Second referendum advances over OC short-term rentals
Ocean City voters could soon decide — once again — whether to maintain limits on short-term rentals in some residential neighborhoods.
City officials confirmed a second referendum is underway, less than a year after residents narrowly overturned a similar measure. City Clerk Diana Chavis told the Baltimore Sun that a group submitted 1,257 signatures seeking to overturn a December ordinance extending a moratorium on new short-term rental licenses in the R-1 single-family home and MH mobile home districts until Jan. 3, 2027.
The Election Oversight Board is expected to review the petition signatures on February 11 and 13.
Last year, residents collected 1,327 signatures and, by a vote of 838 to 800, overturned a City Council ordinance imposing a minimum stay requirement in the same neighborhoods — areas that make up about 3 percent of Ocean City’s approximately 9,000 rental properties.
Pressure to cancel the moratorium
The Sun reviewed a copy of the petition, which reads: “We, the undersigned petitioners, being duly registered voters of said city, hereby request that Ordinance 2025-28 in its entirety, as set forth herein, be submitted to a referendum vote of the registered voters of the city of Ocean City, Maryland for their approval or disapproval.”
That ordinance passed Dec. 1 in a 4-2 vote, with Council Secretary Tony DeLuca and Jake Mitrecic, Will Savage and Larry Yates in favor. John Gehrig and Carol Proctor opposed the motion and Council President Matt James was not present.
The order extends the moratorium first adopted on February 3, 2025, suspending the issuance of new rental permits while officials evaluate the effects of recent rental regulations. Under this policy, the city will not accept or process new applications for additional short-term rental permits in affected districts, although property owners with 2025 permits may renew for permit year 2026. Licenses also cannot be transferred during a sale of property.
The issue reignited a long-running debate over property rights and neighborhood character. At the December meeting — which featured hours of testimony — seven residents supported extending the moratorium while nearly two dozen opposed it.
Residents are divided on the issue
At the December hearing, residents were divided on the need for a short-term ban in those areas. Opponents argued the council ignored last summer’s referendum.
“It was already a settled issue and the voters decided,” said resident Robert Knauer, adding that he believes the restrictions infringe on property rights.
Resident Terry Looney urged council members to stop passing new rental restrictions.
Supporters said the moratorium protects traditional residential neighborhoods. Patti Miller told council members she hopes future families can feel the same sense of community she once did.
“Our kids had an incredible education. That was for sure,” Miller said.
Between October 1, 2024 and October 1, 2025, police recorded only 21 calls in the R-1 and MH zones, including 13 disturbance complaints and four loud calls, as well as three ordinance violations, two reports of malicious destruction of property and one trespassing call.
Former City Councilman Dennis Dare described the small-town neighborhood dynamics that opponents want to preserve: Neighbors helping each other during illness, shoveling snow for elderly residents, decorating houses together and watering plants when someone is away.
“That’s what a lot of these citizens…want in their neighborhood,” Dare said.
If enough signatures pass, the ordinance will go before Ocean City voters in a referendum, setting up another public vote on how and where short-term rentals can operate in the resort town.
Do you have a current tip? Contact Eastern Shore Bureau Chief Josh Davis at jdavis@baltsun.com or on X as @JoshDavis4Shore.
