Ongoing Turmoil
Jackson’s departure appears to be the beginning of what could turn into a drawn-out lawsuit between HUD and PHA. And the government agency will face continued scrutiny as it addresses similar problems with other housing authorities across the country.
PHA, for one, plans to take additional legal action later this year, contending that it is still being treated unfairly by HUD. Greene argues that, despite the Minneapolis agreement cited in court, no MTW agencies with full and broad agreements such as that of PHA’s have signed the standard agreement. “We asked them for a one-year extension, and they refused,” says Kirk Dorn, PHA’s general manager of communications. “They gave us various reasons for refusing but the reality is, if we had given the land over as requested we believe we would have been extended. It’s as simple as that.”
Not surprisingly, the authority has the backing of the state’s U.S. senators, Sen. Bob Casey (D-Penn.) and Sen. Arlen Specter (R-Penn). “The more than 80,000 low-income Philadelphians who are clients of the Philadelphia Housing Authority deserve answers and they deserve to have faith in their government,” Casey said in a March statement. “My main concern is the extension of Philadelphia’s successful Moving-to-Work Program. I also have serious concerns about how HUD is operating and how they make decisions that have a profound impact on Philadelphia.” Senators Casey and Specter continue to work with members on both sides of the aisle to ensure that the 84,000 residents in the Philadelphia area are not penalized because of bureaucratic infighting, says Casey’s press secretary, Kendra Barkoff.
Unfortunately, PHA is not alone in its plight with HUD. The accusations against HUD under Jackson’s leadership include steering lucrative contracts to business associates for deals with the Housing Authority of New Orleans and the Virgin Islands Housing Authority.
Though neither authority returned phone calls requesting comment, various news reports point to similar instances of cronyism as in the case of PHA. The Dallas Morning News reported that Jackson helped a friend in New Orleans land $485,000 in work over 18 months as a construction manager, adding that questions still surround a $127 million project awarded to a development team that “includes an Atlanta company for which Jackson used to work and which still owes him money.”
Indeed, a continued investigation of wrongdoings at HUD is critical, says Jon Gutzmann, executive director of the St. Paul (Minn.) Public Housing Agency. “If HUD retaliated against the Philadelphia Housing Authority, as the e-mail exchange and ‘coincidental’ timing of the funding cut to PHA seemed to suggest, then other public officials who speak out against alleged HUD cronyism and corruption are also ‘at risk,’ “Gutzmann says.” It is important that the numerous federal investigations into the alleged contracting activities of former Secretary Jackson continue so taxpayers can ultimately find out if their money was spent in the public’s interest or if it was misused.”
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