People in the news

Shaun Donovan

Housing and Urban Development Secretary (since January 2009)

(HUD)

Why He Matters

Donovan is a busy man.

He has worked as an architect in New York City and Italy, run a million-dollar private sector organization, served as the head of the Federal Housing Administration (FHA), and as an assistant secretary of the Department of Housing and Urban Development (HUD) during the Clinton administration.

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Background

At a Glance

Career History: Commissioner, New York City Department of Housing Preservation and Development (2004 to 2009); director, Prudential Mortgage Capital Company's FHA lending and affordable housing initiatives (2002 to 2004); visiting scholar, New York University (2001 to 2002
Birthday: Jan. 24, 1966
Hometown: New York, N.Y.
Alma Mater: Harvard University, B.A. 1987; Harvard University, M.A., 1995; Harvard University, M.P.A., 1995

Spouse: Liza Gilbert
Email : N/A
Web site

Path to Power

Donovan was born in New York City on Jan. 24, 1966. As a boy, he had a passion for building model cars and running. He flirted with the idea of becoming a professional car designer. But once in college, he quickly settled on a career in structural engineering.

He received his undergraduate degree from Harvard University's engineering school in 1987. He then pursued a joint master's in public policy and architecture from Harvard, and received those degrees in 1995.

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The Issues

In the midst of the severe economic crisis, Obama would like Donovan to play a key role in stopping foreclosures and rebuilding efforts to expand homeownership. "In the end, expanding access to affordable housing isn't about just caring for the least fortunate among us and strengthening our middle class," Obama said during his talk. "It's about ending our housing mess."

Donovan will be tasked with helping FHA expand the number of refinanced mortgages it is offering to those who are in default. Though the Congressional Budget Office estimates HUD could help 400,000 families renegotiate their current loans, only 13,000 have been helped so far.

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Donovan will also be responsible for helping the FHA recover from its record losses from defaults on government-guaranteed mortgages. He will also be responsible for figuring out how to better fund state and city housing authorities - currently, cities are only getting 80 to 91 cents for every dollar they need.

Donovan is familiar with all sides in the housing issue; he has worked with landlords, developers, lenders and tenants, and understands the needs of each group. Donovan believes in developing innovative solutions that incorporate the public and private sector. In 2007, he told Time magazine "there's stagnation at the federal level, so we had to get creative."

He has worked to correct the notion that affordable housing is only for the poor. He has said the sub-prime lending crisis provides an ideal opportunity to better integrate affordable housing into neighborhoods. "I think there is an opportunity, given the sub-prime crisis," Donovan said at a June 2008 speech. "We have an opportunity to really reframe the housing challenges nationally."

Donovan responded quickly and effectively to the sub-prime crisis in New York City by developing a plan that helped owners renegotiate their mortgages. His home ownership plan kept foreclosures low; only five percent of property owners have lost their homes in New York City.

In a speech at New York University, Donovan outlined his five priorities for the Department. They include "remaking our mortgage system; dealing with the persistent rental-housing crisis that far too many low-income Americans face; beginning to use HUD and our housing policy as a force for broader sustainability within our economy and within our country; re-energizing efforts around fair housing; and fifth, allowing HUD to become a leader on research and evaluation."

He also pledged to work to develop more sustainable metropolitan regions and he called for more accountability of HUD.

Public Private Partnerships

As New York Housing secretary, Donovan has managed to bridge the divide between free-market advocates and liberal groups who want the government to provide homes to the working class.

His innovative approach called for "inclusionary zoning" that encourages developers to set aside a portion of their housing projects for lower-income residents by allowing them to build more densely (and thus make more money) if they do so.

Donovan has tapped a number of funding sources for his work. He has collected contributions from the city, a handful of major foundations, and financial institutions to create a $200 million fund that helps non-profit housing groups and small developers buy land in private sales. The fund is expected to preserve 30,000 moderate income apartments in the next decade.

"I'm in government because of the role of government in setting rules and working in partnership with the private sector," he told the New York Times. "On the other hand, there's no way you could ever get to a scale that can really affect the housing problems in this country without working with the market."

Section 8 Vouchers

Donovan has called for legislation that would expand which buildings can apply for Section 8 housing, which provides federal subsidies to low-income tenants. He has called on the federal government to standardize its allocations from year-to-year so that cities can plan. He is also supportive of allowing specific building projects to apply to be eligible for Section 8 vouchers.

Donovan also would like local governments to be able to perform non-judicial foreclosures.

Educating the Public

Donovan has developed several programs to provide legal and credit assistance to home buyers who may face predatory lending. He also created financial education programs for potential buyers.

"Prevention counseling, legal services and education can help keep families in their homes," he said at a speech in June 2008. "A home is far too valuable for people to lose."

The Network

Donovan is widely praised as one of the most innovative housing experts in the country, and he has several allies. Bloomberg (I) called Donovan "the best choice" For HUD secretary. Bloomberg and Donovan have worked together closely since Bloomberg's election in 2000. He was even considered a top contender for deputy mayor after Dan Doctoroff resigned.

Donovan is respected in Congress. One of his biggest allies is Sen. Chuck Schumer (D-N.Y.), who lobbied on Donovan's behalf for the HUD job. Schumer called Donovan "one of the most effective housing commissioners in New York City's history." Other public officials like Sen. Patty Murray (D-Wash.) and New York Attorney General Andrew Cuomo (D) have also praised the choice.