President-elect Barack Obama on Saturday announced his choice of New York City housing commissioner Shaun Donovan to head the Department of Housing and Urban Development.

Obama announced the pick during Saturday’s weekly Democratic radio address. He said the new HUD secretary would be essential to his plan to “dramatically increase the number of families who can stay in their homes.”

“With experience that stretches from the public sector to the private sector to academia, Shaun will bring to this important post fresh thinking, unencumbered by old ideology and outdated ideas,” Obama said.

“He understands that we need to move past the stale arguments that say low-income Americans shouldn’t even try to own a home or that our mortgage crisis is due solely to a few greedy lenders. He knows that we can put the dream of owning a home within reach for more families, so long as we’re making loans in the right way, and so long as those who buy a home are prepared for the responsibilities of homeownership.”

Donovan’s selection won praise from housing experts, who said he is held in high regard for his work in New York City.

“Shaun Donovan is brilliant choice for HUD,” said Sheila Crowley, president of the National Low Income Housing Coalition. “He is an expert on the full range of housing issues and has a proven track record of getting things done, And he enjoys high regard across the spectrum of housing interests, from low income housing and homeless advocates, public officials, developers, and financiers alike.”

An Experienced Hand

Donovan has served as New York City Commissioner of Housing Preservation and Development since 2004. He led the city’s $7.5 billion “New Housing Marketplace Plan” to build and preserve 165,000 units of affordable housing. He also put increased emphasis on energy efficiency in affordable housing units during his tenure.

The Bush administration’s outgoing HUD secretary, Steve Preston, offered congratulations and noted that his agency has worked closely with Donovan’s to improve housing in New York. “The mission of HUD has never been larger or more important than it is right now,” Preston said, promising to assure a smooth transition.

Democrats from both chambers praised Donovan’s nomination Saturday as a sign that the Obama administration would work to improve the availability and management of affordable housing at a time when a home mortgage crisis and a wave of foreclosures are forcing many to look to the government for help.

“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 Sen. Patty Murray , D-Wa., chairwoman of the Senate Transportation, Housing, and Urban Development 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 crises.”

New Yorkers also cited their firsthand experience observing what they said was a record of success for Donovan in revitalizing public housing in New York City.

“The appointment of Shaun Donovan as HUD secretary is another signal that the Obama administration’s definition of change is truly the change we need,” said Rep. Carolyn Maloney, D-N.Y., who represents parts of Manhattan and Queens. “Mr. Donovan’s experience in designing, developing and planning for affordable housing in New York City as the Commissioner of the City’s Department of Housing Preservation and Development will serve our nation well.”