the following is a guest article written by Community Housing & Resources Board President Erika Steiner
As President of CHR, I have closely followed the discussions surrounding our proposed Riverview II affordable housing development and wanted to take the opportunity to address several of the questions that have arisen.
Supporting workforce housing on an island with strict ecological boundaries requires balance, accountability, support, and accurate information flow. CHR’s mission is not about changing what makes Sanibel special; it is about supporting and enhancing it. We all want to ensure that the people who teach our children, protect our homes, and support our local businesses can better afford to live in the community they help to keep running.
We have heard your concerns, noted your questions, and we recognize that there are some areas of this initiative that require additional detail and clarity. With this letter, I want to respond directly with facts and transparency to the concerns we have heard.
I. Funding, Taxes & Financial Integrity
1. Taxpayer Impact
• What We’ve Heard: Sanibel taxpayers are paying for the Riverview II development.
• What We Know: No municipal or local tax dollars are being used for this project. Riverview II will be fully funded through a federal Community Development Block Grant – Disaster Recovery (CDBG-DR) grant from Hurricane Ian, private bank financing, and CHR’s reserves.
2. City of Sanibel Bailout & Bankruptcy
• What We’ve Heard: The City of Sanibel has had to bail out CHR, and the organization was close to filing bankruptcy.
• What We Know: CHR has never filed for, nor been anywhere near, bankruptcy. At a recent City Council meeting, Council Member and former CHR Board President Richard Johnson clarified that while CHR experienced lean periods, as all businesses do, the organization successfully navigated them and is now thriving. In addition, the “debt for land” agreement between the City and CHR was structured to benefit the City by alleviating debt from its books. Through this arrangement, the City acquired ownership of the land beneath Casa Mariposa and Woodhaven, making it a mutually beneficial accommodation.
3. Grant Allocation & Homeowners
• What We’ve Heard: CHR diverted grant funding away from individual homeowners rebuilding after disasters.
• What We Know: The grant secured by CHR came from a designated funding pool restricted exclusively to multi-family affordable housing and public facility development. It does not compete with individual single-family home rebuilding and recovery.
4. Property Acquisition Cost
• What We’ve Heard: CHR overpaid for the former Fish House parcel on Periwinkle Way.
• What We Know: The land was purchased for $3.5 million based on an independent, professional appraisal. CHR plans to sell a commercial strip along Periwinkle that was part of the acquisition for $1.5 million, which was also independently appraised, reducing the net cost of land for construction to $2.0 million.
5. Project Budget & Cost Management
• What We’ve Heard: The projected cost of Riverview II has escalated significantly.
• What We Know: The project budget was calculated prior to the grant application and has remained unchanged. Through proactive scope management and value engineering, CHR has controlled costs without compromising safety, structural integrity, or coastal resilience.
6. Debt Structure
• What We’ve Heard: CHR should operate without debt.
• What We Know: Most affordable housing development nationwide uses debt as part of an overall finance package, although specific structure differs from project to project. According to Affordable Housing Finance and the Florida Housing Coalition, multi-family developers typically structure bank debt to finance anywhere between 30% and 80% of construction costs, using soft funds or equity for the remainder. More importantly, CHR has responsibly managed debt throughout its history and maintains an unblemished record with zero delinquent loan payments.
7. Loss of Commercial Property Taxes & Much Needed Commercial Space
• What we’ve heard: Riverview II will take up valuable commercial space.
• What we know: CHR plans to sell the commercial parcel in front of Riverview II, returning that portion of the property to the tax rolls and creating an opportunity for a much-needed island business.
II. Community Need & City Vision
8. The Need for Island Workforce Housing
• What We’ve Heard: Sanibel does not need affordable housing.
• What We Know: When Sanibel incorporated over 50 years ago, establishing a Below Market Rate Housing (BMRH) program was a core foundational objective. Workforce housing ensures that local businesses, schools, and emergency services have access to a stable, qualified, and engaged workforce while preserving the diverse, inclusive character of our island community. CHR has surveyed and spoken with employers to understand better their workforce needs better. More than 89% of these businesses reported that commuting challenges make hiring extremely difficult.
