Philadelphia Affordable Housing Organization Alleges HUD Vendetta

"After Philadelphia Housing Director Carl Greene refused to sell a piece of property to Kenny Gamble, a business friend of Alphonso Jackson, the Secretary of Housing and Urban Development, federal housing officials exchanged emails brainstorming ways to 'make [Greene's] life less happy.' One solution, according to the e-mails, was to cut off all federal housing dollars."

"On the date these e-mails were sent, HUD notified the [Philadelphia] Housing Authority that it had been found in violation of rules requiring that 5 percent of housing be accessible to disabled residents. The department later argued that because the authority refused to acknowledge it was in violation and to agree to a specific remedy, it was in violation of a broader agreement that put $50 million in federal funding in jeopardy."

The dispute centers around an affordable housing project in South Philadelphia which involved Universal Affordable Homes, founded by Gamble. A deal had been struck to sell a vacant property near the housing project to Gamble if certain stipulations were met in the development. Greene revoked the option to buy from Gamble after finding those criteria not satisfied, at which point Secretary Jackson stepped in on behalf of his friend.

"Jackson asked then-Philadelphia Mayor John F. Street to get Greene to turn over the land, but Greene said Universal failed to deliver on many of its promises, and he refused to hand over the land."

Reportedly, holding violation threats over Greene was part of a long history of intimidation and has resulted in the Philadelphia Housing Authority bringing suit against Jackson.

"Jackson's deputies, including Kendrick, assistant secretary for fair housing, repeatedly threatened in calls and in writing to find the authority in violation of both federal accessibility law and HUD's redevelopment grant, according to the lawsuit. They said the authority would be in default on the King project unless it transferred the vacant land to Gamble."

US Senator Robert Casey Jr. (D-PA), member of the Senate Banking Committee, said that he has "serious questions" about the e-mails and that "80,00 low-income Philadelphians deserve answers."

Secretary Jackson went before the Senate Banking Committee to discuss the allegations today.

Thanks to Jeff Knowles