SAN FRANCISCO (MarketWatch) -- Alphonso Jackson, the Bush administration's secretary of Housing and Urban Development who has drawn criticism from members of Congress for alleged cronyism and favoritism, is expected to announce his resignation Monday, according to a media report.
A HUD spokeswoman declined Sunday to confirm the report or comment, The Wall Street Journal reported in its online edition. The Journal cited unnamed people familiar with the matter in its report on the impending resignation. See Wall Street Journal story. Subscription required
Jackson's departure will deal a blow to the Bush administration's efforts to tackle housing and mortgage problems, the Journal said.
Earlier this month, two Democratic senators, Patty Murray of Washington state and Christopher Dodd of Connecticut, sent a letter to President Bush urging him to request Jackson's resignation, according to the report.
Jackson's problems stem from his refusal to answer questions about his role in a Philadelphia redevelopment deal, according to the report, which added that Philadelphia's housing authority has filed a lawsuit alleging Jackson tried to punish the agency for nixing a deal involving a friend. The friend, identified by the Journal as Kenny Gamble, is a music producer turned developer.
Separately, a report by HUD's inspector general 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 Journal said.
Jackson has consistently denied any wrongdoing, the Journal reported
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