HUD Takes Over Atlantic City Housing Authority Citing Years of Mismanagement

ATLANTIC CITY — After years of mounting complaints, federal audits, and public outcry, the U.S. Department of Housing and Urban Development (HUD) has officially taken possession of the Atlantic City Housing Authority (ACHA), declaring the agency in “substantial default” following a string of failures to provide safe and livable housing for residents.

Congressman Jeff Van Drew (R-2nd) announced the federal intervention on Monday, July 21, 2025, calling it a long-overdue response to years of mismanagement that left hundreds of Atlantic City families in unsafe conditions.

ACHA Board Chairman Geoffrey Dorsey, however, said, the authority disagrees with HUD's assessment and will utilize a 10-day response window to make its case.

"We will file the proper disputes," Dorsey said.

The takeover comes after repeated calls from Van Drew for federal oversight, citing widespread issues including lack of heat, mold infestations, sewer problems, and retaliation against tenants. “For years, I have been fighting tooth and nail to get HUD to take over the ACHA, and now that day has finally come,” he said. “Families were freezing in their homes, living with mold, no heat, no hot water, and no help. It was unacceptable.”

Much of the concern centers around the dilapidated Stanley S. Holmes Village and extension located in the 1500 block of Adriatic Avenue, with three villages encompassing eight blocks in midtown Atlantic City. The unit mix consists of 197 – one-Bdrm units, 156 – two-Bdrm units, 58 – three-Bdrm units, and nine – four-Bdrm apartments. Built in 1937, Stanley S. Holmes Village was the first housing project of its kind in the state of New Jersey.

However, the ACHA also controls several other communities, many of which have not generated the same level of complaints, including:

THE MEADOWS ACHA HOPE VI REVITALIZATION DEVELOPMENT

The Meadows is the final phase of the Atlantic City Housing Authority and Urban Redevelopment Agency’s HOPE VI Project.

The new development is a 90-unit townhome community that will consist of 13 – one bedroom units; 52 –two bedroom units; and 25 – three-bedroom units. In addition, the new community will also include a management office, fitness area, computer learning center and a supportive services component. This new community will provide below-market rental units for low-and-moderate income families. The Meadows will be managed by Conifer Management, LLC.

