A public housing complex in North Carolina wasn’t feeling the holiday spirit last week when the manager turned away what many boys and girls wish for this time of year – Christmas presents.

That’s because in this case, “Santa” takes her clothes off for cash.

Last year, an adult nightclub called Teasers (search) donated more than 500 gifts to kids in public housing for the holidays.

But a newspaper photo of the presents being delivered prompted so many complaints from residents in the Bible Belt community that this year the local housing project is turning down the offer.

"They showed up with the gifts in a stretch limo with two of their dancers in the back," Statesville Housing Authority manager David Meachem said.

But now members of the community are criticizing the housing authority for being too judgmental during the holidays.

The pastor at the First Baptist Church said it's within the spirit for people of different backgrounds to come together and help the less fortunate.

And the manager at Teasers agrees.

“When somebody donates something, you don’t ask what they do or where they came from. It’s just given as a gift. It’s charitable,” said Traci Wahman, club manager.

The housing authority insists it already has enough gifts to go around this year, donated by churches throughout the community.

Click in the box near the top of the story to watch a report by FOX News' Jonathan Serrie.