with regard to both hud's current programs, as well as a dramatic new proposals contained in the hud 2011 budget request. i believe a number of your hud policy and reform initiatives are bold and thoughtful, but i'm very concerned about the cost of these initiatives in both the 2011 budget, as well as the potential huge cost in the out years. for the hud budget, this is a particular concern, since we recently received word, as the chair has noted, that there will be a loss of some $4 billion in fha receipts, the $4 billion hit will make fundingle of the hud initiatives even more difficult in 2011 and possibly limit the funding for this subcommittee's other priorities like transportation and frumt project proimt projects. i've long warned about the fha and the potential consequences to the budget of the department, the appropriations available for this committee. and the impocket on our national economy. we need to be asking tough questions. like where's the money for new programs going to come from? the president is serious about promising fiscal restraint. he has to quit treating ta

but i dealt with hud programs for a simple reason. because the engine that drives capital investment at the scale needed is a reliable long-term market-based stream of federal rental assistance. no other mechanism has ever proven as possible of unlocking private and public resource toss meet the capital needs of affordable housing. that said, the status quo is no longer an option. with the public housing program that has unmet capital needs upwards of $20 billion, now is the moment to permanently reverse the long-term decline in the nation's public housing portfolio and address the physical needs of an aging assisted stock. this initiative is anchored by four guiding principles. first, that the complexity of hud's programs is part of the problem and we must streamline and simplify them so they are governed by a coherent set of rules and regulations that better aligns with other federal, state, local and private sector financing streams. second, the key to meeting the long-term capital needs of hud's public and assisted housing lies in

hud and various federal loan programs have a piece of that.put people into temporary housing, but we are not working at what the long-term housing solutions at that time. you end up with people who are still in temporary housing well past the point at which we would want them to be. in response, when in recovery, we have to work as a team. the stafford act is not the only tool. we need to bring all lot more of the federal government together so that local and state governments are facing challenges -- when they are facing those challenges, they will not have to find programs that have to help them. host: we recorded this interview as the spring is under way. can you tell us about the spring flood season? how bad is it going to be? guest: some of the red river areas will not be quite as bad. they did a very serious flood fight, so they minimize it. we have a lot of snowpack and we're still getting a lot of rain across the region. we are having more rural-type flooding. we're watching the mississippi, the red river, as many had crested or cme in

hud secretary shaun donovan is scheduled to testify. watch it live beginning at 9:30 a.m. eastern on c-span 3 and c- span.org. >> obama and his socialistic ideas, deciding salaries, this is a life lesson in progress right now for conservatives. >> sunday, the founder and president of the booth policy institute. sunday night on "q&a." >> kathleen sebelius testified yesterday for a budget for the health and human services department. increased funding for the food and drug administration and other topics. this is a little less than an hour. >> the subcommittee will come to order. madam secretary, welcome back. i want to start by commending you for the outstanding work you are doing to help enact health- care reform. we can see the finish line. it will be tempting for senators on both sides to want to debate the pros and cons of health reform with you today but i would urge the subcommittee members to keep their focus on the subject of our hearing, which is the budget for the 2011 budget for health and human services. the president's budget hold the line on non security rel

and howard glaser, farmer counselor to the hud secretary, president clinton. you're going to come back in the next segment. i just want a quick tease. is the bottom in housing about to crack lower? howard, you first. >> critical and dangerous spring for the housing market. we've got the withdrawal of mbs from the fed, the housing tax credit expiring, and we have 3 to 4 million homes and shadow inventory. we have a problem ahead if we're not careful. >> all right. so steve meister, do you agree with that? is the bottom going to crack lower? it's going to crack lower, larry. unless the democrats have figured out a way to repeal the law of supply and demand, we're going to go lower. there is a lot of mortgage foreclosure inventory, shadow inventory, coming on. and we are going to have to see lower prices in order to deal with that increased inventory, no question. >> gentlemen, stay right where you are, please. when we come back, i want to pursue this. i want to ask, with all the federal assistance to housing, why isn't the market stronger? much more with our gue

