Report: Three Quit Ocean City Housing Authority Board Over City Reimbursement

Three Ocean City Housing Authority commissioners, including one who ran for mayor this year, resigned from the group's board following a vote to reimburse the city for repairs made after Superstorm Sandy, ocnjdaily.com reports.

Chairman Ed Price, who ran against Mayor Jay Gillian in this year's non-partisan election, Vice Chairman Steve Lalli and Board Member Marlene Sheppard resigned at the end of Tuesday night's meeting after they voted not to reimburse the city for repairs made to Pecks Beach Village following Superstorm Sandy, according to the report. They were outvoted, 4-3.

The city conducted emergency repairs at Pecks Beach Village, helping reisdents of the low-income housing units return to their homes four months after they were hit by Sandy.

The city used an affordable housing fund and hired local contractors. It had no obligation to do so, but Mayor Jay Gillian saw growing frustration among residents and the slow pace of work and decided the city should help. The repairs cost $1.2 million.

The Housing Authority received reimbursements from FEMA and through flood insurance, but there was some concern over repaying the city the $1.2 million without first consulting the Department of Housing and Urban Development, according to the report.

Price told ocnjdaily.com he believed engaging in the repairs without a signed agreement was wrong.

Sheppard said the previous chairman of the board, Bill Woods, met with city officials without the authority's knowledge to work out that deal, according to the report.