One of many city officials preparing for life after Bloomberg, Department of Housing Preservation and Development Commissioner Mathew Wambua last month announced plans to move to the private sector as head of RHR Funding, the mortgage-lending arm of Connecticut-based affordable housing developer the Richman Group.
In his new role, Wambua will be responsible for growing the mortgage lender and expanding its debt platform, the company said. Wambua, who was not available for comment, isn’t the only public official to decamp for the real estate industry recently. In July, Seth Pinsky left his post as president of New York City Economic Development Corporation to join Scott Rechler’s RXR Realty. And Rafael Cestero, Wambua’s predecessor as head of HPD, also departed for the private sector: After a stint at L+M Development, Cestero is now CEO of the nonprofit housing group Community Preservation Corporation.
“Real estate in New York is more connected to government than in almost any other city,” said Larry Longua, senior managing director at the advisory firm United Realty Partners and former associate professor at New York University’s Schack Institute of Real Estate. “If I were a real estate company, I would love to reach out to someone in the city administration and bring them on board. It’s almost a seamless hand off.” More of such defections are to be expected as the Bloomberg administration winds down, Longua said.
Wambua will be succeeded by RuthAnne Visnauskas, who until now has been HPD’s deputy commissioner for development. But industry sources said Visnauskas is unlikely to stay in her new post for long. The usual protocol is for previous administration personnel to tender their resignation to the new mayor. “If I’m coming in after as long and powerful an administration as Bloomberg’s, I want to set up my own infrastructure,” Longua said. “I don’t want anyone who’s leftover.”
Correction:
In the September story “Bloomberg officials beeline for private sector real estate,” TRD incorrectly stated the head of RXR Realty. Scott Rechler is chairman and CEO of RXR.