Ocean City Hopes Little Lots Carry Little Price Tags

Take the space occupied by a typical Ocean City duplex and create two small single-family homes.

That's essentially the concept approved by City Council last week in an attempt to create more opportunities for year-round families to move to Ocean City.

In a seaside town where the median home price is more than $500,000 and the median price for single-family homes even greater, the year-round population fell by almost 24 percent between 2000 and 2010 as many high-priced properties were purchased by investors and wealthy summer residents. 

On Thursday (May 16), City Council passed the first reading of an ordinance that could possibly create more opportunities for affordable single-family structures. Council voted 5-1 to approve the construction of "coastal cottages" as a conditional use within the city's Drive-In Business (DB) Zone. The design would include some homes that face the street and others that front an alley.

The concept was first envisioned in the Ocean City Master Plan Re-Examination adopted in October 2012 (see full report):

"In consideration of the Master Plan’s goal encouraging new residents and the strong preference for single-family homes, the Haven Avenue bike path and the characteristics of surrounding land uses, the Master Plan is hereby amended to support conditional use zoning that will enable the construction of single-family homes on Block 1207, Lots 11- 19.01 subject to the following:

1. The minimum tract size shall be 15,000 square feet. 
2. The maximum density shall be 18 dwelling units per acre. 
3. Permitted lot sizes: 2,100 SF to 2,400 SF 
4. Conceptual bulk controls 

The Master Plan singled out a half-block (bay side) of Haven Avenue between 12th and 13th streets as a place where the new zoning might be appropriate. The existing properties there "contain a mix of commercial and residential uses including two single-family dwellings, five commercial properties and four vacant lots," according to the Re-Examination Report.

But the ordinance approved Thursday on first reading designates the new use for anywhere within the DB Zone, which is centered on West Avenue on either side of Ninth Street.

The ordinance (see attached PDF for full text) allows two homes to share a lot that would typically be occupied by a single duplex. Homes of two to two-and-a-half stories would be limited to 1,500 to 1,700 square feet of living space with some fronting on the alleys that typically divide Ocean City blocks.

Front, back and side yards would be four to eight feet in depth. But a cluster of "coastal cottages" would share common open space under the plan.

In a presentation to City Council, Ocean City Planner Randy Scheule said the proposed zoning would be consistent in density with other areas of the island and that the Master Plan's intent is to try to bring single families into starter homes on the island.

Councilman Pete Guinosso cast the dissenting vote on the first reading. 

A second and potentially final reading of the ordinance is scheduled for the City Council meeting of June 27 after public comment.