News Release

Town Council Approves Memorandums of Understanding for Workforce Housing Initiatives - Correction

February 26, 2024

The Hilton Head Island Town Council recently took action in support of its workforce housing initiatives by approving Memorandums of Understanding (MOU) with two local organizations. A previous release stating that specific funding amounts had been approved as part of these MOUs was in error.

The approval of these MOUs is a first step toward the potential award of funding through the Town’s affiliated agency funding process. Hilton Head Regional Habitat for Humanity is seeking $500,000 and the Coastal Community Development Corporation is seeking $600,000.

In a 6-to-1 vote, the Town Council approved a resolution authorizing the Town to enter into a memorandum of understanding with the Hilton Head Regional Habitat for Humanity to bolster its workforce housing efforts. Habitat is actively pursuing land acquisitions in Beaufort and Jasper Counties and has recently completed 35 homes on Hilton Head Island for families working in various sectors, including healthcare and hospitality.

Additionally, with a 5-2 vote, the Town Council endorsed a resolution facilitating a memorandum of understanding with the Coastal Community Development Corporation to further support its workforce housing endeavors. The corporation’s goal is to preserve local workforce housing by purchasing existing properties in the region and renting them to local working residents with rental rates that are determined by household income.

Funding requests from both of these organizations will be considered under the criteria established for affiliated agency funding as part of an amendment to the Town's currently adopted budget. Affiliated agencies are integral partners contracted by the Town to deliver services that benefit the public on the Town's behalf. The funding review process will be conducted with a commitment to transparency and accountability, and be guided by criteria to assess the public purpose served by each project.

Should funding be approved for these two organizations, it will be derived from the state accommodations tax levied on visitors' overnight stays at hotels and other overnight lodgings. The adopted MOU’s outline the responsibilities of both organizations, including how the funding will be utilized, how financial records will be kept, and how performance data will be required as part of an annual report so that the Town can monitor their performance as they implement their respective programs.

"One of the strategies identified within our Comprehensive Plan is to support programs that are aimed at increasing workforce housing availability. Habitat certainly has a strong track record of doing this through home ownership. Coastal Community Development Corporation has a newer model of offering rental opportunities with the possibility of converting to home ownership. We look forward to working with both organizations," said Hilton Head Island Mayor Alan Perry.

For more information, contact Hilton Head Island Assistant Town Manager Josh Gruber, JoshG@hiltonheadislandsc.gov or 843-341-4634.