‘A mixed bag’: Some have left Hilton Head’s Chimney Cove, others still looking to relocate

After facing eviction in August, and with uncertainty about the ownership of Chimney Cove still looming, dozens of residents have begun inquiring about relocating.

Sandy Gillis, executive director of the DeepWell Project — a nonprofit that has raised about $50,000 to help Chimney Cove residents relocate — said 32 households are in contact with the group and interested in moving, and eight already have left.

Chimney Cove, one of the few affordable housing options on the island, has 52 units, Gillis said. About 300 mostly Hispanic people with little or no English-speaking skills lived there before the eviction attempt.

Although the sudden eviction notices later were rescinded by Chimney Cove’s management, urgency to relocate remains. Some Spanish-speaking residents had said ownership exploited many by asking them to sign new, month-to-month leases written in English without explaining the document fully.

Residents who’ve now signed month-to-month agreements, or with full leases that will expire near the end of the year, are unsure when a buyer for the property might be found, whether a new buyer would keep Chimney Cove affordable, or whether it could be redeveloped.

Sandy Johal, who owns the property with her husband, Sam, previously told The Island Packet ownership was “working out the details” and another update would come. She did not respond to follow ups seeking an update.

Beaufort County records show the property is still owned by California Chimney Cove, LLC, the same group that issued the eviction notices.

Money available to help families relocate

Eight families have already moved, Gillis said.

Four households were able to find new homes on the island, including three apartment rentals. The remaining family purchased a mobile home and found a landlord on Hilton Head to rent space.

Two households moved off-island to Bluffton and Okatie, and two moved out of the Lowcountry, Gillis said.

So far, only about $3,000 to $4,000 of the emergency fund has been needed to help families relocate. DeepWell has helped cover costs like first month rent, security deposits, or remaining rent at Chimney Cove for families who’ve secured new homes but can’t move yet.

“There’s plenty more money sitting there to help families with their relocation from very generous donations from the community,” Gillis said.

In many cases, the families have been able to cover most costs on their own, highlighting that the issue isn’t willingness to work, but places to live.

“That’s the sad part about this. It’s not that these people are poor and have no place to go,” Gillis said. “They’re working, they have pretty good incomes, it’s just finding a place to go that has been the challenge.”

Contributions to help Chimney Cove’s residents surged immediately after word of the emergency spread, and not just to DeepWell.

The Rev. June Wilkins of Christ Lutheran Church, located next to Chimney Cove, said members of her congregation and the broader island community donated $10,000 to help Chimney Cove residents.

“There was just a great response of generosity from the whole island, everybody who was concerned and wanted to do something,” Wilkins said, “and it’s still waiting there, waiting to be used for when and if (the sale of Chimney Cove) comes.”

Donations made to the church’s fund are transferred to DeepWell for use, Wilkins said.

Families that have already found homes are successes worth celebrating, Gillis said.

“The sad thing is that still leaves a really big number that is actively looking for a place, trying to stay on Hilton Head, and not having any luck finding anything,” Gillis said. “It’s definitely a mixed bag.”

Members of the remaining households all told DeepWell they’d prefer to stay on the island.

The future of island workforce housing

Chimney Cove marked a turning point for Head’s leaders in the quest for more workforce housing. Throughout the process, several Town Council members bemoaned the fact Hilton Head has discussed the issue for years, but rarely made tangible commitments to solve it.

Last year, some town leaders expressed doubt Hilton Head should participate in a regional housing fund. The town is now an official member and second-highest financial contributor in the Beaufort-Jasper county housing trust, trailing only Beaufort County in yearly commitment.

Hilton Head pledged $156,815 to the fund’s first-year budget, which can be used to build affordable and workforce housing projects on Hilton Head or in other municipalities across Beaufort and Jasper counties. The funds were pulled from the town’s American Rescue Plan Act dollars and will be used to buy land or provide incentives to developers.

Town staff also moved quickly to craft, introduce and approve an affordable housing framework that includes specific first steps and long-term commitments to make more homes available to working islanders. Adopted just over two months after the Chimney Cove incident, Ward 3 Councilman David Ames called it a “Herculean effort” and “a marathon at a sprint’s pace.”

The effort to partner with a private developer for affordable housing projects was already underway before Chimney Cove. The crisis has led to more discussion and optimism from town representatives that public-private partnerships, should the Northpointe project be successful, may be the best method to provide town-supported housing.

Town Manager Marc Orlando said a partner for the Northpointe construction should be finalized in the coming weeks.

Hilton Head also is looking to leverage state-level policies to address housing.

On Tuesday, the Town Council passed a resolution requesting the state delegation increase the limit of yearly state housing tax credits to $40 million from $20 million. In the same action, the town requested that accommodations and hospitality tax dollars be permitted as options to fund workforce housing.