ALBANY, N.Y.—The fate of St. Joseph’s Housing Corp., a deeply troubled nonprofit organization that recently sought bankruptcy protection, is getting worse.

A federal judge dismissed the bankruptcy case last week, and the organization’s telephone number was not in service this week.

In February, the city of Albany acquired 15 of St. Joseph’s properties through foreclosure for $282,000, using federal stimulus money through the Neighborhood Stabilization Program. These developments house 45 units, but because of their poor condition, only about a handful are occupied, according to city representatives.

Once that happened, it didn’t make sense to stay in Chapter 11, said Marc Ehrlich, the attorney representing St. Joseph’s in the case.

St. Joseph’s still has about 36 other developments. The group will have to try to reorganize outside of bankruptcy, according to Ehrlich. “They would love to survive,” he said.

The group’s headquarters was located in one of the buildings sold, which has left them without office space.

 St. Joseph’s has an estimated $1.4 million of debt, according to reports.