• JOHN P. WHITTINGTON SENIOR LIVING CENTER
  (Elderly Only)
  202 N. New Hampshire Avenue
  Atlantic City, NJ 08401
  A four-story, mid-rise of 48 One-Bedroom apartments with central heat & air conditioning. Amenities include onsite parking, laundry facilities on each floor and each floor has a common area sundeck overlooking the Atlantic Ocean.
• SCATTERED SITES
  Scattered sites are located in each section of the city. Designed as townhouses, detached and semi-detached homes, there are 45 – two-Bdrm, 107 – three-Bdrm, 21 – four-Bdrm and five – five-Bdrm, some equipped with conveniences for the disabled, and four – four-Bdrms. Many homes feature 1 1/2 baths, all have central heat & air conditioning with private or street parking.
• WALTER J. BUZBY HOMES
  (Family)
  600 South Drive
  Atlantic City, NJ 08232
  (Managed by the Atlantic City Housing Authority and owned by the Michael Organization.)
  Buzby Homes are Garden Apartments located in West Atlantic City, known as the Chelsea Heights section. Dwelling sizes consist of 12 – one-Bdrm, 56 – two-Bdrms, 46 – three-Bdrms, and eight – four-Bdrm apartments. Most have parking on the street with some private parking. There is a playground on site. It is close to public schools and convenient public transportation. A community room is also located at the administration building.
• ALTMAN TERRACE
  (Elderly/Disabled)
  1000 Arctic Avenue
  Atlantic City, NJ 08401
  Altman Terrace is a Six-Floor, Mid-Rise building with private parking, an outdoor patio and a park. The building has two common-use elevators equipped with capabilities for the disabled. It has six floors of living space consisting of 78 – 0 Bdrm (efficiency) units and 112 – one-Bdrm Apartments. It is convenient to public transportation. The site has also has on-site security w/intra guard system, a community room w/full kitchen, a laundry room w/coin operated washers and dryers and an active tenant organization
• CHARLES P. JEFFRIES TOWER
  (Elderly/Disabled)
  227 N. Vermont Avenue
  Atlantic City, NJ 08401
  Located in the Inlet section of the city, this hi-rise is adjoined to Inlet Towers by an enclosed, walk-through tunnel. Both buildings share a spacious outside park, however each has its own private parking. This 17-floor building has a scenic view of the inlet and downtown sections of the city. It has 16 floors of living space consisting of 50 – 0 Bdrm (efficiency) units and 250 – one-Bdrm apartments, 30 of which feature accommodations for the disabled. It has three common use elevators equipped for the disabled. It is also convenient to public transportation.
• INLET TOWERS
  (Elderly/Disabled)
  220 N. New Hampshire Avenue
  Atlantic City, NJ 08401
  Located in the Inlet section of the City, this 14-floor building has private parking and a scenic view of the inlet and downtown sections of the city. It has two elevator banks equipped with capability for the disabled. There are 13 floors of living space consisting of 56 – 0 Bdrm (efficiency) units and 100 – one-Bdrm apartments. Convenient public transportation. The building has on-site security w/intra guard system, a community room w/full kitchen facility, a laundry Room w/coin operated washers and dryers and an active tenant organization
• SHORE PARK HI-RISE
  (Elderly/Disabled)
  225 N. Virginia Avenue
  Atlantic City, NJ 08401
  The building is a 17- floor hi-rise building with private parking, spacious front and rear outdoor patios, and a scenic view of surrounding neighborhoods. There are 16 floors of living space consisting of 64 – one-Bdrm and 96 – two-Bdrm apartments. It is convenient public transportation and the building has a community room w/full kitchen, a laundry Room w/coin operated washers and dryers, individual mailboxes and on-site mailing, on-site Security w/intra guard system and an active tenant organization

Dorsey said HUD's actions amount to a duplicitous asset grab.

"Van Drew never came to a board meeting. He never asked how he could be of help. He never wanted to meet with the administrators and I offered to meet with Van Drew," Dorsey said. "The federal government doesn't do anything well. They're going to try to privatize our assets or sell them off."

Dorsey said the housing authority has conducted a physical needs assessment that revealed $220 million in necessary repairs throughout all ACHA-controlled assets. The authority receives only $4 million in federal funding annually, Dorsey said. "It's a difficult task."

HUD’s July 21, 2025, letter to the ACHA cited the gravity of the situation and stated it would not allow the agency the chance to fix the problems on its own. Instead, HUD has opted to take full possession of the agency’s assets and operations. “This action represents our mission-minded focus at HUD, restoring accountability and underscoring our commitment to protecting residents and upholding safe and decent housing conditions,” said HUD Secretary Scott Turner.

The letter, authored by Principal Deputy Assistant Secretary Benjamin Hobbs, outlined that the ACHA’s failures were so severe that the agency forfeited the opportunity to cure the default. HUD’s decision allows it to take direct control within 10 business days, bypassing local leadership that some residents and federal officials say has failed them for too long.

"The federal government is complex," Dorsey said. "You're supposed to go through a process, and they skipped several steps."

The federal takeover is the culmination of a two-year push by Van Drew, who has documented numerous incidents of dysfunction. Among them: families displaced during sewer repairs, heating system failures during extreme cold, and $7.4 million in no-bid contracts that yielded little to no improvement, according to Van Drew. A former executive director, Matt Doherty, was terminated after raising alarms over the agency’s financial management.

HUD’s action is apparently designed to signal a new era for Atlantic City public housing residents. “We fought hard, and we got the job done,” Van Drew said.

Dorsey, however, said a federal takeover may not yield the kind of change the community is expecting. "They're not actually attempting to help anyone. They're not actually attempting to do anything," Dorsey added. "How are they going to do it better?"

This is could just be the beginning of a long process.

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