U.S. Housing Secretary Addresses Middlesex Chamber

The looming threat of a federal government shutdown hit close to home Friday when participants at a Middlesex County Chamber of Commerce meeting learned their guest speaker, U.S. Housing and Urban Development Secretary Shaun Donovan, had to remain in Washington D.C. because of the possible shutdown.

But the more than 200 people who attended the affordable housing breakfast meeting were still treated to a personalized videotaped message from Donovan, who spoke about the importance of affordable housing and its impact on jobs and business growth. Donovan also called into the meeting after the video, spoke to the audience directly, and then took questions from them.

Donovan had to stay in Washington because President Obama called a meeting of his cabinet Thursday morning, chamber officials said.

“I guess that was a little bit more pressing than this,” Larry McHugh, the chamber’s president, told the gathering. “We were all looking forward to having Secretary Donovan here, but I think we all understand.”

Donovan, in his telephone address to the audience, said he was disappointed that he was stuck in Washington D.C., listening to political arguments about the budget, than in Connecticut, talking about solutions for affordable housing.

“I’d much rather be there, talking about the future, than talking about this stale political debate. It’s very frustrating.”

He told the chamber gathering that expanding housing opportunities for all, and creating more avenues for affordable housing, is crucial to creating new jobs and rebuilding the economy. Making sure that all Americans have safe and decent homes, he said, will make the country stronger and more competitive internationally.

“As much as America needs to win the race in education it also needs to work on improving … neighborhoods.”

Part of that effort, he said, should include not just new housing, but revitalizing existing public housing stock and making public transportation more accessible to affordable housing areas. Doing so, he said, will provide a ready and mobile workforce for businesses.

The federal government, he said, is doing its part by increasing rental assistance in the proposed 2012 budget, by fighting to save other affordable housing programs and by seeking permanent sources of funding for affordable housing.

“With these initiatives I’m confident we can not only make progress … we can make history.”

Several audience members were able to ask question of the housing secretary during a question and answer session.

One chamber official asked whether the federal government could help ease the difficult regulatory process for building smaller housing projects, which have the same rules imposed on them as large ones.

Donovan agreed that the federal government needs to find a way to help ease the often complicated burden of establishing a small affordable housing project.

“I’m aware of the brain damage that can occur from trying to put together an affordable housing program. We have to find ways to simplify the process.”

One former public housing resident asked Donovan about the possibility of establishing a trust fund for affordable housing. The housing secretary agreed that a funding source  independent of “the vagaries of budgets” would make it easier to finance housing projects.

Donovan also said President Obama is working hard to preserve funding for affordable housing and has made housing for low and moderate income families a priority.

“This is a president who understands the importance of public housing.”