WASHINGTON, March 31, 2008

HUD Chief Resigns Under Cloud

Housing And Urban Development Secretary Alphonso Jackson Is Under Criminal Investigation

  • Housing and Urban Development Secretary Alphonso Jackson has been fending off allegations of cronyism and favoritism involving HUD contractors for the past two years.

    Housing and Urban Development Secretary Alphonso Jackson has been fending off allegations of cronyism and favoritism involving HUD contractors for the past two years.  (AP)

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(CBS/AP)  The Bush administration's top housing official, under criminal investigation and intense pressure from Democratic critics, announced Monday he is quitting.

Housing and Urban Development Secretary Alphonso Jackson said his resignation will take effect on April 18. The move comes at a shaky time for the economy and the Bush administration, as the housing industry's crisis has imperiled the nation's credit markets and led to a major economic slowdown.

Jackson, 62, has been fending off allegations of cronyism and favoritism involving HUD contractors for the past two years. The FBI has been examining the ties between Jackson and a friend who was paid $392,000 by Jackson's department as a construction manager in New Orleans after Hurricane Katrina.

The HUD chief made no direct mention of that in his resignation statement. Explaining his move, he said: "There comes a time when one must attend more diligently to personal and family matters. Now is such a time for me."

He did not take questions or elaborate on the family reasons he cited for the decision. The group assembled to hear Jackson's statement applauded and he left the room.

Jackson has a friendship with President Bush that dates to the late 1980s, when they lived in the same Dallas neighborhood. He was the first black leader of the housing authority in Dallas and president of American Electric Power-TEXAS in Austin.

On Monday, Jackson said he has spent more than 30 years of his life improving housing opportunities for all Americans regardless of income or race.

"My life's work has been to build better communities that families are proud to call home," the embattled housing director said.

Jackson said he is staying on three more weeks to ensure an orderly transition of the leadership of HUD.

His statement offered an upbeat review of his own record.

He said he and his team at the housing agency had helped families keep their homes, reduced chronic homelessness and "transformed public housing."

A week ago, Democratic Sens. Patty Murray of Washington state and Christopher Dodd of Connecticut said that Jackson's problems represented a "worsening distraction" at HUD at a time when the nation needs a credible housing secretary who is beyond suspicion.

When the existence of the criminal probe against Jackson was revealed in October, the White House said Mr. Bush supports Jackson and that Jackson "expects that the investigation will clearly establish that he did nothing improper or unethical."

In another controversy, the housing authority in Philadelphia has filed a lawsuit alleging that Jackson tried to punish the agency for nixing a deal involving music-producer-turned-developer Kenny Gamble, a friend of Jackson.

At a congressional hearing this month, Jackson repeatedly refused to answer questions about the Philadelphia redevelopment deal.

Last year, the inspector general at Jackson's department found what it called "some problematic instances" involving HUD contracts and grants, including Jackson's opposition to money for a contractor whose executives donated exclusively to Democratic candidates.

The HUD IG found that Jackson blocked the money "for a significant period of time." Jackson blamed his own aides for the delay.

In 2006, Jackson triggered the IG inquiry when he said publicly that he revoked a contract because the applicant who thanked him said he did not like Mr. Bush.

Jackson later told the IG's investigators that "I lied" when he made the remark about taking back the contract.

After the announcement, the inspector general's office did not comment on the investigation.

Helen Albert, deputy inspector general for management and policy, told CBS News: "We have seen the remarks that the secretary made to the press this morning - and there is nothing more that we can add."

©MMVIII, CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
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by Gary Kempf April 1, 2008 10:31 AM EDT
Another Bush appointed criminal?
Tell me it ain''t so????
Reply to this comment
by kisskillme April 1, 2008 9:18 AM EDT
this face is soo familiar to me!
seems i ever saw him somewhere!
oh~ that''s __agemingle.com___ his pictures were found at that site! i know there are many hot girls there!
Reply to this comment
by kansas1946 April 1, 2008 2:15 AM EDT
Wow...good to know that they spiked the Kool-aid with LSD. And here I was afraid the hate-mongering rightwing nutjobs were going to stay home this year. Silly me...


