"This is not a crisis of confidence in HUD," Donovan said. "This is a crisis of confidence in whether or not the federal government can make a difference in housing."

To remedy that, Donovan called for greater evaluation and measurement of HUD programs. He said it was essential for the agency to invest in research and accountability of its programs, adding that HUD's relationship with Congress was crucial, and that transparency was key to changing minds about the government's abilities. "We must hold ourselves to higher standards that are transparent and measured."

He called for partnerships with foundations and universities that develop new research measures and possibly serve as sources of funding that "revolutionize the way we measure and evaluate housing programs." For example, Donovan asked, "Do investments in housing lead to better education opportunities for children and eventual job outcomes?"

He added that it was generally not a positive act when a family takes a voucher, then uses it to leave an impoverished neighborhood for a "neighborhood of opportunity." The challenge, Donovan said, is "how we think about making impoverished neighborhoods into neighborhoods of opportunity." Of private and public relationships under HUD's umbrella, rooted in what he compared to the Hippocratic oath, Donovan said "we should be fostering relationships for innovation."

The conference, "A Crisis is a Terrible Thing to Waste: Transforming America's Housing Policy," was co-sponsored by the Rockefeller Foundation and the John D. and Catherine T. MacArthur Foundation. Also speaking were NYU president John Sexton and Rockefeller Foundation president Judith Rodin. Later, Furman Center co-director Ingrid Gould Ellen moderated an audience Q&A session with Donovan.