HUD Secretary Shaun Donovan

The Department of Housing and Urban Development announced today the allocation of $35 million for new the development of early childhood and adult education facilities. The federal funding will allow public housing authorities nationwide to construct, purchase or rehabilitate facilities for educational use, such as job training and childhood development programs. Local housing authorities must apply for funds by Jan. 14, 2011, and the maximum grant available is $5 million. TRD

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HUD Secretary Shaun Donovan

The U.S. Department of Housing and Urban Development unveiled a program today aimed at helping communities badly hit by the foreclosure crisis avoid sweeping vulture investors. The “National First Look Program” will offer select state and local governments a right of first refusal on foreclosed homes, before they’re made available to private buyers. The benefit of this, said HUD Secretary Shaun Donovan, is that it may help communities preserve buildings and put them to use based on the area’s specific needs. “Local communities will now get an exclusive option to buy foreclosed properties in targeted neighborhoods so they can turn the homes into affordable housing or, in some cases, tear them down,” Donovan said. This “will help rebuild neighborhoods that have been struggling with blight and declining home values due to foreclosures.” TRD

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Does the U.S. housing market need more propping up with a second installment of the homebuyer tax credit? Shaun Donovan, secretary of the Department of Housing and Urban Development, isn’t saying yes, but he isn’t saying no, either. According to CNBC’s Diana Olick, there’s a push amongst politicians, particularly in Florida, where the housing market has really gotten pummeled, to recreate the spring’s surge in home sales that was largely attributed to the federal government-supplied boost. While some would argue that the housing market needs to correct itself without an artificial stimulus in order to recover in the long term, Olick says another homebuyer tax credit could clear out some excess inventory quickly. Still, the official word from HUD is that “there are no discussions underway to revive the credit.” [CNBC]

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Does the U.S. housing market need more propping up with a second installment of the homebuyer tax credit? Shaun Donovan, secretary of the Department of Housing and Urban Development, isn’t saying yes, but he isn’t saying no, either. According to CNBC’s Diana Olick, there’s a push amongst politicians, particularly in Florida, where the housing market has really gotten pummeled, to recreate the spring’s surge in home sales that was largely attributed to the federal government-supplied boost. While some would argue that the housing market needs to correct itself without an artificial stimulus in order to recover in the long term, Olick says another homebuyer tax credit could clear out some excess inventory quickly. Still, the official word from HUD is that “there are no discussions underway to revive the credit.” [CNBC]

[more]

Does the U.S. housing market need more propping up with a second installment of the homebuyer tax credit? Shaun Donovan, secretary of the Department of Housing and Urban Development, isn’t saying yes, but he isn’t saying no, either. According to CNBC’s Diana Olick, there’s a push amongst politicians, particularly in Florida, where the housing market has really gotten pummeled, to recreate the spring’s surge in home sales that was largely attributed to the federal government-supplied boost. While some would argue that the housing market needs to correct itself without an artificial stimulus in order to recover in the long term, Olick says another homebuyer tax credit could clear out some excess inventory quickly. Still, the official word from HUD is that “there are no discussions underway to revive the credit.” [CNBC]

[more]

Fannie Mae and Freddie Mac — the government-owned mortgage giants — may see new owners soon, according to the New York Post, if a co-op transition plan is approved at today’s housing finance summit in Washington, D.C. Under the plan, the entities would become co-ops owned by lenders Wells Fargo, Citigroup, JPMorgan Chase and Bank of America. Proponents of the plan say that it would relieve taxpayers of a $150 billion burden, which has caused pains in the post-boom era. This plan is part of a larger lending reform proposal package to be pitched today during a conference that includes Treasury Secretary Timothy Geithner and Housing and Urban Development Secretary Shaun Donovan. [Post]

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Armed with $350 million in new financing, the New York City Housing Authority will start renovation work on 20,000 apartments in 21 developments within weeks, the agency is expected to announce today. NYCHA is getting $100 million in federal stimulus funds, $210 million from bond sales and $40 million from the state in what Department of Housing and Urban Development Secretary Shaun Donovan is calling the “most signification preservation action in the history of public housing.” The new funds — plus an additional $65 million per year — will be announced at the Rutgers Houses on the Lower East Side today and in an unprecedented action, will go towards developments built by the city and state. “It’s not a one-time appropriation — it’s a continuing commitment,” said Senator Chuck Schumer. “It’s one of the most important things Washington can do for New York City.” [NYDN]

HUD Secretary Shaun Donovan

From the March issue: Shaun Donovan is dealing with the worst housing crisis in generations and is at the center of the fight to staunch a historic flood of foreclosures. Being the nation’s chief housing czar might sound stressful, but for the 44-year-old policy wonk it’s a dream job. In an exclusive interview with The Real Deal, Donovan, the city’s former housing commissioner and now an Obama cabinet member, talked about life in Washington, from HUD’s new focus on cities to Ping-Pong with the president.  [more]

When Secretary of Housing and Urban Development Shaun Donovan appeared before the House Financial Services Committee to propose risk-reducing changes at the Federal Housing Administration, he made sure to note that encouraging the return of private investment in the mortgage market was still a priority, CNBC’s Diana Olick reported. Donovan proposed raising the minimum Fair Isaac Corporation, or FICO, score for new FHA borrowers, as well as the upfront cash and annual insurance premiums that risky borrowers would need to pay. He also proposed protecting the FHA against lenders who commit fraud or misrepresent borrower qualifications.