HUD Chief Expected to Resign

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March 31, 2008 9:17 AM

Amid the deepening crisis in housing markets, the Bush administration’s embattled Housing and Urban Development chief may be stepping down.

According to the Wall Street Journal, Alphonso Jackson may announce his resignation at a press conference this morning.  A call to HUD was not immediately returned.

Jackson has reportedly been the target of three probes – by Congress, by the HUD Inspector General, and by federal prosecutors – related to allegations he meddled in contract matters to aid friends or punish enemies.

Jackson has denied wrongdoing.  In fact, his denial – "I don't touch contracts" – delivered to Congress, reportedly piqued prosecutors' interest, because misleading Congress could be a prosecutable offense.

Recently, Sens. Christopher Dodd, D-Conn, and Patty Murray, D-Wash., called on Jackson to leave.

Jackson has reportedly been accused of attempting to retaliate against a Philadelphia city agency which did not give a contract to one of his friends; improperly awarding a $1 million contract to manage the Virgin Islands Housing Authority to a friend with no relevant experience; and steering a $485,000 contract for housing work in New Orleans to a friend. Jackson has denied wrongdoing in every case.

The HUD Inspector General concluded in late 2006 that Jackson had pressured underlings to favor contractors who supported President Bush, but said there was no evidence anyone obeyed.

Jackson originally came under scrutiny for allegedly making comments suggesting he practiced cronyism at HUD.  "Why should I reward someone who doesn't like the president, so they can use funds to try to campaign against the president? Logic says they don't get the contract. That's the way I believe," Jackson reportedly told a Dallas audience in 2006.

Jackson later said his comments were "anecdotal" and not meant to be taken literally. "During my tenure, no contract has ever been awarded, rejected or rescinded due to the personal or political beliefs of the recipient," he said.