4 ms·

Didn't we already find out that one of the sponsors was Stanford University? Or at least as part of collateral, a home on Stanford property.

Q6T46nT668w6i3m 4y ago
Yes. This is an addition to that property. And, just to be clear, it isn’t Stanford’s.
- deleted 4y ago
  [deleted]
gnicholas 4y ago
Yes, a home owned by his parents, located on land leased by his parents from Stanford. Apparently this didn’t require Stanford’s approval, as the leaseholders can encumber their ownership without asking permission. https://www.latimes.com/california/story/2023-01-30/sam-bankman-fried-parents-house-bail-stanford https://www.latimes.com/california/story/2023-01-30/sam-bank...
compiler-guy 4y ago
Stanford wasn't the sponsor in any way. However his parents lease property from Stanford, and these leases are structured in a way called a "Restricted Residential Ground Lease", and it is quite similar to ownership. You can read the painful details here: https://fsh.stanford.edu/sites/default/files/inline-files/RestrictedResidentialGroundLeaseWeb.pdf https://fsh.stanford.edu/sites/default/files/inline-files/Re... But the point is that Stanford itself had no input.
gumby 4y ago
The faculty deal is that stanford owns the land but the faculty member owns the house. They get discounted mortgages, and though they can (or have to if they leave) sell the house, the only permitted buyers are stanford faculty or a few non-faculty employees. This kind of arrangement (house built on leased land) is common in some places (e.g. London) but pretty unusual in the USA. So the parents can post their house as collateral. Non-bail aside: stanford recently changed the terms of those leases so they are only 50 years. This can screw you if you want to retire in your home, but increases housing supply, which is relevant to another HN front page post about zoning.
- Mountain_Skies 4y ago
  Similar setups exist for fraternities and sororities. They lease university land for a token amount but own the house that's built on it. In some cases, the university even gives loan guarantees for the mortgage on the house. This makes Greek organizations more financially viable than they otherwise would be and desirable locations near or on campus. In exchange, the university has incredible amount of leverage over the Greek organizations to ensure their compliance with university rules. Of course, some schools are quite lax on this but when something rises to the level of legal proceedings, the university can move swiftly in banning the organization from campus.

Q6T46nT668w6i3m 4y ago

Yes. This is an addition to that property. And, just to be clear, it isn’t Stanford’s.

deleted 4y ago
[deleted]

gnicholas 4y ago

Yes, a home owned by his parents, located on land leased by his parents from Stanford. Apparently this didn’t require Stanford’s approval, as the leaseholders can encumber their ownership without asking permission. https://www.latimes.com/california/story/2023-01-30/sam-bankman-fried-parents-house-bail-stanford https://www.latimes.com/california/story/2023-01-30/sam-bank...

compiler-guy 4y ago

Stanford wasn't the sponsor in any way. However his parents lease property from Stanford, and these leases are structured in a way called a "Restricted Residential Ground Lease", and it is quite similar to ownership. You can read the painful details here: https://fsh.stanford.edu/sites/default/files/inline-files/RestrictedResidentialGroundLeaseWeb.pdf https://fsh.stanford.edu/sites/default/files/inline-files/Re... But the point is that Stanford itself had no input.

gumby 4y ago

The faculty deal is that stanford owns the land but the faculty member owns the house. They get discounted mortgages, and though they can (or have to if they leave) sell the house, the only permitted buyers are stanford faculty or a few non-faculty employees. This kind of arrangement (house built on leased land) is common in some places (e.g. London) but pretty unusual in the USA. So the parents can post their house as collateral. Non-bail aside: stanford recently changed the terms of those leases so they are only 50 years. This can screw you if you want to retire in your home, but increases housing supply, which is relevant to another HN front page post about zoning.

Mountain_Skies 4y ago
Similar setups exist for fraternities and sororities. They lease university land for a token amount but own the house that's built on it. In some cases, the university even gives loan guarantees for the mortgage on the house. This makes Greek organizations more financially viable than they otherwise would be and desirable locations near or on campus. In exchange, the university has incredible amount of leverage over the Greek organizations to ensure their compliance with university rules. Of course, some schools are quite lax on this but when something rises to the level of legal proceedings, the university can move swiftly in banning the organization from campus.