United States District Judge Thomas W. Thrash, Jr., handed down the sentence for Kristi Wilson, 45, who was also sentenced to three years of supervised release and ordered to pay $150,000 in restitution. She pleaded guilty to the charge in June.
A call to Atlanta attorney Sandra Michaels, who is representing Wilson, was not immediately returned Wednesday.
Kenneth Donohue, inspector general of the U.S. Department of Housing and Urban Development, said Wilson's actions were appalling.
"The message here is clear: If you do business with HUD and try to defraud, we're coming after you," Donohue said in a statement. "We are motivated to do so because like most American taxpayers, we are appalled that some people try to manipulate these programs at the expense of families in need."
The embezzlement occurred between 2000 and 2007. Wilson used the money for vacation expenses, local meals, and items for her home, including a waterslide, a barn, perimeter fencing, outdoor Christmas decorations and Christmas gifts and parties for employees.
Wilson faced a maximum sentence of 10 years in prison and a fine of $250,000. Her husband, Ronnie Paul Wilson, was a lease enforcement officer for the housing authority. Kristi Wilson also approved and paid bonuses for herself and padded her and her husband's salaries.