Senate OKs Donovan for HUD, LaHood for DOT

President Obama's cabinet grew last week as the Senate confirmed Shaun Donovan as the new secretary of Housing and Urban Development, and Ray LaHood as head of the Department of Transportation.

Donovan and LaHood may end up working in tandem on some issues under the administration. Donovan, the 42-year-old former chairman of the New York City Housing Development Corp. and commissioner of the city's Department of Housing Preservation and Development, has said he would like to see low-income housing developments coupled with transportation projects, as well as an increase in the role of rental housing.

Democratic and Republican lawmakers praised Donovan's experience and said they want him to be at the forefront of helping to fix the housing crisis.

During his confirmation hearing before the Senate Banking Committee Jan. 13, Donovan did not say in any detail what changes he would make at the department, only that he will be more aggressive in fighting foreclosures and promoting affordable housing. The Senate confirmed him for the post late Thursday.

Housing advocates have lauded Obama's choice and are anticipating big ideas from him. In New York City, he was in charge of implementing Mayor Michael Bloomberg's $7.5 billion new housing marketplace plan to build or preserve 165,000 units for low- and moderate-income families, which could provide housing for up to 500,000 residents by 2013.

Bloomberg pointed out recently that, of more than 17,000 affordable home mortgages entered into through the city's housing plan, "we've had just five foreclosures."

LaHood, a Republican who did not seek re-election to his Illinois district's congressional seat last year, was also confirmed by the Senate late Thursday evening to head the DOT. He was sworn in Friday. As incoming secretary, LaHood will be responsible for pushing the White House agenda for transportation financing in the next reauthorization bill. The current law expires Sept. 30.

Early indications are that LaHood will focus on safety, according to Jeff Solsby, American Road and Transportation Builders Association spokesman. "That's one of our big issues, and that's one reason were calling for more investment," Solsby said.

LaHood also indicated openness to more private investment during his hearing, saying that the federal government could look to public-private partnerships and tolling to fund transportation infrastructure.

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