OCEAN CITY, Md. - Ocean City has repealed its moratorium on new short-term rental licenses in certain residential areas after election officials determined a citizen petition had enough signatures to send the ordinance to a referendum.
City Manager Terry McGean said the town’s Board of Supervisors of Elections reviewed the petition and confirmed it met the signature requirement to force the moratorium ordinance onto the ballot. Under the town process, that determination stayed the moratorium ordinance while a special election would have been scheduled. Instead, McGean said the Mayor and Council voted to rescind the ordinance, ending the moratorium and eliminating the need for a special election.
“The ordinance is no longer in effect, and therefore there is no special election,” McGean said in an interview following the meeting.
McGean said he is not aware of any new proposal for additional short-term rental regulations at this time. He said staff have been instructed to focus on enforcing existing rules already in place.
“I think we’ve been given instructions to fairly strictly enforce the regulations that are on the books,” McGean said. He added that there are no plans to increase penalties beyond changes approved last year, but town staff will be looking closely at enforcement this year.
The decision marks the latest chapter in a debate that has stretched across multiple votes and policy changes involving short-term rentals, including minimum stay requirements and moratoriums in residential zones. Supporters of the petition effort told WBOC they want town leaders to stop revisiting broad restrictions and instead focus on consistent enforcement across Ocean City, including hotels, motels, condos, and rental homes.
Timeline of key events tied to short-term rental restrictions in Ocean City:
In September 2024, a proposal for short-term rental restrictions was sent to the Planning and Zoning Commission for recommendations.
In November 2024, the commission proposed a 30-night minimum stay requirement for rentals in R-1 zoning areas.
In January 2025, the Mayor and Council rejected the commission’s recommendations.
On Feb. 3, 2025, the Mayor and Council approved an emergency moratorium on new rental licenses in R-1 and manufactured housing zones and approved occupancy restrictions.
On March 3, 2025, the Mayor and Council approved a 30-night minimum stay requirement for R-1 and manufactured housing zones in a 4-3 vote.
On April 21, 2025, a petition was submitted to the town solicitor challenging the ordinance.
On July 22, 2025, the 30-night minimum stay ordinance failed in a referendum vote.
In October 2025, the Mayor and Council recommended extending a moratorium on new rental licenses.
On Dec. 1, 2025, the Mayor and Council approved an extension of the moratorium.
On Jan. 21, 2026, petition organizers submitted 1,257 signatures to the town clerk seeking a referendum on the moratorium.
On Feb. 17, 2026, town election officials validated the petition threshold and the Mayor and Council voted to repeal the moratorium ordinance.
With the moratorium now repealed, McGean said the town will proceed by enforcing the current regulations in place townwide as the busy season approaches.