ATLANTIC CITY HOUSING AUTHORITY TAKEN OVER BY FEDERAL OFFICIALS

ATLANTIC CITY, N.J.— The U.S. Department of Housing and Urban Development (HUD) has taken full control of the Atlantic City Housing Authority following repeated failures in basic management and chronic substandard living conditions for residents. HUD declared ACHA in “substantial default” after years of unresolved complaints and oversight reports citing mismanagement, financial irregularities, and safety hazards in public housing properties. Inspectors found many units consistently without heat, hot water, or working appliances, and among the lowest occupancy rates in the region, at just over 70%.
A federal review showed significant funds were spent on consultants and legal fees, with former leadership highlighting payments in excess of $800,000 to a single consultant and nearly $1 million to legal counsel over three years, along with $7.4 million awarded in no-bid contracts. Meanwhile, millions in federal grants intended for repairs and maintenance sat unused. Congressman Jeff Van Drew, who pressed for outside intervention, said, “This action brings real accountability and a path for Atlantic City families to regain safe, livable homes.” Effective immediately, HUD will replace all local leadership and directly manage the agency’s operations and budgets. Atlantic City’s housing authority now answers directly to federal officials as they implement emergency repairs and reforms.