He made the announcement in weekly radio address.

"As commissioner of housing preservation and development in New York City, Shaun has led the effort to create the largest housing plan in the nation, helping hundreds of thousands of our citizens buy or rent their homes," Obama said.

He noted that the HUD is essential in the effort to address the mortgage crisis, which he said "not only shakes the foundation of our economy, but the foundation of the American Dream."

"Trained as an architect, Shaun understands housing down to how homes are designed, built, and wired," Obama said.

"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 home ownership," he added.

Born on January 24, 1966, in New York, Donovan has worked in business, academia and at the HUD during the Clinton administration.