Monday, March 31, 2008

Top US Housing Official Resigns

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By Rachel L. Swarns

Washington - Housing secretary Alphonso R. Jackson resigned on Monday, saying that he needed to devote more time to his family. The announcement came as federal authorities were investigating whether he had given lucrative housing contracts in the Virgin Islands and New Orleans to friends.

His resignation, effective April 18, also comes as the Bush administration is increasingly relying on the department's Federal Housing Administration to help stanch the widening foreclosures.

In recent weeks, Mr. Jackson had faced mounting pressure to leave his post. The FBI has interviewed several of his employees, and two senior Democratic senators called on him to resign, saying the allegations of wrongdoing had undermined his leadership. Lawmakers have also raised concerns about accusations that Mr. Jackson had threatened to withdraw federal aid from the Philadelphia Housing Authority after its president refused to turn over a $2 million property to a politically connected developer.

Mr. Jackson, who assumed his post as secretary in 2004, did not address those allegations during his brief statement in the 10th floor briefing room of the U.S. Department of Housing and Urban Development.

"There comes a time when one most attend more diligently to personal and family matters," Mr. Jackson said. "Now is such a time for me."

"Seven years ago, President Bush gave me an extraordinary opportunity to serve HUD and the nation," said Mr. Jackson, who first joined the department as deputy secretary in 2001. "As the son of a lead smelter and nurse midwife, and as the last of 12 children, never did I imagine I'd serve America in such a way. I am truly grateful for the opportunity."

Mr. Jackson said that he had worked hard to keep families in their homes, to revitalize public housing and to preserve affordable housing. "During my time here, I have sought to make America a better place to live, work and raise a family," he said.

He left the room without taking any questions.

Before Mr. Jackson's resignation, federal officials had said that 130,000 vulnerable homeowners have refinanced to FHA loans, and they expect that number to increase to 300,000 by the end of the year. Critics have said much more needs to be done.

Senator Patty Murray, Democrat of Washington, called on President Bush to nominate a successor with experience and credibility.

"Hopefully, with new leadership at HUD, we can negotiate a bipartisan plan with the Bush administration to spare the maximum number of families the devastating consequences of losing their home," said Ms. Murray, who had called on Mr. Jackson to resign, along with Senator Christopher Dodd, Democrat of Connecticut.

"I hope this resignation is more than a move to simply save face," Ms. Murray said. "I hope this signals an end to the neglect of needy tenants and struggling homeowners and the beginning of an administration policy that responds meaningfully to the needs of both."

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