Maryland church fined $1,000 a day by city over homeless shelter

Josh Davis, The Baltimore Sun on Jun 9, 2026

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BALTIMORE — An Ocean City church is now facing daily $1,000 fines for operating an indoor homeless shelter that town officials say violates local zoning regulations, escalating a months-long dispute over how the resort should address homelessness.

Church officials said the first daily citation was delivered by Ocean City’s planning director Monday while volunteers and staff were serving lunch at the church’s Outreach Center. The church now faces a June 28 deadline to pay the fines and bring the property into compliance, or the city will issue a warrant.

City officials said the issue is not about the church’s mission but about enforcing the same zoning and safety rules that apply across Ocean City.

“The town has a responsibility to ensure that all facilities comply with established zoning, building, occupancy, and safety codes,” City Manager Terry McGean told The Baltimore Sun.

In a statement Monday, church officials said their legal counsel is preparing to file an action in federal court seeking to protect the shelter’s continued operation.

“For us, this is not simply a question of zoning. It is a question of faith,” Rev. Jill Williams, rector of St. Paul’s By-the-Sea, said in the statement.

The action is the latest chapter in a public feud between St. Paul’s By-the-Sea Episcopal Church and the town, which began earlier this year when the church allowed unhoused individuals to sleep in tents on its property. After town officials ordered the outdoor encampment removed, the church dismantled the tents and opened an indoor shelter, known as Shelter By-the-Sea, on March 31.

Town officials have since argued that the church converted an assembly hall into an overnight shelter without obtaining the approvals required for a “change in use.” Church leaders have maintained that providing shelter is a core part of their religious mission and have vowed to continue the ministry.

Williams told The Sun she reads the same Bible passage each day when the fines are delivered. The passage is from Matthew 25:35: “For I was hungry and you gave me something to eat, I was thirsty and you gave me something to drink.”

She said it’s unclear what will happen if and when the warrant is executed on June 28. In the meantime, “we’re filing for federal protections,” Williams said.

She said she doesn’t understand why city officials have gone this route.

“It’s baffling to me,” Williams said. “The people of Ocean City are outraged that their government is doing this, and that their tax money is being used to fight us. And there are so many comments – should we boycott Ocean City? I’m not coming down anymore if this is how Ocean City behaves.”

The church said Shelter By-the-Sea has provided 1,641 nights of shelter since opening and is currently serving an average of 27 guests each night.

Church officials also said the Outreach Center served 4,826 hot lunches between Jan. 1 and June 7, while continuing to operate a food pantry and meal ministry that has served the community for more than 25 years.

McGean said the citation was issued after the church failed to comply with a deadline to obtain approvals for the shelter operation.

He said the church converted an assembly hall into an overnight shelter without applying for permits required for a change in use. Those requirements, he said, are intended to ensure facilities meet zoning, occupancy, sanitation, building and life-safety standards.

“In this particular matter, we have vulnerable individuals being housed in a facility not originally designed or approved for that purpose,” McGean said.

He said the church had received more than 30 days’ notice to comply but had not submitted permit applications related to the shelter.

“These standards are not unique to this situation and are applied consistently to all properties in Ocean City in order to protect the health, safety, and welfare of both occupants and the broader community,” McGean said.

Town officials have not publicly outlined what additional enforcement steps could follow the daily citations.

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