The agency intends to put forth a balanced national housing policy inwhich affordable and public housing "is built, financed and managed"according to 21st Century standards, Donovan told the often-cheeringaudience.

With its formal introduction a few weeks off, Donovan stuck tobroad-bush strokes when describing the plan. The agency, as oneexample, wants to streamline and better coordinate policies "on abroad range of tenant issues," he said. It also wants to identify more sources of funding--both private sector and public--for its many initiatives. The public sources,given the fiscal environment, will not be enough to meet the publichousing finance needs, he acknowledged. "We need access to otherfunding streams--we need to attract capital from private sources aswell."

That said, the agency is pushing Congress hard for the money itpromised in earlier initiatives, namely the $1 billion NationalHousing Trust Fund, Donovan continued. "We are working [with the Democratic Congressional leaders] to ensure that the fund is capitalized this year," he said.

Internally, HUD is ramping up its funding, despite budget cutbacks. Ithas allocated a 50% increase in housing counseling to assisthomeowners struggling against foreclosure. This year, for the firsttime in a decade, HUD's operating fund for public housing, will befully funded, Donovan said. The agency has also increased by $200million its funds for homeless assistance.

"The federal government is back in the business of affordable housing," Donovan concluded. Other speakers at the event included House Financial Services ChairBarney Frank (D-MA), Senator Jeff Merkley (D-OR) and Director of theUS Department of the Treasury's Community Development FinancialInstitution Fund Donna Gambrell.

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Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.