By Eugene T. Lowe
January 31, 2011

Housing and Urban Development (HUD) Secretary Shaun Donovan gave a detailed account of the progress made by the Obama Administration in response to the nation's economic woes over the past couple of years, speaking at the Mayors and Business Leaders Plenary Lunch that closed the 79th Winter Meeting of the Conference of Mayors on January 21. Though not still "out of the woods … [with an] unemployment rate… unacceptably high," the Secretary said important initiatives have been taken, such as the bipartisan tax package that, "…independent experts now expect another 1.5 million jobs or more will be created in 2011 — lifting our economy and our communities alike."

Many HUD programs have also contributed to the economic recovery. Donovan said that, "HUD Recovery programs created more than 27, 000 jobs in the third quarter alone." Programs like the Neighborhood Stabilization Program (NSP), HOME and the Community Development Block Grant (CDBG) program have been important tools in repairing our economy. Mayors, he said, are to be applauded "for helping HUD obligate 100 percent of our Recovery funds a full month ahead of schedule."

Noting the mayors' concern about the funding of CDBG in the FY12 budget that will be released the week of February 14, the Secretary said, "I hear — and President Obama hears you — loud and clear." He said that, "The administration is serious about reining in unnecessary spending—and you'll see that in the President's budget. Tough decisions will be made." The Secretary added, however, that the administration is "committed to making the strategic investments we need to ensure the economic future of this country. And CDBG is an important catalyst for economic growth…" Donovan said that the "results from the Recovery Act show that CDBG creates twice as many jobs per dollar as other Recovery Act programs." He challenged the mayors and requested their help "to keep reporting data we need—and improving the data you collect—to make the case that CDBG creates jobs."

Donovan encouraged the mayors to make their "voices heard" on other HUD programs, which provide "safe, decent and affordable housing to 4.5 million people — more than half of whom are elderly and disabled." He stressed the importance of funding new HUD initiatives that support the work of mayors and "prepare your communities and economies for the future." Two new Sustainable Communities grant programs and the Community Challenge grant program (a HUD and DOT program) "represent the most significant federal investment in planning in generations," the Secretary said.

Transforming rental assistance is another important area for mayors to support. He described HUD's Transforming Rental Assistance proposal that would "create properties and homes with a mix of incomes and uses — leveraging private and other public sector funds — including Low-Income Housing Tax Credits and the CDBG and HOME funds you control—and encouraging the kind of market discipline in public housing we've seen elsewhere in the affordable housing sector."

On the homelessness issue, Donovan encouraged the mayors to participate in the one-night count of homeless persons and families in their cities. He said that on January 26, he would join thousands of volunteers in nearly 4,000 cities and counties to conduct the one-night count. He said, "This ‘point in time' count is essential to having the clearest understanding possible of the scope and breadth of homelessness and to measuring our progress toward ending it."

Chair Conference of Mayors Community Development and Housing Committee Newton (MA) Mayor Setti Warren introduced Donovan. Before introducing the Secretary, Warren urged all mayors to hold press conferences with their congressional representatives in their cities when the federal budget is released highlighting what they are doing with CDBG. The goal of the CDBG local press events, Warren said "…is to build congressional support for funding the program in FY12 at $4 billion."