Ocean City, Maryland, has escalated its legal fight against St. Paul’s By-the-Sea Episcopal Church, filing a counterclaim that seeks to shut down the congregation’s overnight shelter for homeless men and women.
As reported by Episcopal News Service, the resort town filed its counterclaim on July 21 in response to a federal lawsuit brought by the church. St. Paul’s sued after municipal officials began issuing citations that threatened the congregation with fines of $1,000 per day unless it closed the shelter.
The dispute began after Ocean City ordered the church to stop allowing homeless people to sleep in tents on church property. The small encampment had been established after Ocean City and Worcester County adopted ordinances in May 2025 prohibiting people from sleeping in public spaces, with violations potentially resulting in jail time.
Rather than abandon those in need, St. Paul’s raised money, hired staff and opened The Shelter By-the-Sea inside the church on March 31. The ministry operates nightly from 7 p.m. until 7 a.m. and reportedly provides shelter to approximately 25 to 39 people each night.
The shelter also offers dinner and breakfast while helping guests connect with substance-abuse recovery programs, affordable housing assistance and other resources. According to the church’s rector, the Rev. Jill Williams, the ministry is funded primarily through donations and the congregation’s own resources.
“A church is supposed to use its money to live out the Gospel,” Williams told Episcopal News Service.
Williams said the town’s fire marshal inspected the shelter and found no violations. Ocean City police officers and Worcester County health officials have also reportedly brought people to the church for overnight shelter.
Despite that cooperation, city officials maintain that the congregation is violating zoning, building and safety regulations. Ocean City argues that it is applying neutral rules and treating the church as it would any other property owner. The city’s counterclaim asks the court to authorize the closure of the shelter.
Church leaders contend that the government is reducing the dispute to a zoning matter while disregarding the congregation’s religious mission and constitutional rights.
“They 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 conflict has expanded beyond the shelter itself. According to the report, Ocean City has repeatedly rejected the church’s applications for plumbing permits connected to a washer, dryer and utility sink. Williams said neighboring churches have been permitted to install similar equipment, raising concerns about unequal treatment.
Civil authorities have a legitimate duty to enforce genuine health and safety standards. That authority, however, must not become a weapon used to obstruct religious ministry or prevent Christians from caring for the poor.
Scripture repeatedly commands believers to show mercy, defend the vulnerable and provide for those in need. The court must now determine whether Ocean City is fairly enforcing its laws or placing an unlawful burden on a church attempting to carry out that biblical responsibility.
