Our waterfront community is about to see a major transformation. Atlantic City officials have unanimously approved a long-term tax incentive that will bring 38 new townhomes to the Inlet section, just steps from the iconic Absecon Lighthouse and the Atlantic City Boardwalk.
The city council voted on April 22 to grant the tax exemption to K. Hovnanian Terraces at Absecon Urban Renewal LLC, clearing a crucial hurdle for the ambitious development project. This isn't just about adding homes—it's about reimagining an entire neighborhood and creating new opportunities for families to put down roots in Atlantic City.
Transforming Nearly an Entire Block
The development will span nearly every parcel between Pacific Avenue, South New Hampshire and Dewey Place, creating 39 new lots in the process. Only a single parcel with an existing single-family home will remain untouched, preserving a piece of the neighborhood's history while ushering in its future.
The Casino Reinvestment Development Authority gave the project site plan approval in January 2025, setting the stage for construction to move forward. According to documents from the CRDA, the townhomes will be thoughtfully distributed across four buildings: one building with 11 homes fronting South New Hampshire, two buildings with 6 homes each along Dewey Place, and one building with 15 homes fronting Pacific Avenue.
The developer will also construct three new roads and create an alley off Dewey Place, improving connectivity throughout the neighborhood.
Modern Homes Built for Today's Families
Each townhome will offer approximately 1,820 square feet of living space with three bedrooms and 2.5 bathrooms—ideal for growing families or those seeking comfortable coastal living. The homes are designed with modern conveniences in mind, featuring first-floor garages with two parking spaces and driveways with room for an additional vehicle.
Looking toward the future, every unit will include a dedicated electrical circuit for charging electric vehicles, reflecting a commitment to sustainable living and forward-thinking design.
Part of a Larger Vision for the Inlet
This project represents just the beginning of K. Hovnanian's ambitious plans for our community. According to a January press release from Atlantic City Mayor Marty Smalls, the developer aims to deliver up to 300 units in the Inlet section of the city.
A presentation from the Mayor's State of the City address in January revealed that K. Hovnanian is also planning to build 74 homes along Pacific Avenue between S Boston and S Montpelier avenues, just north of the former Atlantic Club Casino Hotel. That proposal would transform two surface parking lots, though the developer is still refining those plans.
While the council approved the legislation on April 22, the specific terms of the financial agreement have not yet been made public as of April 30.
Developer Shows Strong Regional Growth
K. Hovnanian's commitment to our region comes during a period of significant growth for the company. According to the firm's October 2025 annual report, it raised its homebuilding revenues in the Northeast by nearly $116 million to $1.15 billion. That impressive result reflects a 19.6% increase in home deliveries, though partially offset by a 4.8% decrease in the average sale price.
The company noted that the decrease in average sale price reflects new communities delivering homes that are lower-priced and smaller than those in the previous fiscal year—potentially making homeownership more accessible to a broader range of families. Across the United States, the firm delivered a combined 6,431 homes in FY 2025.
For Atlantic City residents, this development signals renewed confidence in our community's future and the potential for continued growth in the Inlet neighborhood. As construction moves forward, we'll be watching closely to see how these new homes help shape the next chapter of our city's story.
