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

Use of this article without permission is a violation of federal copyright laws.

When Lew Sichelman first started writing about housing in 1969, he was the youngest real estate writer in the country. Now, 37 years later, he's one of the oldest -- and most decorated. He has been rated the top housing columnist in the country by the National Association of Realtors as well as by his peers in the National Association of Real Estate Editors. Indeed, NAREE has recognized his work on numerous occasions. One year - due to his advancing age, he can't recall which one - he earned top honors in the annual NAREE Journalism Contest in three out of the four major writing categories. It was the first time one writer has won so many NAREE awards in a single year. Known for his ability to make even the most difficult topics understandable, Sichelman also has been honored by the National Association of Home Builders and the Mortgage Bankers Association. He began providing in-depth coverage of and consumer-oriented information about housing and housing finance at the Washington Daily News, where he was real estate editor. He held that same position for nine more years at the Washington Star, which purchased the News in 1972. The Star, a so-called "writer's newspaper" which also had the misfortune of being an evening paper, was put out of its misery in 1981, and Sichelman, who had begun self-syndicating his column in 1978, decided to become a full-time columnist. Today, his column, "The Housing Scene," is distributed by United Media to newspapers throughout the country. He also is on the staff of National Mortgage News, an independent newspaper which is considered the bible of the mortgage business. And he writes for numerous other publications, including MarketWatch.com, where he answers readers questions once a week, Sports Illustrated (don't ask), RealtyTimes.com, BigBuilder and others. Sichelman is married, the father of five and grandfather of eleven.