By Karoun Demirjian, CQ Staff

The Senate Banking, Housing and Urban Affairs Committee will meet Tuesday morning to consider the nomination of New York City Housing Commissioner Shaun Donovan to head the Department of Housing and Urban Development.

Donovan’s résumé has earned him a stream of accolades from lawmakers since President-elect Barack Obama announced his nomination in December. He has led New York Mayor Michael Bloomberg’s $7.5 billion initiative to preserve and build affordable housing units for some 500,000 city residents since 2004, a job he took after serving as the Clinton administration’s deputy assistant secretary for multifamily housing at HUD and running Federal Housing Administration lending for Prudential Mortgage Capital Co.

Senators are expected to support his appointment without much dissent. But Donovan will likely face pointed questions on his plans and ideas for the department, on subjects such as foreclosure prevention and maintaining a ready supply of low-income housing units for families in need.

With subprime mortgages still at the heart of the current financial meltdown, finding fixes for the housing crisis — including restoring home values and improving homeowners’ and homebuyers’ access to credit — is an issue of paramount concern.

The hearing comes as Democrats are pushing legislation to force the Treasury Department to spend a portion of last October’s $700 billion stimulus package on direct aid to homeowners, in an effort to stem the rampant pace of foreclosure through reducing homeowners’ mortgage debts.

HUD, which oversees the FHA’s lending programs to low-income borrowers, has operated largely at the periphery of efforts to steady the swift downward spiral that focused most acutely on lenders such as Fannie Mae and Freddie Mac.

But as lawmakers contemplate an increased role for government in setting housing regulations, Democrats are hopeful that Donovan, who was a housing policy adviser to the Obama campaign, will breathe new life into a department that they saw under the Bush administration as sluggish in responding to an unraveling system.

“After eight years of mismanagement, cronyism and relentless efforts to shortchange our housing priorities, America needs a housing secretary that is truly committed to HUD’s mission and to running the agency with transparency and accountability,” said Democrat Patty Murray of Washington, chairwoman of the Senate Transportation-HUD Appropriations Subcommittee.

“Mr. Donovan’s experience should return to HUD a rightful seat at the table with the Treasury Department and other agencies that have been seeking to address the nation’s housing crisis.”

The hearing is scheduled for 10 a.m. Tuesday in 538 Dirksen.