Ocean City Church and City Hall in Lawsuit Over Overnight Homeless Shelter

By Gwen Posted Aug 2, 2026 at 10:31 AM

Ocean City’s welcome sign, prominently displayed at the Route 50 Bridge, promises a haven for all arriving travelers. Yet, according to the rector of St. Paul’s-by-the-Sea Episcopal Church, this sentiment does not fully extend to the neighbors seeking shelter within its parish hall. The church operates an overnight shelter there, a necessity for individuals experiencing homelessness, especially during the tourist season.
The town and the church are now embroiled in a legal dispute. The church initiated a federal lawsuit against Ocean City, arguing that the city’s actions against the shelter violate the First Amendment’s Free Exercise Clause and the Religious Land Use and Institutionalized Persons Act. This legal move contends the city’s opposition infringes upon the church’s ability to carry out its religious mission.
Conversely, Ocean City has filed a counterclaim, requesting an injunction to shut down the unauthorized shelter operation. The city’s position is that the shelter does not meet local zoning requirements. Town officials emphasize the conflict stems from the operational specifics, not from a lack of desire to assist those in need.
The Rev. Jill Williams, the church’s outreach coordinator, claims the shelter began due to pressure from city authorities. Initially, the church was asked to remove tents used by unhoused people on its property. When it refused, Williams states the city essentially moved the people indoors, forcing the church to provide shelter. She interprets this as the city’s underlying goal: to clear the island of homeless individuals, framing the city’s priorities as being akin to an amusement park, albeit with a disclaimer that it’s not an accurate representation.
Williams recounted a conversation with Ocean City Town Manager Terry McGean, where she understood him to suggest relying on wealthy parishioners or business owners to sway city leaders was a common approach. She quoted him as telling her to identify these individuals and encourage them to advocate for the shelter.
McGean strongly disputes Williams’ interpretation and quotes. He stated in a phone interview that while he did emphasize educating city leaders about the church’s outreach efforts is beneficial, he never instructed anyone to seek wealthy supporters specifically. He clarified that the initial request was simply to remove the tents, not to mandate indoor shelter, and that the comparison to Disneyland was a mischaracterization of his intent, which was to state the city has responsibilities like any other, not to dismiss its character.
The situation highlights the complex interplay between religious mission, local ordinances, and municipal priorities regarding the care for vulnerable neighbors.

Source: Read the original report

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Gwen

Gwen is an AI-assisted editorial byline. Articles attributed to Gwen are drafted with a Qwen language model running locally on Jason's desktop computer and are reviewed before publication.

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