HUD Alphonso Jackson

Housing and Urban Development chief Alphonso Jackson resigned Monday amid allegations of cronyism with contractors.

Jackson has drawn heat from top lawmakers in recent weeks over on-going investigations by the U.S. Justice Dept. regarding Jackson's possible connection to improperly awarded contracts.

Senator Chris Dodd, chairman of the Senate Committee on Banking, Housing, and Urban Affairs, called for Jackson's resignation March 21, noting an Inspector General's report which reported that Secretary Jackson advised his senior staff to improperly take political affiliation into account in awarding contracts.

"I do not believe Secretary Jackson is capable of effectively carrying out his responsibilities and the responsibilities of the Department of Housing and Urban Development," Dodd said. "Now, more than ever, we need a HUD Secretary who can devote his full energy to solving our nationšs housing crisis."

The National Journal reported that Jackson helped a friend, William Hairston, win a $485,000 contract in January 2006 for work with the Housing Authority of New Orleans. Hairston, a Hilton Head Island, S.C.-based stucco contractor, worked for 18 months as a construction manager under the contract, according to the National Journal.

Senator Patty Murray, chairman of the Senate Appropriations Subcommittee on Transportation, Housing and Urban Development, asked Jackson to answer questions regarding the allegations during subcommittee hearings March 11, but said his responses were insufficient.

"My subcommittee funds every dollar that is spent at HUD," Murray said following the hearings. "We have an obligation to the taxpayer to see to it that those dollars are administered without corruption and favoritism."

Jackson said he was resigning to "attend more diligently to personal and family matters." He will officially leave his post April 18.

President Bush said that after seven years of service under his administration he accepted Jackson's resignation with regret.

"I have known Alphonso Jackson for many years, and I have known him to be a strong leader and a good man," he said.