HUD Secretary Shaun Donovan

Wednesday, July 14, 2010

Shaun Donovan, Secretary of the Department of Housing and Urban Development, discusses private funding for public housing, the Obama Administrations Recovery Act, where we'll see recovery efforts in NYC, and what electric cars might have to do with it.


Shaun Donovan

Comments [10]

DAT from Nathan Straus Projects

Obama sold the Projects to the private
developers, the Republicans wet dream.

As soon as Obama is out of office, if not before,
they will find a way to throw everyone out.

Jul. 15 2010 01:07 AM
g.e.Taylor from Brooklyn Heights

Mr Donavan is just the current "pit boss" for one of the largest, and longest running, three-card-monte casinos ever established. Despite his glib assurances, the Obama Crime Family is no different than the Bush and Clinton Crime Families in that it continues to use public monies to enrich enterprises that private funds will not support.

Fannie and Freddie (wasn't the name "Fredo" in the movie?) did not issue mortgages to home buyers. It merely subsidized and guaranteed the profits of those who were issuing those all but fraudulent financial arrangements.

I thought New Yorkers were smarter.
But it looks like they think that they can keep track of the Queen of Spades.

Jul. 14 2010 11:39 AM
Harlem Resident from Harlem

What really should be discussed is the shoddy workmanship done by HPD. I live in a brand new building where the roof was never pitched correctly, the thoro seal was not done correctly and everything it rains we have water damage. The NY Times did an article months ago about new housing leaks but the buildings dept, elected officials and HPD are all non responsive to this problem. What should be done?

Jul. 14 2010 10:47 AM

Arrrrgh. Brian, this is the *second* time this week you've shown a complete inability to distinguish between the *Fannie and Freddie* and *the originators of the toxic loans.*

Mortgage loans originated or guaranteed by Fannie and Freddie are *not* the problem with those institutions--for the most part, those loans were written prudently. The problem is that Fannie and Freddie bought large amounts of securitized mortgage debt based on crappy subprime loans.

Moreover, the banks can pay off their bailout (TARP) money because they have access to the Fed's "discount window," which basically enables them to borrow money at 0% and then turn around and buy Federal bonds paying around 2%: essentially, free money. Fannie and Freddie, I believe, do not have such access and therefore do not have that option.

Mr. Donovan tried to explain some of this stuff, but I don't feel he did a very good job. In fact, he came across as pretty hopeless. My explanation above is also sketchy and inadequate, ---it's hard to condense a situation as complex as this into a single blog comment---but for God's sake, Brian, please make the effort to learn some more about the causes and structure of our current financial crisis. Right now listening to your segments on the topic just makes me wince.

Jul. 14 2010 10:40 AM
henrietta from Bklyn

Donovan was a disaster at NYC HPD....I am still trying to buy a house that is part of a city program. He and his office provide no oversight of the contractors and non-profits who "manage" these projects. How can things be any different in Washing?

Jul. 14 2010 10:33 AM
Chriss from Montalcir

This guy is GREAT!!

Obama should have had him out long ago.

BUT, it seems like his and Obama's answer to any criticism is: it could have been worse and it's what we inherited i.e. it's Bush's fault.

Jul. 14 2010 10:30 AM
CL from New York

Blah blah blah. More mealy-mouthed talk about the problem. Donovan comes off as a weak yes-man for the Obama administration. He is either incapable of understanding or afraid of admitting that there are large organic problems in the "housing problem." And his habit of beginning his answers with "Look" is condescending. He is an annoying lightweight who prefers to hide behind selective data.

Jul. 14 2010 10:29 AM
artista from greenpoint

the road to privatizing public housing (because that is what he is talking about) is the road to the destruction of public housing.
A Bloomberg Admin guy? what a surprise.
There is no space here to go into how in tough times, these external nongov funding sources are 'sadly' withdrawn and further privatization or even closure results.
Like the end of welfare under another Dem, it works in good times, fails in bad (safety net, anyone?).

As to the stimulus, I am on his (Obama's ) side.

Jul. 14 2010 10:28 AM
amalgam from Manhattan by day, NJ by night

Glad to hear that Donovan directly contradicts the myopic analysis of the economic and mortgage collapse vis-a-vis Fannie/Freddie, that John Fund spouted on yesterday's show.

There is no doubt that Fannie/Freddie (and even HUD under Clinton/Cuomo) pushed the idea of American-wide home ownership to those that shouldn't have entered into it, but that they were only following the over-heated mortgage market (bubble) that got wrapped up into derivatives and other speculation in the financial industry.

Jul. 14 2010 10:27 AM
brian from Brooklyn

Is there any coordination between HUD and the Dept of Transportation? How is the Administration addressing the need for WALKABLE communities, which are by there very nature more affordable?

Jul. 14 2010 10:21 AM

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