Justice Department Ends Probe of Former HUD Secretary
Alphonso Jackson

The U.S. Department of Justice has closed its lengthy investigation of former Housing and Urban Development Secretary Alphonso Jackson without filing any charges, Jackson’s attorneys have learned.

Jackson, who instituted sweeping changes as HUD secretary during the Bush administration, became the target of critics who falsely claimed he influenced the awarding of contracts. The termination of the Justice Department probe demonstrates these allegations were without support, according to his lawyers.

“My belief in the justice system remains whole and complete,” Jackson stated. “Though the last three years have been very trying for me and my family, I appreciate the thorough and conscientious manner in which the attorneys within the Department of Justice handled this matter.”

Jackson became the 13th HUD secretary when he took office in March 2004. He was the first leader of the agency to have a background in running public housing, having served as president of the Dallas Housing Authority.

HUD is the federal agency that funds public housing and rental assistance for low-income families. It also runs the Federal Housing Administration, which helps struggling and first-time buyers with low-down-payment home purchases and with refinancings.

As the mortgage crisis deepened during 2007, Jackson became one of the administration's leading figures in its efforts to limit the fallout from the rising tide of foreclosures. He resigned from his position effective April 18, 2008.

“I also want to thank my attorneys who have been with me throughout and assisted me greatly. They are Jim Martin and Steve Cousins of Armstrong Teasdale, Steve Braga of Ropes & Gray and John Cassidy of Baker Botts. They are great lawyers and wonderful friends.”

The son of a led smelter and nurse midwife, and the last of 12 children, Jackson devoted more than 30 years of his life to improving housing opportunities for all Americans, regardless of income, skin color or spoken accent. His life’s work has been aimed at building better communities that families are proud to call home.

When Jackson became a cabinet member, President Bush asked him to accomplish several goals, including increasing African American and Hispanic homeownership, increasing minority participation in HUD funded contracts, and the removal of HUD from the Governmental Accountability Office’s “High Risk” list where it had been for 13 years.

Jackson achieved each of those goals as well as the following:

• African American homeowners increased to nearly 50 percent from 42.8 percent.

• HUD installed a new contract review process bringing integrity to and professionalizing the contract selection process

• HUD contracts were de-bundled and women, minorities and the disabled participated in 35 percent of the contracts as compared to the 6 percent before Jackson’s tenure. This elevated the agency, which awards $1 billion in public contracts yearly, from last place to first place among all governmental departments awarding contracts to minorities, women, disabled and veteran owned companies.

• Jackson re-shuffled the executive management of HUD to include top-notch administrators who were minorities and women.