. >> host: he went on not only to be governor but hud secretary for president nixon. and you detail how he was such a saving voice in terms of american motors, the grumman. [laughter] you are not too proud to have a gremlin in your driveway youth saw people driving big fancy cars but it made him rich and he was very successful. >> guest: when he came into american motors, the company had selected him some years before as the vice president. but the chief executive officer was george mason. when it was formed with the merger of nash, george mason shortly thereafter passed away and the board elected my father to become president the stock went down dramatically think it dropped to about $5.50 per share and a couple years it was trading at over $90 per share. i am pretty proud of the job that he did he could turn the company around and short the financial base and get out the products people wanted. that allowed him too obviously save a lot of jobs and create a successful enterprise but i am afraid the rambler that he to be and is gone but the jeep is still around it is

. >> host: he went on line only to become the governor but the hud president for nixon. he was a saving force for american voters. the gremlin plays a big role in your book. you were not too proud to have a gremlin in george fifer. people were driving fancy cars and he made them rich and was successful. >> guest: he was very successful. when he came the company selected him some years before as the vice president but the chief executive officer was well known and respected, his name was george mason. when american motors was formed with the merger of nash and old names, george mason shortly thereafter passed away and the board elected my father to become the new president of the company and the stock went down dramatically when that happened and i think it dropped to about $5.50 a share and a couple of years later it was trading over $90 a share, so i'm pretty proud of the job that my dad did, he was able to help turn the company around, shore up its financial base and did the product sells people wanted and that allowed him to obviously saved a lot of jobs and create a

i had this debate with aç sectr of hud. i wouldç support reducing the section 8 program so that no one could be on a section 8 rental vouchers for more than five years. i said can you arrange for them not to be poor for more than five years? if you can get them not to be poor, then i will agree. he said, "what is your objection?" i said, "if you cut people off after five years, where will they live?" he said, "we will help them become homeowners." that was the damaging idea. rental is important. home ownership is sufficiently important to be treated more seriously than we have treated it. we have put them into those homes to quickly and too easily. there was the point that was documented recently, relevant to the group that is here. racial discrimination continues. i think i am fairly sensitive on the subject of race. but i was reminded recently how living day-to-day is different than just looking at it. i was making a point i have made before. in the security minded world, one of the things you get our trunks sales. -- ar

>> i'll have to get back to you with that. >> taipei for hud certified counselor.some of the banks pay for the counseling. i don't know the program, neighbor works of course is funded by this congress. they found a lot of the organizations. >> there are other outside sources to? they want to the. under the avenue e. seek required, whenever a person goes in for a modification, is supposed to be informed of the availability of counseling. the problem is in a survey which is a, the mr. shopping of 100 services, we found out that 80% are not told about it. >> my staff informs me that i'd pays for the counseling. >> all right. mr. cao very? >> my recollection is would probably appropriated 4,500,000,000 over this course of action for counseling. so a significant amount of money out there and despite the characterization of my testimony saying do nothing, my testimony suggests that one of the things we do need to do is connect counseling to the labor market that i talk to my testimony that mass layoffs have very large effects, disproportionate effects on housing market b

some of it goes to justice and some of it goes to hud and would be important to line up the rulemaking with the enforcement, and then the supervision depends on what the institution is. and as tom said, we've been taking the supervisory part of it as it relates to the banks, and we've been very diligent about that. it's been -- those non-banks. i think it's going to have to be a good definition of -- we are going to have to figure out who is the appropriate supervisor for those institutions, and it has to be consistent across the across the board. >> i would agree with my colleagues. i think no matter how far brought the reach of rule-writing, without regularly scheduled examination by an agency with accompanying enforcement power you will have an uneven playing field. >> there's a lot of questions about regulation, and i know you will say i have people to do that. but the bottom line is if in fact examiners of being overzealous as those in this room believe, and if they are coming in and because they are concerned about economic conditions now doing things they haven't done in the pas

