The Bermuda Housing Corporation has formally appealed a decision to refuse a proposed change to use of the Bermudiana Beach property.

It had sought approval for a change of use of the 94 units on the Warwick property, built as affordable housing and adapted for tourism, back to residential use.

While the Development Applications Board struck down the application citing the density of units and number of parking spaces, the BHC launched an appeal against the decision.

In a letter dated June 12, the BHC said: “The existing buildings were originally residential in nature before subsequently being converted to tourism accommodations.

“The proposal therefore represents the repurposing and adaptive reuse of an existing developed site back to residential use rather than the creation of a new greenfield residential development.

“The proposal directly addresses Bermuda’s housing needs through the reactivation of existing residential stock while preserving the significant infrastructure and amenities already established on the site.”

The appeal letter stated that because of the physical characteristics of the site, it was not possible to provide additional private outdoor space for all of the units, but argued that the proposal would offer an “exceptional level of residential amenity and quality of life”.

The letter noted residents would have direct access to a beach, swimming pool, clubhouse facilities, restaurant facilities and a gym and fitness centre in addition to landscaped communal spaces.

The letter added: “Collectively, these amenities create a high-quality residential environment that is uncommon within the local housing market and materially enhances the daily living experience of residents.

“The applicant respectfully submits that the overall residential amenity afforded by these facilities substantially offsets any deficiency in private outdoor space and provides a level of amenity that exceeds that typically associated with conventional residential developments.”

The letter also states that the site had been optimised to accommodate the maximum number of parking spaces possible without compromising fire lane access, emergency circulation or the overall residential environment.

It argued that the site also fit policies to allow reduced parking if there was “adequate public transportation and pedestrian facilities” in the vicinity of the development.

The letter added: “The site directly fronts South Road and benefits from public bus stops immediately adjacent to the property in both easterly and westerly directions, providing convenient access to Hamilton and Somerset.

“Furthermore, the applicant has identified certain units as cycle-only units, thereby restricting those units from private vehicle parking and encouraging more sustainable transportation options.”

The appeal letter said that the development was a response to housing needs on the island, stating that the project would contribute meaningfully to Bermuda’s housing strategy.

The document added: “The adaptive reuse of an existing development represents a sustainable planning outcome by preserving existing infrastructure, minimising environmental impacts associated with new construction and bringing underutilised assets back into productive residential use.”

The units on the site were originally developed for the Grand Atlantic affordable housing project but the plans were scrapped after only two of the 78 units built were sold.

It was later announced that the project would be converted into a boutique condominium hotel and rebranded as the Bermudiana Beach Resort, with 94 condo units for sale and 110 hotel keys.

In late 2024, the Government jettisoned the project after an assessment found that the hotel model was no longer financially viable and the units would be put on the rental market once construction was completed.

Zane DeSilva, the Minister of Housing and Municipalities, formally opened Bermudiana Beach Residences in April 2025. He said this week that 94 per cent of the apartments were occupied.

The application to change the use of the site was submitted in March, but in a report prepared for the DAB, technical officers said the 66 car parking spaces on the site were inadequate.

The plans were formally turned down by the DAB on June 3, however, a spokesman for the Ministry of Housing and Municipalities said the status of those who are already residing at the facility would not be affected.