The Obama administration is touting legislation that would allow housing authorities to borrow money from private banks to make long overdue repairs.

The Department of Housing and Urban Development says housing authorities need billions of dollars for renovations and private banks are more likely than the federal government to provide the needed funding.

"There really isn't any prospect that we are going to be able to get an infusion of $20 to $30 billion that public housing needs around the country just by looking to Congress," says HUD Secretary Shaun Donovan.

Donovan says housing authorities should also be allowed to take advantage of the same tools used by private developers that build affordable housing. Many of them rely on low-income housing tax credits which are tax breaks given to banks when they invest in affordable housing.

Earlier this year, Citigroup invested in more than a dozen public housing developments in New York City and received tax credits in exchange.

But local advocates for the poor are skeptical and fearful that private investment will ultimately drive up rents. They also fear that housing authorities could default on private loans, putting the properties into private hands. Donovan says protections will be written into the legislation that would require rents to stay low even if a property enters foreclosure.