i chair the transportation and hud subcommittee of appropriation. and i strongly agree with that premise. in fiscal 10, you propose an infrastructure bank which was $5 billion, but i don't remember if there was any legislation actually proposed to actually create that infrastructure bank. we did create, however the high-speed inner city passenger rail program and tiger grant program with moneys that could arguably come from that but only in transportation. in fiscal '11, you proposed the infrastructure fund somewhat like a bank, i guess, and again, i see no legislation and again, don't know whether it's narrowly transportation or something larger. now, it seems clear to me that we need an investment level that is at least in order of magnitude greater than the $5 billion in the one year or the $4 billion in the second year in order to zeal with the infrastructure needs across a broad range of areas. and i'm just curious to know whether you have any intention in this session of proposing a broad based kind of a fund and bank, much broad er than this,

we have met on this with people from hud.e trying to figure out a way to deal with that accounting issue. there is a group of people who are talking about trying to do a shared equity situation to get the modifications down. if that happens, then the second lienholders would have to be given a piece of any equity appreciation. it is accounting. i have written to the four big banks that hold the second liens. i have said we cannot get this resolved -- what can we do that will help you? that is where we are. i have time for one more question. >> [inaudible] the problem -- >> that will not happen. >> the main thing is we need them to stay consistent. right now, our problem in community is that the only available loan is fha. we have been there before. >> we are not going to change -- the status quo is going to remain until we know what is going to replace it. we have the fha. fannie mae and freddie mac are no longer private corporations but a public utility that is being used to help finance housing. what we will start with on t

i had this debate with a sector of hud. i was asked if i would support reducing the section 8 program so that no one could be on a section 8 rental vouchers for more than five years. i said can you arrange for them not to be poor for more than five years? if you can get them not to be poor, then i will agree. he said, "what is your objection?" i said, "if you cut people off after five years, where will they live?" he said, "we will help them become homeowners." that was the damaging idea. rental is important. home ownership is sufficiently important to be treated more seriously than we have treated it. we have put them into those homes to quickly and too easily. there was the point that was documented recently, relevant to the group that is here. racial discrimination continues. i think i am fairly sensitive on the subject of race. but i was reminded recently how living day-to-day is different than just looking at it. i was making a point i have made before. in the security minded world, one of the things you get our trunks

. >> one thing i'm concerned about, and it has to do with hud, because they're working to change the homeless definition, and it really does depend on what the education department says is the number of homeless. and that would really be helpful, if you have that number. >> i will check that data and get back to you. >> thank you. and i yield back. >> i yield to mr. -- we have three minutes left. if you to take your three minutes now, you're welcome to do that. >> i'll gladly take it and come back for a second round. thank you, very much. >> you'll take your three minutes now. and i think that will be it. but go ahead. >> i want to ask two questions, mr. secretary. how do you propose to support high-need schools, who oftentimes call drop out factories in both urban and rural areas through the reauthorization of esea? and in that response, please include how the blueprint for reform improves middle schools so that we can stop the high dropout which occurs in grade 7, 8 and 9? >> on the middle school piece, all of the reforms we're talking about, better teachers and leaders, well-round

hud has a piece of that and various programs. if you do not tie those together, we put people into temporary housing solutions but we are not lurk -- looking at the long term solutions. you end up with people who will be in temporary housing units will pass the point we would like to have those programs run. in a recovery, we have to work as a team and the stafford act is one of the tools. that is not the only tool. we need to bring the federal government together so when state and local governments are facing the problems of disaster as they do not set for web pages. host: "newsmakers"program is tomorrow at 10:00. if you miss it, you can catch it again at 6:00. back to our calls about help for homeowners who are under water. branson, mich., are democrats line, go ahead caller: i am in the building trade. 60 years ago when i refinanced my house, not one bank would give you any loan other than a three-year arm. i got into one that was bad. i got out of that and got into an fha loan which was worse. it was because the interest rate

