We spent a week at Apartments Milicic (Apartment 1) when the weather was glorious in May. The terrace was huge with fantastic views of the sea and several islands plus the comings and goings of all types of boats - from ferries to yachts. The terrace had sunbeds and a really useful awning. The apartment is in a well-maintained house set in a residential area. There's a supermarket within 5 minutes walk and a beach a few minutes below the apartment.
The owners were friendly and unobtrusive.
We really LIKED the walk into town as it was completely car-free along a path RIGHT BY the sea with great views all the way along. It was partly shaded which was useful in the hot sun. It was a great way to see Hvar Town for the first time - glowing in the evening sun.
The rooms were of a good size with a contemporary kitchen and an en-suite shower room to both bedrooms. Good for a party of two or four.
Thanks to the Milicic family for a great stay in lovely Hvar.

My family of 4 stayed in the bottom floor apartment in June for 5 nights. The view of the sea was obstructed, but we enjoyed our patio each night. The apartment was very clean and furnished nicely. There was not a microwave or oven in the kitchen, which was a bit inconvenient. We loved the quiet area the house was located in, and enjoyed our walks to town each day. We would stay here again, but try to have an upper apartment for the view.

I stayed in Apartment #2 (website: http://www.apartmentsmilicic.com/apartment2.htm) and traveled with my wife and another couple, and this place was great. Hvar was wonderful. Make sure to rent a boat and go island hoping. Only drawback to this place is that it's a little bit more of a walk from the water than I would have liked, but it was clean and the owners are nice. Also, the shower has no curtain, which doesn't seem to be uncharacteristic of many private residences. We stayed two days, and that was the only annoying thing.

We found Apartments Milicic here on Travelocity and went ahead and booked it because the one and only review sounded so good, plus the view of the sea from the deck looked amazing. And it was just as good in person.
We stayed on the top floor apt. for three nights and it was the perfect hideaway. This particular apt. had two bedrooms (would sleep 4 or 5 people) and was so perfectly equipt with everything we needed, plus it was spotlessly clean and quiet. The seaview from the nice private deck was lovely. This apt is about a 10-15 minute gorgeous walk along the water, to the center of town. It's about the same distance (though a bit closer in) than Podstine. And we did not want to pay the exorbitant prices at Podstine. This was such a great and relaxing alternative. The host of the apt did not speak English but was very nice and welcoming though we didn't see her much (not a problem).
The area is residential and perfectly safe. This was a good find for us and we do recommend it, especially compared to some of the expensive hotels. We visited in late April and got a great price at Milicec.