilmembers who asked questions said they wanted the public to understand the timing and sequence: demolition permits, development‑plan review and building permits remain required, and the Planning Commission will provide public review of major development plans before final approvals. A council member seeking public notice was told the town has been coordinating with neighboring property owners and stakeholders, including the POA for Hilton Head Plantation.

The approvals remove a zoning barrier for workforce housing on the identified parcels but do not themselves authorize demolition or construction; those actions will proceed only after the usual plan‑review and permitting steps.

The council did not record any public speakers on these items at the meeting. The town manager and planning staff said they would provide advance notice to nearby communities when demolition is scheduled and that an ombudsman will be available to assist the applicant during construction.