Van Drew Secures Federal Possession of the Atlantic City Housing Authority After Years of Mismanagement

July 21, 2025 — Congressman Van Drew announced that, after years of pressure, the U.S. Department of Housing and Urban Development (HUD) has declared the Atlantic City Housing Authority (ACHA) in substantial default. Under Secretary Scott Turner’s leadership, HUD is finally stepping in to fix years of failure, taking more action in six months than the previous administration did in years.

On July 21st, HUD sent a letter to the ACHA declaring them in substantial default. According to the findings by HUD, Benjamin Hobbs, the Principal Deputy Assistant Secretary, stated the following in the letter: “Based on the gravity of ACHA’s situation, I have determined that it is not appropriate to permit ACHA the opportunity to cure the substantial debt. Further, I have also determined that the most appropriate substantial default remedy, in the context of the several factual findings made, is for HUD to take possession of the ACHA.” The agency now has ten working days to respond. To view the letter, click here.

“For years, I have been fighting tooth and nail to get HUD to take over the ACHA, and now that day has finally come,” said Congressman Van Drew. “Families were freezing in their homes, living with mold, no heat, no hot water, and no help. It was unacceptable. I promised the people I would not stop until something changed, and today, accountability is here. I want to thank Secretary Turner for giving this situation the attention it deserved. The failed governance is being addressed, and now it is going to be rebuilt from the ground up. We fought hard, and we got the job done.”

“Today, HUD notified the Atlantic City Housing Authority (ACHA) that they are in substantial default of the Housing Act of 1937. This action follows extensive oversight, technical assistance, and repeated opportunities for corrective action, all of which failed to resolve the significant issues undermining the ACHA’s operations. As a result of substantial default status, HUD is addressing failed ACHA governance, allowing HUD to engage directly with residents and take possession of the public housing agency, its programs, and assets in a swift manner. 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. Gone are the days where mismanagements and dysfunction are the norm—and we hope this action clearly sends that message to the communities, families, and residents we serve,” said Secretary Scott Turner.

Background:

November 2022– I called on HUD to investigate the ACHA after hearing from residents about issues with trash pickup, HVAC issues, hot water outages, and other dangerous conditions at Stanley Holmes Village.

November 2023– I formally called for a federal takeover of the ACHA after HUD finished its audit and found 75 different violations. HUD gave the Authority a failing grade and declared it “troubled”.

December 2023– I renewed my calls for federal intervention as ACHA residents continued to suffer in dangerous conditions, such as mold and no heat.

January 2024– I demanded that former HUD Secretary Marcia Fudge meet with residents of the ACHA and take action to ensure their safety. This was following the failure of the heat and hot water systems during a severe “Code Blue” winter freeze, forcing residents to use ovens and stoves to warm their homes.

February 2024– Once again, I called for a federal takeover of the ACHA after residents were abruptly relocated to a hotel for nearly a month, citing the need to repair broken sewer pipes. On top of being forced from their homes with minimal notice, they were moved into hotels without functional kitchens and were unable to bring their pets with them.

March 2024– I wrote to the HUD Inspector General calling for a criminal investigation into the ACHA, highlighting the misuse of federal funds and no-bid contracts that failed to improve housing conditions.

May 2024– I worked with the House Financial Services Committee to hold a hearing on the mismanagement of funds in public housing and selected Former ACHA Executive Director Matt Doherty to testify. He testified on $7.4 million allocated to no-bid contracts that delivered limited or no improvements to public housing. He was fired in 2023 for raising these concerns.

November 2024– I wrote to HUD notifying them that tenants were being evicted in retaliation for raising concerns with my office. I called for an end to these evictions.

January 2025- The beloved dog of resident Tammy Bethea froze to death while trapped in an ACHA apartment. Tammy was relocated to a hotel because of heating repairs, and due to policies of the ACHA, she was forced to leave her dog behind.May 2025– I hosted HUD Secretary Scott Turner for a listening session with AC public housing residents and community leaders.

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