ATLANTIC CITY - The federal Department of Housing and Urban Redevelopment has awarded $530,045 to the city Housing Authority to purchase market-rate homes and sell them to low-income residents.

The authority has spent about $5 million in Replacement Housing funds to buy 25 units during the past decade, according to HUD.

The authority has sold 16 of those units, Executive Director Richard Fox said Friday.

The program disburses funding in five-year increments to help public housing authorities increase available housing after its stock is diminished. Authorities can qualify only twice, according to HUD's Web site.

HUD granted the authority a second round to help replace units torn down in 2005 during the partial demolition of the Shore Park low-rise building in preparation for the half-built, 528-unit Hope VI project in the city's 1st and 2nd wards, Acting Director of Development Ira Fonorow said.

"Were we looking to replace every one of those at that time? That was never a certainty, it depended on how much money HUD provided, and that was a year-by-year thing," Fonorow said Friday of the 44 units the money is meant to replace.

The authority hopes to make up the difference through other funding mechanisms, such as Community Development Block Grants, Fox said.

The authority has used about a half-million dollars in CDBG money to supplement the replacement funds, he said.

E-mail Emily Previti: