Take a look at this link http://manpages.ubuntu.com/manpages/intrepid/man5/udhcpd.conf.5.html it will show you the proper way and multiple options of configuring udhcpd. Also take a look at this link https://dunedlin.wordpress.com/2013/09/21/network-connections-with-udhcpc-and-udhcpd/ it will show you the way of starting the udhcp daemon. Let me know if this works.
I found out the issue was when I set the password for the system (as well as the AP) it wasn't the correct length or was considered an invalid password. Once I changed the password to something longer this issue went away.
udhcp actually shouldn't be required: ConnMan already contains a DHCP client by itself. In addition, systemd-networkd v 215 also contains a DHCP client, rendering udhcpc quite obsolete.