Shaun Donovan Picked as Obama's HUD Chief

Shaun Donovan has a reputation for developing affordable housing. Donovan, 42, worked in HUD as acting federal housing commissioner and, earlier, as deputy assistant secretary for multifamily housing, during the Clinton administration.

Obama made the announcement during his Saturday radio address, in which he added:

"We can't keep throwing money at the problem, hoping for a different result. 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."

In response to Shaun Donovan's appointment, Sen. Charles Schumer (D-NY) said:

“Shaun Donovan has been one of the most effective housing commissioners in New York City’s history. At this time, with the housing crisis raging, he is exactly the kind of person we need as HUD secretary.”

Additionally, according to Politico, Donovan saw the subprime lending crisis coming, as early as 2004.

To my surprise, Donovan brushed aside my questions about the city's initiatives and began taking at length about the coming "flood of foreclosures" he anticipated among highly leveraged apartment buildings purchased by recent immigrants -- and a looming subprime crisis for one- and two-family homeowners in up-and-coming neighborhoods in southeast Queens and central Brooklyn.

At the time, obviously not in any position to affect things nationally. Now, things will be different.