9. Housing Off-Island vs. On-Island
• What We’ve Heard: Sanibel workforce members can live in off-island redevelopments, such as the proposed project at the former Sanibel Outlets.
• What We Know: While off-island developments such as Sanibel Outlets could add regional workforce housing, Sanibel workers would still face causeway traffic, tolls, and competition for housing from employees at nearby HealthPark, Shell Point, and Fort Myers Beach businesses, which together account for more than 6,100 employees and jobs. As stated in the Sanibel Plan:
“Providing for affordable housing off-island would mean that some of the people who work on Sanibel could not live here… The effect of having an off-island housing program would be to establish a two-tier system—one for those who can afford to live here and another for those who cannot. Such a system does not meet the standards of the Sanibel community.”
10. Housing Goals & BMRH Targets
• What We’ve Heard: CHR is pursuing grants simply to meet a 3% housing quota.
• What We Know: CHR’s initiatives and affordable housing targets are not driven by quotas, but rather by real-world Sanibel demand, reflected in ongoing housing inquiries and waitlists. Our goals are consistent with Sanibel Plan’s Housing Element: Objective 3, which calls for increasing housing units for low-to-moderate income individuals and essential workforce personnel based on demonstrated need.
III. Site Selection, Design & Environmental Impact
11. Site Selection Strategy
• What We’ve Heard: CHR did not need to build on Periwinkle Way.
• What We Know: Suitable land on Sanibel is severely limited due to lot sizes, flood zones, and environmental sensitivities. Combining the vacant Fish House site with CHR’s adjacent Harkey House property maximizes efficiency, utilizes existing infrastructure, and optimizes access for residents, emergency service vehicles, and utility services.
12. Visual Impact & Aesthetic Preservation
• What We’ve Heard: Riverview II will negatively affect the visual corridor along Periwinkle Way.
• What We Know: The layout is specifically designed to set back residential structures behind natural vegetation and commercial street frontage. Dense, multi-layered native landscape buffers along Periwinkle Way will ensure the development integrates seamlessly into Sanibel’s natural sanctuary corridor.
13. Neighborhood Buffers & Lighting
• What We’ve Heard: The development will obstruct views and create light spillover for adjacent communities like Beachview and Kona Kai.
• What We Know: Robust native vegetation buffers are planned along all property boundaries. In response to recent feedback from our neighbors regarding excessive lighting, fixture wattage and lighting placements are being adjusted and redesigned where necessary to prevent unwanted light spillover toward neighboring communities.
14. Riverview II & Traffic Concerns
• What we’ve heard: Riverview II will cause more traffic congestion for locals.
• What we know: A professional traffic study estimates 144 fewer daily vehicle trips than the former restaurant on that site generated. Living closer to work reduces causeway commutes, and CHR’s current data indicate that on-island workers are less likely to use a car and prefer alternative ways to travel around the island.
IV. Governance, Housing Mix & Regulations
15. Building Configuration & Demand
• What We’ve Heard: CHR is building too many one-bedroom apartments.
• What We Know: The overwhelming majority of housing applications CHR receives are for single workers and small households. Historically, a lack of one-bedroom units forced single occupants into multi-bedroom apartments. Adding one-bedroom inventory corrects this imbalance, optimizes unit distribution, and frees up larger units for local families.
16. Workforce Priority & Fair Housing
• What We’ve Heard: The development will bring in non-island residents.
• What We Know: CHR housing prioritizes individuals and families who work on our island and support our local economy. Because most Sanibel workers must currently commute from off-island, providing local housing reduces causeway traffic and commuting delays while keeping essential workers close by. Both CHR and the City are committed to an affordable housing program that directly supports local employees while adhering fully to federal, state, and local housing laws.
17. Governance & Financial Transparency
• What We’ve Heard: Private individuals will profit financially from CHR’s construction projects.
• What We Know: CHR is a registered 501(c)(3) non-profit organization with no shareholders. It is governed by a volunteer Board of Directors who receive no financial compensation or personal monetary benefit from any CHR operations.
As we move forward, CHR remains fully committed to transparent communication, environmental stewardship, and mutual respect. We invite you to stay engaged, ask questions, and partner with us as we build a sustainable, resilient future for us all.
Erika Steiner
President
Community Housing & Resources, Inc.
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