HUD Secretary Donovan. Photo from HUD.

Saying that, “everyone wants to be like Portland,” Housing Secretary Shaun Donovan came to this city to announce he’s creating a new office of Sustainable Housing and Communities.

Donovan told a group at Portland State University that this office will lead Housing and Urban Development’s new emphasis on building stronger and more sustainable communities across the country.

He also says that sustainability – including more energy efficient homes and apartments, as well as access to mass transit – needs to be made more affordable.

Video: New Types Of Mortgages To Help People Buy Sustainable Homes

Donovan says one way HUD can help is by developing new types of financing that look at how much we spend on transportation. People who live closer to mass transit, he says, save money on transportation and can afford to spend more on a home. Same thing is true if the house is made energy efficient. Because HUD writes about a third of the home mortgages in the country, Donovan says the department can develop new rules that allow people buying these homes to get larger mortgages. Once HUD proves it works, Donovan predicts the private mortgage industry will follow. (See the above video for more information.)

To help other communities follow Portland’s example, Donovan says HUD’s budget includes $100 million for regional planning projects and $40 million for planning at the local level.