Cape May gives first approval
to 21 new home lots

On September 22, the City of Cape May Planning Board voted 8 to 1 to give RAJ Realty Investments LLC a first approval to split its land into lots. The land is two full city blocks along Maryland Avenue, at 1501 Maryland and Idaho Avenues and 1501 Idaho and Cape May Avenues. The plan makes 21 home lots and one more lot with no homes proposed.

The city zones this land for low density homes, and part of it falls under the city's preserved wetlands rules. The lots range from about 9,400 to 18,000 square feet. A new street, an extension of Brooklyn Avenue, would curve through the site and end in a cul-de-sac. A homeowners association would take care of the shared street and the other shared parts of the neighborhood.

The approval comes with conditions. First the applicant gets permits from the state Department of Environmental Protection. Then the applicant can ask City Council to remove streets that are on the city map but were never built. The board engineer said the area's water quality management plan has to change before the homes can have sewer service. The approval also calls for five affordable homes, which the applicant told the board it plans to provide on a separate property. The approval sets the lowest floor of each new home at least 10.5 feet above sea level.

Preliminary approval is a first step. The applicant comes back to the board for final approval. Neighbors raised traffic and environmental concerns at the hearing, and the member who voted no said he would have preferred state approval first. The board chair said the application meets the city's zoning code.

The vote is recorded in the board's September 22, 2026 minutes. Plans and approvals can change. Written by Justin Kelly, NJ Real Estate Broker-Salesperson, from the City of Cape May Planning Board meeting minutes.