CHR Riverview II Sanibel: 39-Unit Workforce Housing Proposal on Periwinkle Way
Last Updated: August 27, 2026
CHR Riverview II Sanibel: 39-Unit Workforce Housing Proposal on Periwinkle Way
Last Updated: August 27, 2026
Community Housing & Resources' proposed Riverview II development at 1523 Periwinkle Way continues to be an important part of Sanibel's discussion about workforce housing, density and redevelopment.
The project calls for 39 one-bedroom below-market-rate housing units on the former Sanibel Fish House property. Sanibel City Council approved the project's increased density and related variances on March 31, 2026, with conditions.
While those approvals were a significant step forward, additional permitting, funding coordination, design and construction steps remain before Riverview II becomes a completed housing community.
Quick Facts: CHR Riverview II Sanibel
Location: 1523 Periwinkle Way, former Sanibel Fish House site
Units: 39 one-bedroom apartments
Building: Three residential stories elevated over parking
Height: Approximately 45 feet
Funding: Approximately $9.75 million in federal CDBG-DR funding
City Council Approval: March 31, 2026
Approval Vote: 4-1, with conditions
Current Status: Approved with conditions, with additional permitting and development steps remaining
What Is Riverview II?
Riverview II is a proposed 39-unit below-market-rate housing development by Community Housing & Resources, commonly known as CHR.
The property is located at 1523 Periwinkle Way, the former site of the Sanibel Fish House.
Plans call for 39 one-bedroom apartments in a multifamily building with three residential levels elevated above parking. The project is intended to add below-market-rate housing on Sanibel at a time when the availability and cost of housing for the island's workforce continue to be community concerns.
Why Riverview II Required Special Approval
Sanibel has historically maintained strict residential density and development standards. Riverview II could not be constructed as proposed under the property's standard development limitations.
The project therefore required several City approvals, including increased residential density for below-market-rate housing and variances involving the number and arrangement of dwelling units, vegetation buffers, site planning, driveways and other development standards.
Sanibel's Land Development Code provides a process through which qualifying below-market-rate housing projects can request increased density. These requests are subject to public review rather than being granted automatically.
Riverview II has attracted particular attention because 39 residences would be concentrated on a prominent Periwinkle Way property rather than distributed among smaller residential buildings.
How Riverview II Differs From Existing CHR Housing
CHR has provided below-market-rate housing on Sanibel for decades. Much of its existing housing is located in smaller developments distributed throughout the island.
Riverview II represents a different approach.
Instead of duplexes and smaller residential buildings spread among several locations, the proposal places 39 apartments in one multifamily development directly on Periwinkle Way.
That difference in scale and location has been a significant part of the public discussion surrounding the project.
Sanibel's Below-Market-Rate Housing Goal
Sanibel has long recognized the importance of providing housing opportunities for people who work in and serve the island community.
The Sanibel Plan includes a goal for below-market-rate housing to represent approximately 3% of the island's housing inventory.
Reaching that goal has been challenging. Sanibel has limited developable land, high property values and development regulations designed to protect the island's low-density character and environmentally sensitive lands.
Riverview II would add 39 units toward the island's below-market-rate housing inventory in a single project.
March 31, 2026 City Council Approval
Sanibel City Council considered Riverview II at a second reading and public hearing on March 31, 2026.
Council approved the increased-density conditional use and related variances in a 4-1 vote, with amendments and conditions.
Among the conditions associated with the approvals were requirements addressing the below-market-rate housing program, conservation of lands near the Sanibel River, landscaping, bicycle parking, connectivity, trash and recycling facilities, signage and future commercial development on the property.
The approval allowed the project to continue moving forward, but it did not eliminate the additional permitting, funding, engineering and construction requirements necessary to develop the property.
The Sanibel Employment Requirement
One important issue that continued to receive attention after the March approval involves who may occupy the Riverview II apartments.
During the approval process, City Council added a condition related to employment on Sanibel.
The requirement became the subject of additional discussion in July 2026, including whether that condition should remain in place or be modified.
This is an important distinction in the broader workforce housing discussion. There is general interest in increasing the supply of attainable housing, but there is also a question of whether housing created through Sanibel's special below-market-rate density provisions should primarily serve people working on the island.
Any future change to that condition would require additional City action.
The Role of Federal Disaster Recovery Funding
Riverview II is tied to approximately $9.75 million in Community Development Block Grant Disaster Recovery funding associated with Hurricane Ian recovery.
Federal funding is an important part of the project's financial structure and also affects its timeline.
