HUD secretary resigns amid favoritism charges

HUD secretary resigns amid favoritism charges
By Dave Montgomery | McClatchy Newspapers
Posted on Monday, March 31, 2008

WASHINGTON ?- Alphonso Jackson announced his resignation on Monday as secretary of Housing and Urban Development amid allegations that he displayed political favoritism in the awarding of federal contracts.

Jackson, a close Bush ally and former chief of the Dallas Housing Authority, is stepping down under congressional pressure at a time when the Bush administration is grappling with the economic fall-out of a steep downturn in the U.S. housing industry.

Jackson announced his decision in a brief statement at HUD headquarters and did not take questions. The resignation becomes effective April 18.

In a letter to Bush, Jackson said there ``are times when one must attend more diligently to personal and family matters. Now is such a time for me.''

With only 10 months remaining before the president leaves office, the resignation forces Bush into a quick search for a replacement who could win confirmation in the Democratic-controlled Senate. No leading candidates had surfaced immediately following Jackson's announcement.

Jackson, who has consistently denied wrongdoing, said that under his stewardship HUD has expanded minority home ownership, improved public housing and helped reduce homelessness.

``My life's work has been to build better communities that families are proud to call home," he said.

Jackson's departure further erodes the inner-circle of Texas friends and confidantes who followed Bush to Washington when he became president in January of 2001 after serving as Texas' governor. Other high-profile departures include White House political guru Karl Rove, Attorney General Alberto Gonzales and high-ranking State Department official Karen Hughes.

Jackson had been under fire for months amid charges that he had politicized his department. The Philadelphia housing authority filed suit alleging that Jackson threatened to withdraw federal aid because it failed to hire one of Jackson's friends as a contractor, allegations that Jackson denied.

Two senators ?- Chris Dodd, D-Conn., chairman of the Senate Banking Committee, and Patty Murray, D-Wash. ?- sent Bush a letter demanding Jackson's resignation after Jackson failed to respond to congressional inquiries about the Philadelphia controversy. The growing allegations, Dodd said, undermined Jackson's effectiveness in helping resolve the housing crisis.

Jackson also stirred questions about his leadership at HUD after a speech in Dallas in which he said he canceled a contract with a company because its boss didn't like Bush. He later apologized for the remarks and said he made up the story.

Jackson served as president and chief executive officer of the Dallas Housing Authority from 1989 until 1996 and later headed American Electric Power-TEXAS, a $13 billion utility company in Austin. He was named HUD secretary in March of 2004 after serving as deputy secretary.