Daily Real Estate News | March 31, 2008HUD Chief Expected to Resign
Despite denying allegations of cronyism and favoritism, observers say HUD Secretary Alphonso Jackson will resign on March 31. The allegations against the housing official take attention away from efforts to curtail losses from the residential property slump and mortgage crisis, according to a letter from Sens. Patty Murray (D-Wash.) and Christopher Dodd (D- Conn.) asking President Bush to call for Jackson's resignation.
Jackson has come under fire in recent weeks for questions surrounding contracts and grants involving contractors who donate money only to Democratic candidates. Jackson has also faced questions about the role he played in a redevelopment project in Philadelphia involving a developer friend of his and a lawsuit accusing Jackson of attempting to "punish" the city housing authority when the project was rejected.
Observers say Jackson's resignation will hurt the Bush administration's housing and mortgage initiatives, as HUD has partnered with the Treasury on several programs.
Source: The Wall Street Journal, Damian Paletta and Michael M. Phillips (03/31/08)