CHR Riverview II Sanibel: 39-Unit Workforce Housing Proposal on Periwinkle Way
Last Updated: April 8, 2026
CHR Riverview II: 39-Unit Sanibel Workforce Housing Proposal on Periwinkle Way
Last Update: April 8, 2026:
Quick Facts: CHR Riverview II Sanibel
Location: 1523 Periwinkle Way (former Fish House site)
Units Proposed: 39
Density Increase: From ~9 units to 39 (approx. 333% increase)
Building Height: ~45 feet (three stories over parking)
Approval Status: Approved with conditions, additional steps required
Funding: ~$9.75M federal CDBG-DR funding
Key Issue: Density exception for workforce housing
This page is regularly updated to reflect the latest Riverview II developments, approvals, and next steps. The CHR Riverview II project is a proposed 39-unit below-market-rate housing development on Periwinkle Way in Sanibel. While it has advanced through City Council approvals, the project must still complete permitting, funding coordination, and final regulatory steps before construction can begin.
For many residents, buyers, and sellers, the key question isn’t just what this project is—but whether it changes the future of Sanibel workforce housing and development patterns. The CHR Riverview II project is now one of the most discussed Sanibel workforce housing developments along Periwinkle Way.
This page is regularly updated to reflect the latest Riverview II developments, approvals, and next steps.
The proposed Riverview II development from Community Housing & Resources (CHR) has become one of the most closely watched real estate and planning stories on Sanibel Island in 2026.
Planned for the former Sanibel Fish House site at 1523 Periwinkle Way, the project calls for 39 below-market-rate housing units in a three-story structure elevated over parking. It represents a notable shift from Sanibel’s traditional development pattern—and a key moment in how the island approaches workforce housing moving forward.
Unlike typical news coverage, this article breaks down not just what happened—but what it means for Sanibel real estate, housing supply, and future development decisions.
For buyers and property owners, this is less about one project and more about what it signals for the future of Sanibel homes for sale and condos for sale.
What Is Riverview II?
Riverview II is a proposed 39-unit workforce housing development consisting entirely of one-bedroom apartments (approximately 570–600 sq ft), designed for individuals who live or work on Sanibel and Captiva.
The building is planned as a three-story structure above parking, with design elements intended to meet modern resiliency standards.
To move forward, the project required:
Increased density beyond standard zoning
Variances for height, setbacks, and design
Conditional use approvals
This combination is what has brought the project into focus.
Project Details at a Glance
Location: 1523 Periwinkle Way (former Fish House site)
Proposed Units: 39
Previous Allowable Density: ~9 units
Proposed Density Increase: Up to ~333% higher than standard zoning
Building Height: Approximately 45 feet (three stories over parking)
Unit Type: One-bedroom workforce housing apartments
Funding: Potential $9.75 million in federal CDBG-DR funding
Approval Status: Advanced through City Council with conditions, pending next steps
Sanibel Workforce Housing: Why Riverview II Matters and This Project Stands Out
CHR has provided workforce housing on Sanibel for decades—but almost all existing communities follow a consistent pattern:
Low-density
Duplex-style or small multifamily
Distributed across residential neighborhoods
Limited visibility from main corridors
That pattern aligns closely with the broader structure of Sanibel neighborhoods historically helped workforce housing blend into the island’s character.
Riverview II differs in three clear ways:
39 units in a single location
A three-story structure rather than low-rise buildings
Direct frontage on Periwinkle Way
Photo credit: Courtesy of Community Housing & Resources (CHR) and Santiva Chronicle
Sanibel’s 3% Workforce Housing Goal
Sanibel’s Comprehensive Plan has long targeted 3% of the island’s housing inventory as below-market-rate housing.
Despite decades of discussion about Sanibel workforce housing, that benchmark has been difficult to reach due to:
Limited developable land
High property values
Strict density controls
Compared to nearby markets like Fort Myers real estate or Captiva Island properties, Sanibel operates under significantly tighter development constraints.
Riverview II is being positioned as a project that could help move the island closer to that long-standing goal.
Why CHR Housing Can Exceed Density Limits on Sanibel
Sanibel strictly limits residential density to preserve the island’s low-density character. In most cases, increases beyond zoning limits are not allowed.
However, below-market-rate housing (BMRH)—including projects developed by Community Housing & Resources (CHR)—is a defined exception.
Under Sanibel’s Comprehensive Plan and Land Development Code, qualifying workforce housing projects may receive:
Density bonuses
Conditional use approvals
Limited regulatory flexibility
This policy exists because, without increased density, workforce housing is typically not financially feasible on Sanibel due to high land costs and restricted supply.
As a result, CHR housing is effectively the only category of residential development where increased density is permitted, subject to public review and approval.
The Riverview II proposal brings this policy into focus, as it applies that long-standing exception at a larger and more visible scale than previous projects.
