Atlantic City celebrated a new chapter in development Wednesday as K. Hovnanian Homes officially broke ground for a new upscale housing development in the Southeast Inlet.

Terraces at Absecon Inlet will offer 38 waterfront homes starting in the high $700,000s to the neighborhood has long stood barren amid promises of future development.

“Growing up here in the inlet, these lots sat barren for decades,” Councilman George “Animal” Crouch said. “Not just years, decades. It’s a very proud day, especially for anyone who grew up here in the inlet.”

The area long has sat as a not-so-hidden gem.

Where else would beachfront property with a nearby Boardwalk and ocean views lie undeveloped.

“No one could assemble it,” explained grant consultant Jim Rutala. “Government tried and they failed.

Then developer Pat Fasano came in with a color-coded map and “the will that he wasn’t going to fail.”

Developer Pat Fasano with Mayor Marty Small. (Photo by Edward Lea/City of Atlantic City)

Rutala also credited the Inlet Community Development Corporation that works to update FEMA flood maps and process Letters of Map Revision for the Seawall area to reduce local flood-risk barriers and encourage neighborhood revitalization.

That all led to welcoming back K. Hovnanian to Atlantic City.

“We appreciate your commitment,” Small told them, promising those listening, “it will be hundreds of units by the time we are done.”

He said he could not yet offer details as to what comes next.

“Today is more than just breaking ground on a new community for us,” said K. Hovnanian District President Nikki Mallozzi. “It’s about investing in Atlantic City and being a part of what comes next. We’re thrilled to be back, we’re excited about this location and we’re even more excited about the future.”

The four-story townhomes will feature about 1,848 square feet of living space, three bedrooms, 3½ bathrooms, two-car tandem garages, open-concept living spaces and top-level balconies to highlight the view of the ocean.

The development is one of 49 permitted projects either under construction or ready to begin construction in the coming weeks, with 31 developers, Rutala said.

That includes 497 housing units, with the majority workforce housing.

“This is a great start today, but theres going to be a lot more,” Rutala said.