Today's Article
Shaun Donovan was
sworn in as HUD
secretary on
January 26th, 2009.
He has quite a bit of
work to do.
sworn in as HUD
secretary on
January 26th, 2009.
He has quite a bit of
work to do.
The American Spark
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HUD Performance Central To Obama's Economic Plan
By Cliff Montgomery - Feb. 18th, 2009
For too long, the Department of Housing and Urban Development (HUD) has been little more than a second-
tier federal agency. But America's current economic meltdown, made particularly harsh thanks to a record
number of foreclosures, has made HUD an essential player in Obama's economic recovery plan.
"HUD's role has never been more important," proclaimed President Obama during a radio address on Dec.
13th. During the broadcast, Obama made a point of announcing his nominee for HUD secretary, Shaun
Donovan.
"As Commissioner of Housing Preservation and Development in New York City, Shaun has led the effort to
create the largest housing plan in the nation, helping hundreds of thousands of our citizens buy or rent their
homes," said Obama during the December broadcast.
"Prior to joining Mayor Bloomberg’s Administration, Shaun worked both in business, where he was responsible
for affordable housing investments, and at one of our nation’s top universities, where he researched and wrote
about housing issues," Obama continued.
"This appointment represents something of a homecoming for Shaun, who worked at HUD in the Clinton
Administration, leading an effort to help make housing affordable for nearly two million Americans. Trained as
an architect, Shaun understands housing down to how homes are designed, built, and wired," added Obama.
Donovan was sworn in as HUD secretary on January 26th, 2009. He has quite a bit of work to do.
The department's mission of providing fair, safe and affordable housing now necessarily is a key part of the
Obama Administration's recovery plan, which is the largest and most ambitious stimulus package since the
Great Depression.
"How housing is handled is going to be crucial to any hopes of an economic recovery," Jerry Howard, president-
CEO of the National Association of Home Builders, was quoted as saying in a National Journal article
published last week.
That may be a tough job for an agency historically regarded as the epitome of an unresponsive, dysfunctional
bureaucracy. The previous HUD Secretary, Alphonso Jackson, resigned in April 2008 after facing damning
allegations of wrongdoing on federal contracts. In fact, HUD's very process of annually allocating millions to
states and local areas has long been a farm for fraud, waste and abuse.
If Obama's economic plan is to work, America's new HUD chief will have to snap the department into shape--
fast.
The agency's greatest duty under the Obama plan will be to ensure that its Federal Housing Administration
(FHA) will stop the deluge of rotten mortgage loans.
The Federal Housing Administration insures single-family and multi-family home mortgages--a clearly essential
service after the collapse of America's sub-prime lending market. The FHA also will again have to become a
major refuge for those needing affordable housing loans.
But the department cannot hope to divert resources for FHA from related programs aiding community
development, public housing and other essentials.
"You've got to do both -- the old and the new," Nicolas Retsinas, a Clinton Administration FHA commissioner,
said to National Journal.
HUD also will have to vastly improve its information-technology systems.
"Technology modernization is something that needs to hit the forefront," Rep. Shelley Capito (R-WV), ranking
member of the House Financial Services Subcommittee on Housing and Community Opportunity, told National
Journal.
"With some [HUD] programs, you are still waiting for the paperwork to come in," added Rep. Capito.
Those are great tasks for any HUD secretary. But if his record really is as stellar as Obama claims, then
Donovan may be the right person to head an agency that's now crucial to this nation's economy.
Like what you're reading so far? Then why not order a full year (52 issues) of the The American Spark e-
newsletter for only $15? A major article covering an story not being told in the Corporate Press will be
delivered to your email every Monday morning for a full year, for less than 30 cents an issue. Order Now!
By Cliff Montgomery - Feb. 18th, 2009
For too long, the Department of Housing and Urban Development (HUD) has been little more than a second-
tier federal agency. But America's current economic meltdown, made particularly harsh thanks to a record
number of foreclosures, has made HUD an essential player in Obama's economic recovery plan.
"HUD's role has never been more important," proclaimed President Obama during a radio address on Dec.
13th. During the broadcast, Obama made a point of announcing his nominee for HUD secretary, Shaun
Donovan.
"As Commissioner of Housing Preservation and Development in New York City, Shaun has led the effort to
create the largest housing plan in the nation, helping hundreds of thousands of our citizens buy or rent their
homes," said Obama during the December broadcast.
"Prior to joining Mayor Bloomberg’s Administration, Shaun worked both in business, where he was responsible
for affordable housing investments, and at one of our nation’s top universities, where he researched and wrote
about housing issues," Obama continued.
"This appointment represents something of a homecoming for Shaun, who worked at HUD in the Clinton
Administration, leading an effort to help make housing affordable for nearly two million Americans. Trained as
an architect, Shaun understands housing down to how homes are designed, built, and wired," added Obama.
Donovan was sworn in as HUD secretary on January 26th, 2009. He has quite a bit of work to do.
The department's mission of providing fair, safe and affordable housing now necessarily is a key part of the
Obama Administration's recovery plan, which is the largest and most ambitious stimulus package since the
Great Depression.
"How housing is handled is going to be crucial to any hopes of an economic recovery," Jerry Howard, president-
CEO of the National Association of Home Builders, was quoted as saying in a National Journal article
published last week.
That may be a tough job for an agency historically regarded as the epitome of an unresponsive, dysfunctional
bureaucracy. The previous HUD Secretary, Alphonso Jackson, resigned in April 2008 after facing damning
allegations of wrongdoing on federal contracts. In fact, HUD's very process of annually allocating millions to
states and local areas has long been a farm for fraud, waste and abuse.
If Obama's economic plan is to work, America's new HUD chief will have to snap the department into shape--
fast.
The agency's greatest duty under the Obama plan will be to ensure that its Federal Housing Administration
(FHA) will stop the deluge of rotten mortgage loans.
The Federal Housing Administration insures single-family and multi-family home mortgages--a clearly essential
service after the collapse of America's sub-prime lending market. The FHA also will again have to become a
major refuge for those needing affordable housing loans.
But the department cannot hope to divert resources for FHA from related programs aiding community
development, public housing and other essentials.
"You've got to do both -- the old and the new," Nicolas Retsinas, a Clinton Administration FHA commissioner,
said to National Journal.
HUD also will have to vastly improve its information-technology systems.
"Technology modernization is something that needs to hit the forefront," Rep. Shelley Capito (R-WV), ranking
member of the House Financial Services Subcommittee on Housing and Community Opportunity, told National
Journal.
"With some [HUD] programs, you are still waiting for the paperwork to come in," added Rep. Capito.
Those are great tasks for any HUD secretary. But if his record really is as stellar as Obama claims, then
Donovan may be the right person to head an agency that's now crucial to this nation's economy.
Like what you're reading so far? Then why not order a full year (52 issues) of the The American Spark e-
newsletter for only $15? A major article covering an story not being told in the Corporate Press will be
delivered to your email every Monday morning for a full year, for less than 30 cents an issue. Order Now!
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