WASHINGTON — President Bush has chosen SBA Administrator Steve Preston to take over as head of the government's housing agency at a time of crisis in the industry, the White House announced today.

If confirmed by the Senate, Preston would replace HUD Secretary Alphonso Jackson, who announced his resignation last month amid allegations of political favoritism and a criminal investigation. Jackson's last day on the job is to be Friday.

Bush was to announce Preston's nomination at midday before going to Camp David.

Jackson leaves behind the wreckage of a national housing crisis and a trail of unanswered questions about whether he tilted the Housing and Urban Development Department toward Republican contractors and cronies.

Preston will take over the agency at a time of chaos in the housing market. Foreclosures have surged to record highs as rising interest rates and the collapse of the once high-flying housing market have made it impossible for some to afford their monthly mortgage payments or sell their homes.

The administration has taken some steps to provide relief to millions of people at risk of losing their homes. However, Democrats on Capitol Hill insist more needs to be done and have been moving ahead on additional rescue plans.