Habitat presentation prompts committee debate over $500,000 town subsidy and unit density

Brenda Dooley of Habitat for Humanity told the Hilton Head Island Housing Action Committee on Nov. 19 that a recent town-supported land purchase will allow Habitat to build five single-family homes on roughly 1½ acres on Hilton Head Island.

The presentation outlined Habitat’s homebuyer model — volunteer “sweat equity,” income-based first mortgages set to limit monthly payments to about 30% of income, and a second declining forgivable mortgage — and noted the affiliate merger that now covers Beaufort and Jasper counties. Dooley said construction costs per house are currently roughly $130,000 to $150,000, not including land, and that the parcel acquired with $500,000 in town funding will accommodate five homes under the present design: “We will be building 5 single family homes there,” she said.

Committee members pushed back on unit yield and subsidy efficiency. One member questioned why an acre-and-a-half produced only five units and urged consideration of townhouse or duplex designs to increase density. “We need to get more density in this thing to make use of it,” a member said, arguing the town should get greater “bang for the buck.”

Dooley and others said several nonfinancial factors constrained the design. She said site conditions, subdivision thresholds and the costs of converting a project to a major subdivision all affect feasibility. Town staff described zoning and variance procedures that can lengthen the timeline and raise engineering and roadway costs.

The committee debated a motion from one member recommending the town consider covering Habitat’s funding gap between current land costs and the town’s prior contribution and to expedite subdivision approvals to maximize the property’s use. Planning director Missy Lueck clarified that the parcel is zoned RM-4 (four dwelling units per acre) and explained the variance and public-notice processes that any change would require. Members said they wanted to see plot and design alternatives from Habitat before asking the town to provide additional funding or pursue procedural waivers.

Given those outstanding questions, the committee voted to table the funding-and-expedite recommendation to allow Habitat and staff time to return with more detailed plot designs and cost comparisons. The chair set the next committee meeting for Dec. 9, at which members expect additional information.

The committee also asked Habitat to return with more detail about smaller, innovative housing types Dooley discussed — including so-called container homes, which have been approved for habitation in some neighboring counties but are not currently approved in Beaufort County. Dooley said Habitat is open to exploring alternative building types if they can be made to work within regulatory and program constraints.

Procedural note: the committee’s action to table the recommendation does not itself change town approvals or funding; it pauses a committee-level recommendation pending more information.