
Officials in Ocean City, Maryland, have filed a countersuit against a local Episcopal church as the two sides continue a legal dispute over the congregation’s operation of a barracks-style shelter for homeless people.
The mayor and city council submitted an answer and counterclaim against St. Paul’s By-the-Sea Episcopal Church on July 20 in the U.S. District Court for the District of Maryland, responding to a lawsuit the congregation filed in June.
The conflict began in February, when city officials ordered the church to stop allowing homeless people to sleep in tents on its property by April 1 or face daily financial penalties.
One day before the deadline, St. Paul’s moved the ministry indoors and opened The Shelter By-the-Sea on March 31. The facility operates every night from 7 p.m. to 7 a.m. and accommodates between 25 and 39 people, according to the church’s rector, the Rev. Jill Williams.
Beginning June 8, the city issued daily citations of $1,000 to Williams and senior warden Dan Harris, claiming that the indoor shelter violated local zoning regulations. The shelter remained open and the fines went unpaid, reaching approximately $18,000 by the time the church sued Ocean City on June 16.
In its counterclaim, the city argues that its demand to close the shelter was lawful and asks the court to “find and declare that the Ocean City zoning code” does not “impose a substantial burden on Counter-Defendants’ religious exercise.” Officials are also seeking a ruling that “the neutral and generally applicable Ocean City Code provisions at issue are constitutional.”
Ocean City further requested “a permanent injunction, enjoining Counter-Defendants from and against continuing to operate the subject housing shelter on the Church’s property, or any other housing shelter on such property that is not expressly permitted by Ocean City.”
Williams told Episcopal News Service that she was “not surprised” by the countersuit and accused city leaders of “playing with people’s lives.”
“[City officials] had the choice to just back off, and they chose to double down and completely try to categorize this as only a zoning issue while ignoring the fact that it’s a mission and a religious freedom issue,” Williams said.
The rector also alleged that officials were prioritizing the interests of businesses and property owners who want Ocean City to maintain its identity as a resort destination, saying they were “just listening to the money.”
“They’re listening to the business owners and to the property condo owners — the people that financially control this city,” Williams added. “We need to prioritize taking care of people.”
Williams noted that the city’s fire marshal inspected the shelter without finding any violations. She also said Ocean City police officers and Worcester County Health Department personnel have brought individuals to the facility for overnight stays despite the city’s effort to shut it down.
The Shelter By-the-Sea provides overnight accommodations and connects homeless guests with services including affordable housing assistance and substance abuse programs. The church previously faced criticism from city officials for allowing an outdoor tent encampment on its property in violation of a local ordinance.
Following that dispute, St. Paul’s hired staff and transferred the entire ministry indoors, where it continues to operate nightly as The Shelter By-the-Sea.



