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Posted by wfbdem at 10:23 PM : Mar 31, 2008
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LOL. No chance, wfbdem. Wasn''t that the silliest post you ever heard. LSD indeed. :o)
Reply to this comment
by rebelscout April 1, 2008 1:51 AM EDT
Aw, Gump and his gang of idiot''s have stacked the supreme court so, on appeal, they get away with all their criminal activity!
Reply to this comment
by apprxam April 1, 2008 1:46 AM EDT
The only thing his cabinet officers has been able to do is break the law, steal money and quit midterm. No work was ever done, nothing lost.
Reply to this comment
by singingrick April 1, 2008 1:43 AM EDT


Another Bu$h crony under indictment. Imagine that.


Reply to this comment
by apprxam April 1, 2008 1:43 AM EDT
He said he and his team at the housing agency had helped families keep their homes, reduced chronic homelessness and "transformed public housing."

A. Jackson.

With foreclosures at an all time high and Katrina victims forgotten by this stupid, clueless man. What a joke. The lenths one goes through to protect his/her image. Black or not, he''s a da*n criminal. Part of the "Bush Crime Family", which has their share of black folk.
Reply to this comment
by barbaraf4 April 1, 2008 1:42 AM EDT
Our Judicial System is going to be tied up for years to come sorting out where the bodies are buried in this Administration.
Reply to this comment
by apprxam April 1, 2008 1:40 AM EDT
Airmac5....Are you serious? Did you vote for Marion Barry or Kwame Kilpatrick? Get real, man.
Reply to this comment
by wfbdem April 1, 2008 1:23 AM EDT
Democrats going after another black American, typical of the RACIST democrat party. nothing here but racism, DNC=KKK I bet Clinton was leading the charge and holding the rope

Posted by airmanc5

Wow...good to know that they spiked the Kool-aid with LSD. And here I was afraid the hate-mongering rightwing nutjobs were going to stay home this year. Silly me...
Reply to this comment
by gce65 April 1, 2008 12:47 AM EDT
Bush to handlers: "Uh-oh, another scandal in my administration! Al Jackson. Do I know him? Have I told him he''s doing a heckuva job?"

Handlers: "Yessir, we''ve lost count. Eighteen? Twenty? Yessir, heckuva job."

Bush: "Quick, get me out of town!"

Handlers: "Yessir. Uhhh, there''s a NATO meeting you could attend in Europe."

Bush: "Fine. Pack my stuff. Anything else I should know?"

Handlers: "The Pew Research Centers have your approval rating at an all-time low of 28%, with 63% disapproving."

Bush: "Forget my stuff. We''ll buy new stuff in Europe. Just fuel up the plane."

Handlers: "Well, sir, the dollar isn''t going so far in Europe these days. Maybe you could just bring your executive wind breaker."

Bush: "Huh-huh, huh-huh. He said wind breaker."
Reply to this comment
by jerr11 April 1, 2008 12:26 AM EDT
It''s always the same story with these neocons.

After they raked in the millions using their office and influence, they quit, claiming they want to spend more time with their kids.

Let''s hope justice catches up with them so that they spend more time in the slammer instead!

Reply to this comment
by rebelscout April 1, 2008 12:05 AM EDT
I''m sure gw has a job for him. Graet liars stick together.
Reply to this comment
by gce65 March 31, 2008 11:49 PM EDT
The real question is where he''ll find employment next, even after possible convictions. No doubt in some neocon think tank like the American Enterprise Institute (AEI) or Project for the New American Century (PNAC). Or maybe he''ll work at the Washington Times, the right wing Moonie newpaper. Want a scare? Try looking up its founder Sun Myung Moon. There''s an upstanding neocon! ha!
Reply to this comment
by rebelscout March 31, 2008 10:53 PM EDT
Bush might as well have left Jackson in office. Nobody but the neocons are going to trust ANYONE He puts in ANY office!!
Reply to this comment
by rebelscout March 31, 2008 10:51 PM EDT
Bush might as well have left Jackson in office. Nobody but the neocons are going to trust ANYONE He puts in ANY office!!
Reply to this comment
by rebelscout March 31, 2008 9:56 PM EDT
He must use that new staffing firm, Crook''s are Us.
Reply to this comment
by kansas1946 March 31, 2008 9:39 PM EDT
Yawn. Another crook in the Bush administration. Frankly, that is not even news any more.
Reply to this comment
by rebelscout March 31, 2008 9:08 PM EDT
President Grant has to be laughing from the grave. His is no longer the most corrupt presidency!
Reply to this comment
by rebelscout March 31, 2008 9:02 PM EDT
NICE ONE DRAGON,LOL!
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