Ocean City Launches Primary Residence Incentive Program
Ocean City, Maryland – (August 11, 2020): Resolution 2020-09 was approved by the Mayor and City Council of Ocean City on July 20, 2020, establishing a two-year pilot Primary Residence Incentive Program (PRIP). The new program aims to promote housing affordability for new year-round residents, and to implement Ocean City’s Strategic Plan goals for livable neighborhoods for all families.
Discussion leading to PRIP began during the Town’s Strategic Plan Update in 2018, when members of the City Council prioritized Ocean City’s livable communities, with a specific focus on Vibrant Neighborhoods that encourages more year-round residents and housing options for all families. Currently, all full-time residents of Ocean City may benefit from the current Homestead Tax Credit Program, however; PRIP aims to address housing affordability through offsetting building permitting costs and local property tax costs for new residential construction of a primary residence or substantial improvement of a primary residence.
The Primary Residence Incentive Program includes a building permit fee waiver and real property tax rebate:
- A building permit fee waiver of up to $7,500 for new or substantially improved primary residences.
- A real property tax rebate of up to $2,500 for new primary residents of the Town.
Applicants may be eligible for both programs. Qualified applications will be approved based on adopted Program guidelines on a first come/first served basis up to the limit of the approved annual budget. Program eligibility will span fiscal years 2020, 21 and 22.
Primary Residence Incentive Program Goals:
The Mayor and City Council have considered whether housing affordability for full-time residents is a constraint that could be addressed by an incentive program which would implement the Strategic Plan goals. The Primary Residence Incentive Program aims to meet those goals as follows:
- The incentive program will promote investment in the community and will generally improve all property values;
- Primary residency and year-round occupancy support the local business community and increase participation in special events, recreational activities and civic participation;
- Primary residents support the workforce of a tourism-based economy as business owners, employees and volunteers;
- New year-round residents become community leaders, voters, and active citizens that make Ocean City a thriving small town all year.