Projects receiving this type of funding must satisfy applicable federal and local requirements. Coordination of those requirements remains part of the process as Riverview II moves toward permitting and eventual construction.
Timeline
Early 2026
CHR acquired the former Sanibel Fish House property at 1523 Periwinkle Way for the Riverview II project.
February 24, 2026
The Sanibel Planning Commission considered and approved the increased-density component of the project.
March 17, 2026
Sanibel City Council considered the proposal at first reading and moved it forward to a second reading and public hearing.
March 31, 2026
City Council approved the increased-density conditional use and associated variances in a 4-1 vote with amendments and conditions.
July 2026
City Council discussed the condition concerning employment on Sanibel for residents of the development. The discussion raised the question of whether that requirement should remain or potentially be modified.
August 2026
Riverview II remains an approved project with additional development, permitting, funding and construction steps ahead.
What Happens Next?
City Council's approval was an important milestone, but it was not the final step before construction.
The project must continue through the applicable development process, including final design and engineering, permitting, coordination of federal funding requirements and construction planning.
Any future commercial development associated with the property would require separate review and approval.
The employment requirement attached to the housing also remains an issue to watch if City Council considers modifying that condition in the future.
Does Riverview II Set a Precedent for Future Development?
This is one of the larger questions surrounding the project.
Riverview II does not automatically change the allowable density of other residential or commercial properties on Sanibel. The increased density was approved through provisions specifically available for qualifying below-market-rate housing.
Future projects requesting similar treatment would still have to go through the applicable City review and approval process.
However, Riverview II does demonstrate how Sanibel's existing below-market-rate housing provisions can be used to accommodate substantially greater residential density than would otherwise be permitted on a property.
For that reason, residents and property owners may continue watching how the project develops and whether similar proposals are submitted in the future.
Riverview II and Sanibel Real Estate
It is too early to determine whether Riverview II will have a measurable effect on nearby property values.
Real estate values on Sanibel are influenced by many factors, including location, property condition, water access, views, insurance costs, inventory, buyer demand and broader market conditions.
The more immediate significance of Riverview II is its role in the ongoing discussion about how Sanibel balances several priorities: providing housing for people who work on the island, supporting local businesses and services, protecting environmentally sensitive land and maintaining the development standards that have shaped Sanibel for decades.
Frequently Asked Questions
Where is Riverview II?
Riverview II is planned for 1523 Periwinkle Way, the former Sanibel Fish House property.
How many apartments are planned?
The project calls for 39 one-bedroom below-market-rate apartments.
Has Riverview II been approved?
Sanibel City Council approved the increased density and associated variances on March 31, 2026, with conditions. Additional permitting, funding, engineering and construction steps remain.
Is Riverview II already under construction?
The City approvals allow the project to proceed through the next stages of development. Approval of the density and variances should not be confused with completion of all permits necessary for construction.
Who will be eligible to live at Riverview II?
The apartments are intended to be part of Sanibel's Below Market Rate Housing program. City Council also attached an employment-related condition to the project. That condition was discussed again in July 2026 and could be the subject of future City consideration.
Why does Riverview II have greater density than normally allowed?
Sanibel's regulations provide a process for increased density for qualifying below-market-rate housing. Riverview II received approval through that process after Planning Commission and City Council review.
Does this mean other Sanibel properties can build at the same density?
No. Riverview II's approval does not automatically increase density elsewhere on Sanibel. Another qualifying project seeking increased density would have to follow the applicable City review and approval process.
Will Riverview II affect nearby property values?
There is not enough information to establish a direct effect on surrounding property values. Property values are influenced by many factors, and any impact from a development such as Riverview II would likely depend on the completed project, surrounding properties and overall market conditions.
Bottom Line
Riverview II is now beyond the initial proposal stage. Sanibel City Council approved the increased density and related variances in March 2026, allowing the 39-unit development to continue through the development process.
The project also raises broader questions that are likely to remain part of Sanibel's planning discussions.
How much below-market-rate housing does Sanibel need? Who should qualify for housing created through special density provisions? How should larger multifamily buildings fit into the island's traditional development pattern? And how can Sanibel provide housing for its workforce while continuing to protect the character and environmental priorities established in the Sanibel Plan?
Riverview II will provide one real-world example of how the City approaches those questions as Sanibel continues its recovery and redevelopment following Hurricane Ian.CHR Riverview II: 39-Unit Sanibel Workforce Housing Proposal on Periwinkle Way
Original April 8, 2026 Article: Background on the Riverview II Proposal
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.