The NCAA outlawed athletic dorms after schools, Kentucky being the biggest example, constructed dorms for athletes that made the Four Seasons look trashy. The "Wildcat Lodge' is pretty infamous for its luxury and its parties. Google it.
There was definitely trouble before that, because upperclassmen were still allowed to live off-campus, but the underclassmen could be looked after with a strict curfew.
The NCAA will never revisit the situation, they don't trust schools to not cheat with it. It was also a Title IX issue, if you house male athletes in a palatial estate, then you've got to house female athletes in something similar.
As far as Gibbs Hall, all male freshmen and most sophomore scholarship athletes live there. Athletes have the option to remain there in future years, but most choose not to. If they live off-campus, they receive a stipend for the cost of room and board. Per athletic department policy, the head coach has to sign off on a student-athlete moving off-campus. Same goes for female athletes, they all live in the same dorm their first year, and have to have coach approval to move off-campus.
The NCAA does not allow for any dorm to be more than 50% athletes. Others that live in Gibbs are band members, scholarship ROTC students and the honors students that receive endowed scholarships from the School of Engineering. The Engineering kids may have moved to Morrill a couple of years ago, not 100% sure on that. Also counting as "normal students" at Gibbs are the male managers for all sports and other that receive scholarships from the UTAD.