Former Department of Housing and Urban Development Sec. Henry Cisneros is back in housing.

The former Clinton cabinet member has formed a joint venture with Kaufman & Broad Corp., Los Angeles, one of the nation's largest home builders, to develop large scale residential communities in major cities throughout the nation.

As part of the "smart growth" strategy that has become a national priority, American CityVista will target areas ripe for development where new construction has not occurred in recent years.

"The demand for homes in central neighborhoods is at an all-time high," Cisneros said in announcing American CityVista with K&B Chairman Bruce Karatz.

Noting that major home builders tend to overlook plsces where the new venture intends to focus, Karatz said he shares Cisneros's vision. "And together," he added, "we have the resources and expertise to make vital new neighborhoods a reality."

K&B, which built nearly 22,500 houses last year under various brands, "wants to be part of the solution to the challenges of growth," Karatz said.

The major of San Antonia from 1981 to 1989, Cisneros was confirmed to run HUD in January 1993.

He quickly became one of the country's most prominent Hispanics. But when he resigned four years later, he left under a cloud after an independent federal counsel charged him with 18 felony counts of lying to the FBI about making undisclosed support payments to his admitted mistress.

He faced up to 90 years in prison, but the charges were dismissed and he pled to a misdemeanor and paid a $10,000 fine.

After leaving office, he became president of Univision Communications, the nation's leading Spanish language television broadcaster. But he resigned from that post on Monday to team up with K&B to identify and acquire sites, plan and develop neighborhoods, and build houses as competitively priced "villages within cities."

"There is great momentum for new development in central cities," the former HUD secretary said.

"City leaders recognize that large-scale home ownership provides community stability. Many Americans want to live closer to work and enjoy a more metropolitan lifestyle. There also is a definite increase in demand for ownership among minorities and immigrants," he explained.

"These factors have created a tremendous opportunity for American CityVista to build a successful business because it is based on ever-growing need."

Cisneros and K&B will concentrate first on cities in California, Texas, Arizona, Nevada and Colorado.

The venture will have offices in Los Angeles and San Antonio, where Cisneros, who will serve as chief executive officer, will be headquartered. K&B, which will have a minority stake in the venture, also has added the former HUD secretary to its board.

Published: August 9, 2000

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