Today, Congressman Jefferson Van Drew announced that the U.S. Department of Housing and Urban Development (HUD) has declared the Atlantic City Housing Authority (ACHA) in substantial default. This decision comes after years of pressure from Van Drew and under the leadership of HUD Secretary Scott Turner.
On July 21st, HUD sent a letter to ACHA declaring them in substantial default. Benjamin Hobbs, Principal Deputy Assistant Secretary, stated 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.
Congressman Van Drew expressed his satisfaction with this development: “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. He emphasized that families were living in unacceptable conditions and thanked Secretary Turner for addressing these issues.
Secretary Scott Turner commented on HUD’s action: “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… Gone are the days where mismanagements and dysfunction are the norm—and we hope this action clearly sends that message.”
The background provided by Congressman Van Drew highlights his ongoing efforts since November 2022 when he first called on HUD to investigate ACHA due to complaints from residents about various dangerous conditions. His advocacy continued through numerous calls for federal intervention as conditions worsened.
In May 2025, Van Drew hosted a listening session with HUD Secretary Scott Turner involving AC public housing residents and community leaders.
