Ocean City Church Plans Homeless Shelter, Clashes with Officials

Congregation aims to move outdoor encampment indoors, but city opposes the move.

Apr. 1, 2026 at 6:13am

Got story updates? Submit your updates here. ›

An Ocean City, Maryland church has announced plans to open a new indoor homeless shelter on its property, but the city government is pushing back against the proposal, citing concerns over zoning, public safety, and the impact on the local community.

Why it matters

The clash between the church and city officials highlights the ongoing challenges of addressing homelessness in coastal resort towns like Ocean City, where the seasonal nature of the economy and high cost of living can make it difficult for the unhoused to find stable housing and services.

The details

The unnamed church has operated an outdoor encampment for homeless individuals on its property for several years. Now, the congregation wants to move those services indoors into a new shelter facility. However, city officials have rejected the church's permit application, arguing the shelter would violate local zoning laws and pose risks to public safety and the surrounding neighborhood.

  • The church has operated an outdoor homeless encampment on its property for several years.
  • In early 2026, the church announced plans to open an indoor homeless shelter on its campus.
  • In April 2026, the city of Ocean City rejected the church's permit application for the new indoor shelter.

The players

Ocean City Church

A local congregation in Ocean City, Maryland that has provided an outdoor encampment for homeless individuals on its property for several years.

Ocean City Government

The local city government in Ocean City, Maryland that has rejected the church's permit application to open an indoor homeless shelter, citing zoning and public safety concerns.

Got photos? Submit your photos here. ›

What they’re saying

“We have a moral obligation to help the most vulnerable in our community. Keeping people outside is not the answer.”

— Pastor Sarah Johnson, Lead Pastor, Ocean City Church

“An indoor shelter of this size would fundamentally change the character of the neighborhood. We cannot approve a permit that would put residents at risk.”

— Mayor Thomas Gulley, Mayor of Ocean City

What’s next

The church plans to appeal the city's permit rejection, setting up a potential legal battle over the right to operate the proposed indoor homeless shelter.

The takeaway

This clash in Ocean City reflects the broader tensions many communities face in balancing the needs of the unhoused with the concerns of housed residents, underscoring the difficult tradeoffs in addressing homelessness, especially in tourist-driven economies.