HUD Secretary Alphonso Jackson steps down
The Bush appointee's decision comes amid an investigation for cronyism in awarding federal housing contracts. His resignation takes effect April 18.
WASHINGTON — Housing and Urban Development Secretary Alphonso Jackson resigned today amid a criminal investigation into favoritism in awarding HUD contracts that critics said was blunting the agency's effectiveness in dealing with the subprime mortgage mess.
"There comes a time when one must attend more diligently to personal and family matters," Jackson said in a brief statement. "Now is such a time for me."
Noting that he had, during his tenure, "improved housing opportunities for all Americans," the secretary said "he took great pride" in increased homeownership by minority Americans.
"My life's work has been to build better communities that families are proud to call home," he said, adding that his resignation would take effect on April 18 to ensure a smooth transition.
The son of a lead smelter and a midwife nurse, Jackson was the youngest of 12 children and rose to become the first African American president and chief executive of the Dallas Housing Authority and president of American Electric Power Texas in Austin.
Tapped by George W. Bush, his fellow Texan, for a role in his presidential administration, Jackson served first as deputy housing secretary and chief operating officer before, in 2004, becoming secretary.
President Bush said in a statement that Jackson was "a strong leader and a good man" and that he had accepted the secretary's resignation "with regret."
Last week, Democratic Sens. Patty Murray of Washington and Christopher Dodd of Connecticut sent a letter to the White House calling for the secretary's departure, saying his legal problems represented a "worsening distraction" at HUD at a critical time.
"We are deeply troubled by the growing number of allegations of impropriety . . . and the secretary's refusal to answer appropriate congressional inquiries on these matters," the senators wrote. "Unfortunately, the allegations surrounding Secretary Jackson, as well as his rejection of appropriate congressional oversight of his department, undermine his ability to effectively address the current housing crisis."
The investigation into Jackson began in 2006, after he publicly disclosed that he had revoked a contract because the vendor told him he did not like President Bush. Amid an inspector general inquiry, Jackson told investigators that he had misspoken.
Jackson, 62, has since then been fending off allegations of cronyism involving HUD contractors. The FBI is looking into ties between Jackson and a friend who was paid $392,000 by HUD for work as a construction manager in New Orleans after Hurricane Katrina. In addition, Jackson is also being sued for allegedly trying to punish the Philadelphia Housing Agency for nixing a deal with his friend, music producer and developer Kenny Gamble.
johanna.neuman@latimes.com
