Virginia Governor Has Another Conflict of Interest
 

McDonnell rents Henrico house to health commissioner

BY JIM NOLAN
Richmond Times-Dispatch | Posted: Wednesday, July 17, 2013 2:30 pm

Gov. Bob McDonnell has found a way to defray part of his monthly real
estate expenses on the millions in property he owns -- by renting his
western Henrico home to his hand-picked state health commissioner.

Dr. Cynthia C. Romero, who took over as state health commissioner in
January, has been renting the McDonnells' $835,000 home in the tony
Wyndham residential community, a McDonnell spokesman confirmed.

The details of the rental agreement were unclear. Based on the current
mortgage rate and loan for the property, a mortgage payment would be
about $2,800 per month.

News that the governor entered into a financial relationship with a top
state official under his supervision comes as federal and state
investigators probe the gifts the first family and McDonnell have
received during his time in office and his relationship with Star
Scientific CEO Jonnie Williams Sr.

"This is improper because it's an obvious conflict of interest for the
governor, and anybody can see that," said Larry Sabato, a political
science professor and director of the Center for Politics at the
University of Virginia.

"Suppose the governor wants to fire the commissioner. Does anybody think
he wouldn't consider losing the substantial monthly rent?" he asked.
"Suppose the commissioner is unhappy about plumbing or repairs or rent
increases. Does anybody think she might be hesitant to approach her boss?

"It's just plain bad judgment, and the latest sign that we have a
governor whose sense of propriety is lacking," Sabato said.

The McDonnells have lived in the Executive Mansion since the governor
took office in January 2010. McDonnell spokesman Rich Galen said that
before Romero, McDonnell's daughter and son-in-law have also lived at
the Henrico home while the governor has been in office.

Romero, a family practice physician from Virginia Beach was the chief
medical officer at Chesapeake Regional Medical Center before she was
named commissioner at a salary of $181,500 a year. She could not be
reached for comment Wednesday morning.

Romero succeeded former health commissioner Karen Remley. She resigned
last October citing political interference in the performance of her
duties as health commissioner following the approval process for
restrictive new construction regulations imposed on the state's existing
first-trimester abortion clinics.

The commissioner has the ability to grant waivers to clinics that fail
to meet the new construction standards. All existing clinics will be
obligated to comply with the standards by next fall.

The McDonnells purchased the Wyndham home in 2006 and lived there when
McDonnell was attorney general. According to county real estate
records, they took out a $650,000 mortgage on the property and have
refinanced the house several times to take advantage of lower interest
rates.

They now have an adjustable rate mortgage on the property for $696,000
at an interest rate of 2.625 percent. The assessment on the house is
$651,077, meaning they are under water.

In addition to the Wyndham home, the first family has mortgages on two
rental properties in Virginia Beach and a mountaintop home in
Wintergreen. The properties were purchased between 2005 and 2007 for a
total of $3.8 million. They are currently assessed at roughly $3.2 million.

The McDonnells have partial ownership of two Virginia Beach rental
properties that bring in an estimated $50,000 to $250,000 a year,
according to disclosure forms. The Wintergreen property, of which the
governor is also a partial owner, generates less than $50,000 a year.

The real estate company formed by McDonnell and his sister to manage the
Virginia Beach properties, MoBo Real Estate partners LLC, received a
$70,000 loan from Williams.

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