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President Barack Obama on Friday nominated San Antonio Mayor Julian Castro to become the next secretary of housing and urban development, calling him an “All-Star” who embodies the American dream.

Castro will replace Shaun Donovan, who Obama nominated to become director of the Office of Management and Budget.

“They are proven leaders, they are proven managers, they are going to be effective, and most importantly they have huge hearts,” Obama said while announcing the nominations at the White House. “They are in public service for the right reasons.”

Castro gained national recognition in 2012 when he delivered the keynote address at the Democratic National Convention, becoming the first Latino to do so. He has been mentioned as a possible vice presidential pick for the Democratic nominee in 2016.

“Just because you are of modest means doesn’t mean that you aspirations or your opportunities ought to be limited,” Castro said. “And it certainly means you can have the talent to succeed and achieve the American dream.”

Obama said he chose Castro, in part, because of the attention the three-term mayor gave to revitalizing San Antonio’s downtown.

Castro will be tasked with facing of the continued fallout from the housing crisis that plagued the beginning of Obama’s term.

Donovan, who has served as HUD secretary since 2009, will replace Sylvia Mathews Burwell. The president last month nominated Burwell to become the head of the Department of Health and Human Services following the resignation of Kathleen Sebelius.

Both Castro and Donovan will need to be confirmed by the Senate.