Obama appointed Shaun Donovan as Secretary Of Department Of Housing And Urban Development

Shaun Donovan is the latest in a series of picks by Barack Obama. He has been named Secretary of the Department of Housing and Urban Development.With one in 10 U.S. homeowners delinquent on mortgage payments or in foreclosure, Obama said New York City housing commissioner Shaun Donovan will bring "fresh thinking, unencumbered by old ideology and outdated ideas" at the Housing and Urban Development Department to help resolve the housing and economic crisis.

"We can't keep throwing money at the problem, hoping for a different result," Obama said during his weekend radio address. "We need to approach the old challenge of affordable housing with new energy, new ideas, and a new, efficient style of leadership. We need to understand that the old ways of looking at our cities just won't do."

Donovan, head of the New York's Housing Preservation and Development Department, is former Clinton administration HUD official with a national reputation for curtailing low-income foreclosures, developing affordable housing and managing the nation's largest housing plan.

If confirmed by the Senate, Donovan would become the nation's top housing official in the midst of the worst recession in decades. Falling home values and stricter lending standards have ensnared millions of U.S. households. More than 259,000 homes received a foreclosure-related notice in November, up 28 percent from a year earlier. The Federal Reserve is predicting that new foreclosures this year will reach 2.25 million, more than double pre-crisis levels.

Conrad Egan, president of the nonpartisan National Housing Conference, said Obama's selection of Donovan signals that he recognizes HUD can play a big role in the economic recovery.

"It really needs to be a seat at the Cabinet table that is the principle point where housing and community development issues are brought together and resolved successfully," Egan said. "HUD has been perceived as a second-tier participant in meeting that challenge."

Congressional Democrats, with support from Obama, have sought to use part of the $700 billion banking bailout to help homeowners facing foreclosure. The Bush administration has resisted those efforts.

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