The New York Times story about Shaun Donovan's having been chosen by Obama to head HUD veritably glows. My natural skepticism of anyone at the head of NYC's HPD (Housing Preservation and Development Agency), after several years of active involvement in low income housing preservation there, (I left the City before Donovan came on the scene) led me to ask for a view from a less lofty position. I called on thoughtful friends with day-to-day practical knowledge of the issues and people involved there to enlighten me. What I learned is "on the street" kind of info that raises more questions than answers, but it does point to things to watch for:
Donovan "grew up" at HUD so is thought to know more about its problems than most. HPD gossips have said for years that his life plan was to run HUD -- if so he's probably been thinking about how to fix it for a long time. It may be that no one except former/current HUD employees know better how the organization works and what changes are needed to solve HUD's significant institutional problems. Donovan worked on the FHA side which should help during any congressional hearings that focus on the mortgage crisis.
Donovan is said to be passionate about housing the poor--a vocal advocate for creating and sustaining affordable housing. In this regard, his appointment surprises and delights many housing advocates. Generally, however, they are not sure his ideas for promoting affordable housing are particularly effective. On the other hand, HPD may not be a good indicator since NYC is a specialty market and Bloomberg's Deputy Mayors make all the decisions, leaving little power in the hands of his agency heads. Donovan has been seen as a weak voice, but that may be outside his control.
Many of the old guard at HPD were filled with disdain when he took off time to campaign for BO in October 2008. They saw it as last minute pandering for a post at HUD. Others say, "More power to him if this was the case, and perhaps he was a passionate supporter of Obama all along." He is known to be extremely ambitious and apparently is wealthy; when he first joined HPD, he paid for his own publicist (he may still do so).
He has pushed out almost all the old guard (i.e. people I knew from my days in the community) and brought on a new breed not seen to have any obvious passion for HPD's mission. About three weeks ago, he unceremoniously fired John Warren, HPD's First Deputy Commissioner. There is no publicly known reason for this firing, and Warren, a long-time HPD decision-maker was in my time, and has since been, seen by activists as extraordinarily competent; this gives me a little cause for concern.
Donovan is credited with pushing an inclusionary housing incentive bonus to create affordable housing in gentrifying neighborhoods in NYC. But most say this idea is more properly credited to Brad Lander (currently at the Pratt Institute and a City Council candidate for 2010). As well, the bonus only works in really hot markets -- alas, not so effective these days. Some think communities have been duped into accepting an unworkable mechanism, permitting higher density than they might otherwise wish for their neighborhoods. Is this Donovan's fault? I don't know.
He recently embarked on a public fight with NYC's OMB to press for a larger housing budget. He has also promoted projects in low income areas considered too risky by OMB (NY Times covered this story). Was this fight a cynical move on his part? A number of people were scandalized that he chose to publicize his quarrel. Was he making a point which he had no intention to press? I don't know that either.
Time will tell whether Shaun Donovan is effective at housing development or merely at self-promotion.