Mayor Bill de Blasio is facing criticism over his relationship with a city lobbyist linked to a potential luxury housing development on the Lower East Side.

In his first news conference since returning from vacation, the Mayor faced questions about his relationship with powerful lobbyist Jim Capalino.

Capalino represented the developers in the Rivington House scandal and was a major fundraiser for de Blasio's mayoral bid in 2013.

The de Blasio administration came under fire after a deed restriction was lifted on the site of a former nursing home, which is now in the process of potentially becoming a luxury high-rise.

The deed required the lot to be used by non-profit groups.

NY1 has obtained e-mails between Capalino and City Hall showing he had direct access to the de Blasio administration.

The Mayor says he has cut off communication with Capalino and has changed the way he interacts with lobbyists.

"We're in a particular atmosphere. I understand that you know people are looking at that, so I think it's just smarter not to," de Blasio said Tuesday. "It's just a simple — look the whole, what I've said from day one I will repeat it — it may be the hundredth time, but I will repeat it. We are a very, very careful, scrupulous group of people."

An investigation into the incident found city officials were involved in negotiations surrounding the development last month.