2012 R2 DHCP server with Hot Standby setup is not giving out available IP addresses.

After setting up DHCP Hot Standby mode the DHCP server runs out of IP addresses even though there are 132 left to give out.  Lets look at what DHCP Server statistics in hot Standby mode say about the scope. 

Total Addresses,471
In Use,330 (70%)
Available,141 (29%)
Addresses Available (this Server's Pool),132 (28%)
Addresses Available (Partner Pool),9 (1%)
Addresses granted (this Server's Pool),330 (70%)
Addresses granted (Partner Pool),0 (0%)

The above is from DHCP server showing 471 addresses available. 330 in use plus 9 held by hot swap. That leaves 132 so the math checks out. Now my DHCP event logs and clients are not getting IP addresses. I removed Hot Standby and the original DHCP server starts assinging addresses as usual. When I re-setup the failover the same thing happens. I do not understand why the 132 ip addresses are not available?  Has anyone seen this before?

Below are the event logs from the server showing the errors at the time there should be 132 free.

IP address range of scope VLAN 110 NEW USERS is out of IP addresses.
==========Client is refused IP address as it indicates the server is out of IP addresses..=================
Log Name:      DhcpAdminEvents
Source:        Microsoft-Windows-DHCP-Server
Date:          10/8/2015 5:32:40 PM
Event ID:      20287
Level:         Error
User:          NETWORK SERVICE
Computer:      DHCPServer.mycompany.com
Description:
DHCP client request from D8CB8A7EB3BA was dropped since the applicable IP address ranges in scope/superscope VLAN 110 NEW USERS are out of available IP addresses. This could be because of IP address ranges of a policy being out of available IP addresses.

Hoping someone may have seen this or can offer help. I need a failover solution and Hot Standby is perfect for our environment only if I can get it to work.

Thanks,

KatAttack