Of course a lack of regulations also can lead to this:
On a quiet Ditmas Park side street, taxpayers shell out $2.3 million a year to lease space from the Catholic Church for a charter school called Brooklyn Dreams.
What’s shrouded in a cloak of secrecy is whether the arrangement is a good deal for the taxpayer.
That’s because a for-profit firm called National Heritage Academies acts as a middleman, renting space from the church at rates it calls “private.” Then NHA sublets the space to Brooklyn Dreams.
The firm charges the school $46.99 per square foot — much more than the $14.25 to $25.50 per square foot the city typically pays to lease school space from the church.
In effect, the for-profit company is charging the taxpayers at a far higher rate— in some cases more than double — than what the city would normally pay to rent space for public schools.