the hud secretary is scheduled to testify. you can watch a live on c-span3 and on c-span.org. >> sunday, your chance to talk to karl rove, live. starting at 10:00 a.m. eastern, the current fox news contributor will take your phone calls, e- mails, and tweets. former defense secretary bill cohen and his wife janet on race relations in america. all this began, live coverage of this year's tucson festival of books. find the schedule at booktv.org. >> obama and his socialistic ideas -- this is a life lesson in progress right now for conservatives. >> on sunday, founder and president of the clear blue us policy institute on her work to promote women in leadership roles. >> "washington journal continues. host: i want to tell you about him before we get into the discussion about policy in process on health care. in the 1993 was part of a working group for president clinton's task group on health care reform. as you can imagine, he has been very much involved in the debate. guest: thank you. host: this morning we have been all over th

senator jacob hud and representative josh primary movers of the 14th amendment, because you have to go, those are the framers in what we're talk abouting in this context, not john adams and james madison. that was the original. now we're talking about the 14th amendment. senator howard and bingham. they weren't talking about, now we'll just incorporate the 2ened, 4th amendment. what they said is that we will now give all individuals or persons or citizens depending on which clause you are talking about equal protection of the law, due process of the law before we can describe them. and privileged immunities. now that means that privileges or immunities based on the understanding of that term in 1868 and remember if you are going to try to understand what the public meaning that have term is, what the text and structure and history of the 14th amendment leads you to, you have to do that with respect of the radification of the amendment. 186, not 1787 or 1791 or what have you. and what that meant then based on the speechers and reports from that time, building on the decision in core fie

that developer took hundreds of millions of dollars from hud and i am sure he had his hands in freddie mac. the justice the problem brought a case against him to try to recover some of the money and none of it was ever recovered. i think he finally settled for a $10,000 fine after having undermine the economy. he was taking real-estate that the taxpayer already owned through an abstract corp. and then reselling it back as open space to the taxpayers. çhundreds of millions of dollas were stolen. and then the justice department just through the whole case out. it was ok because he was one of bush's contributors, he contributed to bush, john mccain, senator -- the list goes on. host: question for our guests? caller: i think there has been complicity in the media not looking at these cases closer. they act like fannie mae and freddie mac are these -- like these institutions off somewhere on some desert island that just happen to do this by themselves. no, they were in on it just like everybody else in the bush administration and the clinton administration. it is akin to silverado savings

she was hud secretary if memory serves and when i covered her, u.s. trade representative. and then to her left is fred birkson the president of the peterson institution ol international economics and former assistant secretary of the treasury and the carter administration. so david, if you would start. >> sure. thank you, carl. first, as president and ceo i want to say we were very pleased to be the primary sponsor of the strengthening america's. it was for a call of greatness issued in january of 2008. it's important that you understand that this is a non-partisan effort. we have republicans, democrats and independents. and in fact, a conscious decision was made to have a republican, democrat and independent co-chair. because we wanted to come up with non-partisan solution that is hopefully could achieve broad based, bipartisan support and i was pleased to serve. leon pi net that was going to be a co-chair but he was called to the cia and roy step in ably to fill his shoes. i think the title of the report says a lot. prosperity or decline, breaking washington's deadlock t

also attach a signed hud-1 statement, and you cannot file electronically.t year folks could file electronically but some folks got their money before the claim was certified as legitimate. this time you can't file it electronical electronically. >> the three-year rule only means -- you could have been a homeowner for 20 years and merely rented for another three and then you would requalify. you would get the full benefit, right? >> right. for the $8,000? >> right. >> right. you have -- exactly. can't have owned a home for more than three years. >> thank you. >>> despite being sick dennis hopper showed up for the dedication of his hollywood walk of fame star. hopper is battling prostate cancer and this may be the last time fans see him alive. his acting career has spanned almost six decades. dennis hopper twice nominated for an oscar is 73. he's going -- undergoing radical chemotherapy for prostate cancer. i don't know if you can see it. jack nicholson is in the crowd. half of hollywood showed up for this to say good-bye and thank you for the great career of