A new type of affordable housing rises in Ocean City

Ocean City’s housing market has virtually exploded in recent years with the construction of upscale, million-dollar and multimillion-dollar homes.

So, the idea of “affordable housing” being built in the seaside resort might seem foreign or even far-fetched.

But local, county and state officials held a groundbreaking ceremony Wednesday to celebrate the start of construction on a project that will bring 60 units of affordable housing to Ocean City for families with low or moderate incomes.

The Pecks Beach Village development on the north side of Fourth Street reflects the Ocean City Housing Authority’s strategy to build attractive, modern projects that are compatible with the surrounding neighborhoods, officials said.

“These new units will match the rest of the community,” Mayor Jay Gillian said in remarks at the groundbreaking ceremony. “I think that when you look at this, it will blend in nicely.”

The existing 40-unit Pecks Beach Village complex on the south side of Fourth Street will be demolished when the new project is completed in early 2027. The existing Pecks Beach Village complex was built in the 1960s and is located in a part of Ocean City vulnerable to flooding during storms.

    Dignitaries turn the first ceremonial shovelfuls of dirt at the groundbreaking.
  

Bob Barr, chairman of the Ocean City Housing Authority’s board, thanked Gillian, members of City Council and others for their political, community and financial support of the project.

“We’ve all worked together to make this happen,” said Barr, who lives in Ocean City, is a former city councilman and currently serves as a Cape May County commissioner.

Barr noted that the beginnings of the project took hold when the city was recovering from the flooding caused by Superstorm Sandy in October 2012. At that time, the city was carrying out the major task of getting Pecks Beach Village residents back into their flooded homes.

“This has been a vision that is 10 years in the making,” Barr said of finally beginning construction on the new project.

State Assemblyman Antwan McClellan, an Ocean City resident who once lived in Pecks Beach Village, said the new project will be crucial in attracting young families, veterans and senior citizens to Ocean City by giving them an affordable place to live.

“These homes are going to be dreams for people,” McClellan said.

    A rendering depicts what the duplex-style buildings will look like when completed.
  

The design of the housing project will feature 15 duplex-style buildings containing four units each. Speaker after speaker at the groundbreaking ceremony emphasized that the homes will have an eye-catching appearance.

“The homes that are going to be built are going to be gorgeous,” said Melanie Walter, executive director of the New Jersey Housing and Mortgage Finance Agency.

Financing for the project will consist of a mix of grants and loans from the New Jersey Housing and Mortgage Finance Agency, funding from the city of Ocean City and tax credits given to private investors.

The project will help Ocean City meet its state-mandated obligation to provide its “fair share” of affordable housing under a court settlement in 2018.

Century Savings Bank and Sturdy Savings Bank, two financial institutions with strong local ties, will also be part of the funding mix with private investment through tax credits.

“Banks like ours take care of our local communities,” Century Savings President Dave Hanrahan said of his bank and Sturdy Savings.

Sturdy Savings President Gregory Matuson, who lives in Ocean City not far from Pecks Beach Village, said it will be a pleasure for him to visit the neighborhood to see how it will be enlivened by the new project.

“We’re breaking ground today on the most ambitious affordable housing project in Ocean City’s history,” Matuson said.

The Ocean City Housing Authority awarded a $23 million contract to Gary F. Gardner Inc. of Medford, N.J., to build the 60 units.

But planning, engineering, designs, legal fees, demolition costs, road construction and financing interest will push the total cost to close to $32 million, said Rick Ginnetti, owner of the Brooke Group, a consulting company that helped oversee the development.

Pecks Beach Village continues a series of affordable housing projects built by the Ocean City Housing Authority in the last five years.

In 2021, the authority completed a nearly $7 million affordable housing project for senior citizens at Sixth Street and West Avenue in downtown Ocean City.

Dubbed Speitel Commons, the 32-unit building was hailed as a success for integrating affordable housing in the heart of Ocean City with attractive architecture that blended in with the surrounding neighborhoods.

In 2024, the authority built a new type of affordable housing for Ocean City featuring attractively designed duplexes scattered within three residential neighborhoods. The $4.2 million project included five duplexes consisting of a total of 10 affordable housing units for low- or moderate-income families to rent.

    Pilings are being installed as the buildings begin taking shape.
  

Ron Miller, the housing authority’s executive director, called the Pecks Beach Village groundbreaking ceremony “a moment that has been years in the making.”

“(It) is my honor to welcome you to the official groundbreaking of the new Pecks Beach Village – a project that represents progress, partnership, and our unwavering commitment to the families we serve. Today is more than the start of construction. It is the start of a new chapter for Ocean City,” Miller told the crowd.

Miller gave credit to his predecessor, the authority’s former Executive Director Jacqueline Jones, for her role in the planning and development of the new Pecks Beach Village. He also praised the authority’s staff, the professional consultants and others who were part of the project.

While recalling the history of the project leading up to the start of construction, Miller pointed out that there were challenges and complexities that the housing authority had to overcome.

Ultimately, the project offers the promise of “high-quality, affordable homes for the people of Ocean City,” he said.

“This is not just housing – it is opportunity. It is stability. It is a foundation on which families can build their futures. Anyone who has worked in affordable housing knows that progress is rarely simple. From planning and design to bidding and funding, this project has required persistence and resilience,” Miller said in closing remarks.

    The existing Pecks Beach Village housing complex, dating to the 1960s, will be demolished when the new project is completed.