Hilton Head Island Finalizes Northpoint Workforce Housing Partner

Hilton Head Island and OneStreet Residential Join Hands

In the pursuit of establishing affordable workforce housing on the island, Hilton Head Island has signed an agreement with Atlanta-based company OneStreet Residential. The partnership takes the ongoing Northpoint workforce housing project a step closer towards realization. The project will transform an 11-acre span of town-owned land near William Hilton Parkway and Jarvis Creek into an affordable housing neighborhood, providing shelter to the very workers that keep the island’s wheels turning.

Need for Workforce Housing

As per the estimates of town officials, over 14,000 workers commute daily to Hilton Head due to the extensive housing costs on the island. A substantial chunk of the commuters come from a 50-mile radius or more. Such a long commute coupled with the promising employment opportunities in neighboring towns has surfaced as a significant challenge to the island’s workforce. This strain is particularly evident in the hospitality and healthcare sectors, among others.

Studies reveal the alarming disparity in the island’s income groups. It appears the island’s fastest-growing income groups are less than $25,000 and above $150,000. This trend seems to systematically disappear the middle-income households from the community, thereby inflating prices and rents. This economic blow has compounded the difficulties for many, making housing even more unattainable. Estimates suggest that the need of the hour is supplying at least 200 additional housing units yearly for the next decade to bring workforce housing and affordability under control.

Decoding Northpoint Housing Development

The Northpoint neighborhood is envisioned to be the solution to the housing crisis and will be entirely composed of workforce housing. However, to be eligible for residency, one should be an active worker on Hilton Head Island. The housing groups are expected to accommodate households racking an income between 60 and 80 percent of the Area Median Income (AMI). This would include teachers, law enforcement officers, hospitality staff, health care providers, and so on.

While the project doesn’t promise to provide an overarching solution to the trickling workforce, it definitely sets a positive precedent. According to Mayor Alan Perry, initiatives like these have potential to breathe life into the workforce and public-private partnerships are crucial in realizing these opportunities.

Detailed Overview of the Northpoint Project

The Northpoint project aims to develop a vibrant neighborhood teeming with activities, programs, events, and amenities for its residents. Hilton Head Island Town Council credited OneStreet Residential as the town’s development partner during a recent meeting. As per this understanding, the town will contribute a 65-year ground lease, $1 million to assist eligible project costs using the American Rescue Plan Fund, affordability covenants as well as zoning entitlements. On the other hand, OneStreet Residential has undertaken the responsibility to oversee design, permitting, financing, project management, construction, lease-up, long-term programming, and property management.

As proposed in the preliminary plans, the Northpoint neighborhood will house a pool and outdoor communal spaces with additional amenities. Open spaces with picturesque views of Jarvis Creek, a neighborhood park armed with walking trails and fitness stations, and a community garden are all included in the neighborhood’s vision. To ensure its residents stay connected with the world, the region will also house an on-site property management and a multipurpose community center equipped with high-speed internet.

The town and OneStreet Residential will collaborate over the next few months to refine the plans for the site. Construction is expected to commence during the summer of 2025 and is estimated to last for 18 months. If all goes as planned, the first units should be up for rent towards 2026’s end.