56 °F Ocean City, US
May 30, 2026

Resort OKs affordable units

Land transferred to non-profit under Housing Authority

OCEAN CITY — The city has conveyed a number of properties to a nonprofit company formed by the Ocean City Housing Authority to build more affordable housing units.

Ocean City Council unanimously approved and ordinance Thursday evening that turns the properties over to the Ocean City Community Development Corp.

The “scattered site” duplexes will be built on properties at 240-244 Haven Ave., 224-26 Simpson Ave. and 3300-02 and 3304-06 Bay Ave.

The nonprofit has obtained state funds to contribute to the construction of the 10 units, helping settle a judgment with the Fair Share Housing Center for more affordable housing units in the city.

The Ocean City Community Development Corp. will develop and manage the properties in conjunction with the Housing Authority, city solicitor Dorothy McCrosson explained to council Aug. 25.

During the public hearing on the ordinance to transfer the properties to the nonprofit, resident Donna Moore noted the city approved coastal cottage zones allowing houses on smaller lots under the guise they would be affordable, but they started selling for more than a half-million dollars. 

“That wasn’t affordable for young families starting out,” she said.

McCrosson said those homes are on the open market and do not fall under the city’s obligation for affordable housing.

She said the units operated by the nonprofit would have income-level and other requirements for people who want to live in them and that the Housing Authority would be in charge of overseeing them, not the city.

“We are not in the business of renting properties,” McCrosson said. “The Housing Authority is.” 

She explained there are “a lot of moving parts” to qualify for state funding for affordable housing and that rents would be set in accordance with the federal Department of Housing and Urban Development (HUD).

City Councilman Bobby Barr, who chairs the Housing Authority board, confirmed the process “was and is super complicated and is ongoing.” He thanked city officials and members of council. “Hopefully we can have some good young families that contribute to the community,” Barr said of applicants for the housing.

On a question from council Vice President Karen Bergman, McCrosson said the neighbors are well aware of the plans and that the city has had several workshops on the plan that were well attended.

By DAVID NAHAN/Sentinel staff

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