Mayor Marty Small said the city carried out inspections at apartments in the Stanley Holmes Village complex over the last week.
He said what they found was staggering.
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Officials said more than 200 units have been infested by mice, bed bugs and roaches.
Dozens of apartments also have issues including inadequate heating and hot water service, malfunctioning smoke detectors, and mold.
Small said the city is moving forward with issuing violations, which will result in mounting fines, if necessary repairs are not made in a timely fashion.
The complex is managed by the Atlantic City Housing Authority.
City officials say since July 2021, the Atlantic City Housing Authority has been under the oversight of the federal Department of Housing and Urban Development or HUD.