for small local organizations that provide a needed service to the local populace, these kinds of essentially temporarily donated facilities have been very helpful. We tend to see them supporting such stuff as senior centers, arts organizations, health clinics and animal shelters; The problems emerge, as another commenter mentioned, when “political climates” change which they do with some regularity in local government. If a city manger or city council decides, for some reason, that the expenditure is inappropriate, you may need to have a plan B complete with budget ready for immediate deployment. There is also the problem of potentially sinking facility costs into a building that can be taken back – sunk costs and all. Here is an article on the topic https://nonprofitquarterly.org/1-rent-trap-another-nonprofit-finds-real-estate-risk/

nonprofitquarterly.org

The $1 Rent Trap: Another Nonprofit Finds Its Lease at Risk - Non Profit News | Nonprofit Quarterly

All over the country nonprofits get discount lease agreements with local governments that reflect the public sector’s interest in the nonprofit’s work. But what happens when circumstances and administrations change?