So that wacky Beverly Hills Unified School District recently agreed to purchase a rather blah $1.535 million house on Doheny Drive (escrow is expected to close in the next week or so). The plan is to house their superintendent there--there's been lots of turnover--and use the two-level, 2,665-square-foot, four-bedroom, five-bathroom residence as an investment or for equity after it's paid off (they got a zero-down, 15-year municipal loan at a fixed interest rate of 3.7 percent and oh, as a public entity, BHUSD pays no property taxes on the house). Many people in the 90210 have opinions on the matter, but the latest development, courtesy of the BH Patch, is that the house will be leased to the current superintendent for $3,500 a month--at least $1,000 to $2,000 below market rate.
BHUSD board president explains it thus to the Patch: "We figured we will pay $468,992 in interest over the 15-year life of the loan, which works out to about $31,266 a year ... The current rent--which could increase in the future--more than pays for that, and we benefit because the home is an asset for the district." Patch commenters aren't really buying it. One reader makes an interesting point--BHUSD receives money from property taxes, but since they're not making any on this house, aren't they losing at least some money on the deal?
· BHUSD to Lease Home to Superintendent for Below-Market Rate [BH Patch]
· Here's the Bev Hills School District's New $1.535MM House [Curbed LA]