Ocean City — Ocean City Council introduced an ordinance on May 10 which moves $2.6 million in Council On Affordable Housing (COAH) funds from the Development Trust Account to the capital account.

Council on April 17 approved a resolution authorizing a competitive bid for developing one of two properties for affordable senior housing: the former Hotel Bellevue at Eighth Street and Central Avenue and a lot at Sixth Street and Haven Avenue.

The ordinance appropriates $2.1 million to be used for developing one of those two sites.

The ordinance also appropriates $550,000 for roof replacement for Peck’s Beach Village.

City Business Administrator Michael Dattilo said the city would manage the roof replacement project on behalf of the Housing Authority and Atlantic County Improvement Authority.

Second reading and public hearing on the ordinance will me held at 7 p.m. on Thursday, May 24.

Council also approved a resolution authorizing a revised spending plan for the city’s COAH spending plan. The city previously submitted a $750,000 spending plan, which COAH approved for rehabilitation. The balance was for age restricted affordable housing.

City solicitor Dorothy McCrosson said an appellate division decision from 2012 indicated municipalities couldn’t earmark money to rehabilitate sites, which weren’t identified. She said though the rehabilitation portion of the city’s COAH spending plan remained intact, but did not include specific sites.

The city wants to use $2 million in development fees it collected under the state’s COAH rules. Since 1998, the city has collected a 1 percent development fee. Those funds are slated to expire on July 17.

McCrosson said the council on June 28 will select one of those competitive contracts – the Hotel Bellevue or the Sixth Street and Haven Avenue lot – for age-restricted housing.

“This new spending plan updates what Ocean City intends to do filling its COAH obligation,” McCrosson said.

“I’m relieved that it’s all about age restricted rental development,” Councilman Roy Wagner said. “It’s nothing to do with anything else. This will make our decision a little bit easier between the Bellevue and the other place.”