The island has more than $8 billion in property, virtually none of which could be described as affordable to the average New Jersey resident.
The Council on Affordable Housing has determined that Ocean City must provide about 32 affordable homes in the next 10 years and rehabilitate another 71 homes.
The city is employing several options to meet its affordable-housing obligation. The city will pay another town not yet identified to provide about half of its obligation or as many as 13 homes.
The city also is considering building new rentals for senior citizens and developmentally disabled residents, said Shirley Bishop, the former director of the Council on Affordable Housing who now works as a city consultant.
By filing a plan this week, the city prevents a builder from accusing the resort of exclusionary zoning. Otherwise, a builder would be able to address the shortage of affordable housing by building at higher densities than the resort's zoning allows, she said.
But not everyone agrees with the solution.
Councilman Gregory Johnson, who represents the 2nd Ward, said Ocean City should let the resort's poorer residents invest in their own homes, not in more rental apartments.
Who wants to rent? People are looking for stability, he said. The plan they adopted is only for age-restricted and handicapped people. That closes the door to families who may want to live in Ocean City. I found that part of it to be unacceptable.
Johnson cast the lone vote against the plan.
Johnson said the city already has land available for modular homes that would be sold virtually at cost to potential buyers. Each property is deed restricted with clauses that put brakes on its escalating value.
If a buyer sells, the property's value increases not at the booming market rate but at the federal consumer price index for regional housing. This ensures that the property remains reasonably affordable for the duration of the 30-year deed restriction.
Johnson said the city has public land that is both available and in some cases is currently an eyesore.
We own a property on Second and Haven. It's in terrible condition. I truly believe the city can demolish the building and put a home in there for families in Ocean City, he said.
The rest of council approved the plan.
I think it's balanced, Business Administrator James Rutala said. It protects the city from the builder's remedy.
Rutala noted the plan can be amended as the city and City Council see fit.
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