02/18/2026
Ocean City Council members on Tuesday opted to repeal a prior resolution on short-term rentals rather than face a second referendumon the issue, a move that could effectively end more than a year of heated debate.
Petitioners who led a similar effort during the last vacation season had gathered enough signatures to trigger another referendum, giving council members the option to recall their own ordinance or have that done — again — by voters.
The debate has centered on two narrow zoning districts that make up about 3% of the resort’s roughly 9,000 rentals, with supporters of restrictions saying they’re needed to protect the sanctity of Ocean City’s few residential neighborhoods and opponents saying those restrictions erode property rights.
Last year, voters overturned a City Council ordinance governing the length of stay in short-term rentals. This time, petitioners sought to overturn Ordinance 2025-28, passed in December, which extended a moratorium on new short-term rental licenses in R-1 residential and MH mobile home districts through Jan. 3, 2027.
At Tuesday’s City Council meeting, Board of Supervisors of Elections Chair Mary Adeline Bradford said petitions had to meet the 40% threshold of registered voters in the last election to trigger another referendum. There were 2,476 registered voters, so the target was 990 qualified signatures. On Feb. 11, the board reviewed 1,257 signatures submitted, invalidating 98 and certifying 1,159 — well above the needed threshold.
City Manager Terry McGean said once the petition is validated, the moratorium is stayed until an election occurs.
“At this point, the moratorium essentially would be lifted as of tonight,” he said.
City Council members voted 6-0 to accept the results of the petition, then Councilperson Carol Proctor moved to rescind Ordinance 2025-28.
“I do believe that the people have spoken three times,” Proctor said. “They went to referendum, they went to a special vote, they did another petition, and that has been confirmed.”
The vote to repeal the prior ordinance was unanimous, 6-0.
What this means for vacationers
The short-term rental issue has become hyper-local because of the narrow zoning districts, with months of debate regularly taking up several hours of each City Council meeting. Several City Council members repeatedly expressed exhaustion in continuing the discussion in those prior sessions.
Terry Miller, an Ocean City resident and realtor who led the referendum effort, said the debate has become a distraction for the town. In a prior Baltimore Sun interview, she made a plea to Baltimore residents.
“I think it is distracting,” she said. “Baltimore visitors have been our lifeblood — and we want you to come back. You are wanted. Don’t let this discourage you from coming because Ocean City still offers all the wonderful things that has made it your destination and your family tradition.
What happens next?
Robert Knauer, a resident who co-led the referendum effort, called for unity Tuesday night.
“I’d like to thank the residents for signing a petition and the support that we’ve had over this last petition and the last 18 months. Also, I’d like to thank the council for listening to the will of the people and putting the moratorium to bed,” he said. “I hope truly that we can put this behind us and that we can all work together to make the town great for everybody.”
Former Ocean City Mayor Jim Mathias Jr. said the point of the moratorium was to give city officials — including planning and zoning, police and public works — time to study “the impact of short-term rentals on neighborhoods.”
“And I’m not quite sure if that ever really happened,” he said. “I still think it leaves a question: What is the impact?
“I’m not going to sit here and suggest to you what the process should be, but I am going to say, with all due respect, whereas some people have found that rental opportunity and income to be very necessary for them to continue to own their home, other people have been able to invest in a home, and they want to make sure that they were able to enjoy that,” he added.
Mathias asked that a future City Council agenda address any lingering accountability issues for rental licenses.
However, Council President Matt James told The Sun the debate is likely done for now.
“I don’t expect it to come back for further discussion unless all of a sudden there’s some huge issues with the program,” James said. “I think the town’s going continue to focus on enforcement, and … I think with what we have on the books, we’ll be able to address almost all of the problems.”
Ocean City Council repealed its short-term rental moratorium after enough signatures were certified to trigger a second referendum vote.