Existing CHR Housing on Sanibel
CHR’s current housing inventory is spread across multiple smaller communities, including Airport Way, Centre Place, Mahogany Way, Woodhaven, Casa Mariposa, and others. In total, CHR manages approximately 65+ rental units along with a smaller number of ownership units, primarily in low-density configurations designed to blend into surrounding neighborhoods.
See our full breakdown of below market rate housing on Sanibel for all CHR communities and inventory.
CHR’s current housing inventory is spread across multiple smaller communities, including Airport Way, Centre Place, Mahogany Way, Woodhaven, Casa Mariposa, and others.
In total, CHR manages:
Approximately 65+ rental units
A smaller number of ownership units
Primarily two-bedroom configurations
Mostly duplex or small multifamily layouts
This distribution is important context.
Riverview II represents a different model—more concentrated, more visible with Periwinkle Way development, and built at a different scale than what currently exists.
The Role of CDBG-DR Funding
The Riverview II workforce housing project is partially tied to federal disaster recovery funding administered through the U.S. Department of Housing and Urban Development following Hurricane Ian.
This funding:
Is time-sensitive
Requires compliance with specific guidelines
Influences project timelines
If not used within required parameters, funds may be reallocated—adding urgency to the process.
Key Takeaways
Riverview II is one of the largest proposed workforce housing developments on Sanibel
The project has advanced through key approvals but is not yet construction-ready
The proposal represents a shift in density, scale, and visibility compared to existing CHR housing
Future decisions on projects like this may influence long-term development patterns on the island
Timeline of Events
Early February 2026
CHR purchases the former Sanibel Fish House property on Periwinkle Way.
February 24, 2026
Sanibel Planning Commission approves the density component of the project.
March 17, 2026
City Council reviews the proposal at first reading and advances it forward.
March 23, 2026
Details of the project—including variances and conditions—are publicly outlined.
March 31, 2026
Sanibel City Council approved the Riverview II proposal in a 4–1 vote with conditions following a public hearing.
What Happens Next
Despite advancing through major approvals, the project still faces several key steps:
Final design and engineering adjustments
Permitting and regulatory approvals
Coordination and release of federal funding
Construction planning and scheduling
Additionally, any future commercial component tied to the site would require separate approvals.
In short, the project has advanced—but is not yet fully realized.
Real Estate Perspective
From a market standpoint, Riverview II introduces considerations rather than clear outcomes.
Sanibel workforce housing can support local businesses and services—an underlying factor in long-term market stability and Island housing supply. At the same time, consistency in Sanibel development patterns has historically been part of what attracts buyers to Sanibel Island.
For those comparing options across Southwest Florida—including Fort Myers, Cape Coral and Sanibel, the island continues to operate under a unique set of constraints.
As with most development, impacts tend to be localized rather than market-wide.
Frequently Asked Questions
What is CHR?
Community Housing & Resources is a nonprofit that provides below-market-rate housing for people who live or work on Sanibel and Captiva.
Where is Riverview II located?
At 1523 Periwinkle Way, the former Sanibel Fish House site.
How many units are proposed?
39 one-bedroom apartments.
Is the project fully approved?
It has advanced through major approvals but still requires permitting, funding coordination, and final steps before construction.
Why is it controversial?
The debate centers on density, scale, location, and whether the project sets a precedent for future development.
People Also Ask About CHR Riverview II Sanibel
Is the CHR Riverview II project fully approved?
No. The Riverview II project has advanced through key approvals, including City Council action, but it still must complete permitting, funding coordination, and final regulatory steps before construction can begin.
Why is the Riverview II project controversial?
The debate centers on density, building height, and location along Periwinkle Way. While many support workforce housing, some residents question whether the scale and design fit Sanibel’s traditional low-density character.
How many workforce housing units are currently on Sanibel?
Community Housing & Resources (CHR) currently manages approximately 65+ rental units across multiple Sanibel locations, along with a smaller number of ownership units. Most are smaller-scale, low-density developments.
What is below-market-rate housing (BMRH)?
Below-market-rate housing refers to housing priced below typical market levels and reserved for individuals who meet income and employment criteria, often tied to local workforce needs.
Will Riverview II affect Sanibel property values?
Real estate impacts are typically localized and influenced by multiple factors, including location, demand, and inventory. There is no single consensus on how a project like this affects overall Sanibel property values.
Why are all the units one-bedroom?
The project is designed to meet current workforce housing demand, which often shows higher need for smaller units. However, the unit mix has also been part of the public discussion.
What happens if the project does not move forward?
If the project does not meet funding or permitting requirements, it may be delayed, modified, or potentially re-evaluated depending on conditions tied to approvals and funding sources.
Bottom Line
Riverview II captures a broader reality facing Sanibel, the need for affordable housing for workers.
Workforce housing is needed. Land is limited. Development expectations are well established.
This project sits at the intersection of those forces—and what happens next will matter, not just for this site on Periwinkle Way, but for how future development is approached across Sanibel Island.
This is why terms like ‘Sanibel workforce housing density’ and ‘CHR density exception Sanibel' are often at the center of public discussion.