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Student Housing Affiliation Agreements Affiliation Agreements between Schools and Off-Campus Housing providers Shannon Staten University of Louisville.

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Presentation on theme: "Student Housing Affiliation Agreements Affiliation Agreements between Schools and Off-Campus Housing providers Shannon Staten University of Louisville."— Presentation transcript:

1 Student Housing Affiliation Agreements Affiliation Agreements between Schools and Off-Campus Housing providers Shannon Staten University of Louisville Sarah Samuels Jason Taylor The Scion Group LLC

2 Student Housing Affiliation Agreements Session Overview What is a student housing affiliation agreement? Motivating factors Institutional participation Case studies

3 Student Housing Affiliation Agreements Basic Concepts Aspects of affiliation agreements Balance of risk and control Application and outcomes

4 Student Housing Affiliation Agreements What is an Affiliation Agreement? A formal agreement in which a college or university directs students to an off- campus property as if it were part of its own inventory.

5 Student Housing Affiliation Agreements In addition to directing students to the property, the college/university may… control some aspects of operations lease the land to the owner offer some guarantees What is an Affiliation Agreement?

6 Student Housing Affiliation Agreements In addition to providing housing to students, the property owner may… adhere to the school’s residential policies share some decision-making authority provide financial incentives What is an Affiliation Agreement?

7 Student Housing Affiliation Agreements Address an urgent need Expedite development Gain experience and expertise Reduce risk Broader planning goals Limit credit impact Obtain favorable balance sheet treatment Motivating Factors

8 Student Housing Affiliation Agreements Control aspects of operations Residence life (staffing and training) Community living standards Security Information technology Marketing / Room assignments Billing / Collection Maintenance / Custodial Institutional Participation “The college/university may…”

9 Student Housing Affiliation Agreements Lease land to owner Offer some guarantees Assumption of bad debt Occupancy guarantee Master lease for some portion or period of time Assume construction / delivery risk Institutional Participation “The college/university may…”

10 Student Housing Affiliation Agreements Adhere to the school’s residential policies Restrict marketing activities Agree to mediate landlord/tenant conflicts Provide residence life staff and/or programs Enforce student code of conduct Institutional Participation “The property owner may…”

11 Student Housing Affiliation Agreements Share some decision-making authority Construction standards Life safety requirements Rental rates Early contract termination Institutional Participation “The property owner may…”

12 Student Housing Affiliation Agreements Provide financial incentives Annual affiliation fee Fee for school’s services Profit-sharing from operations or sale Reversionary rights Right of first refusal or last offer Institutional Participation “The property owner may…”

13 Student Housing Affiliation Agreements Generally, a school’s control over a property and exposure to risk are directly proportional to its level of participation with the affiliated property. OR… The more involved you become  the more control you have  the more risk you take Institutional Participation

14 Student Housing Affiliation Agreements The University… Lists properties on its website Provides landlord/tenant conflict mediation services Hosts an annual “off-campus housing fair” Property owners… Pay an annual fee Agree to use the University’s standard lease Enter conflict mediation before civil litigation Case Studies University of Michigan Off-Campus Housing Program

15 Student Housing Affiliation Agreements As a result… Decreased landlord/tenant litigation Increased compliance with municipal codes Improved town/gown relationship Annual off-campus rental rate and occupancy report Case Studies University of Michigan Off-Campus Housing Program

16 Student Housing Affiliation Agreements Private Certified Housing ~3,000 beds in 15 properties Satisfy first year live-on requirement Participate in U of I residence life staff training Provide on-site dining services and meal plans Case Studies University of Illinois Private Certified Housing

17 Student Housing Affiliation Agreements UL had a need for 2,100 additional beds of apartment-style student housing and could not provide land or a master lease. In fall 2007, UL issued an RFP to property owners and developers. UL reached agreement with two developers to provide up to 1,600 beds by fall 2011; 850 of which opened in fall Case Studies University of Louisville Affiliated Student Housing

18 Student Housing Affiliation Agreements ULP Residence Halls (1,288 beds – Opened ) EDR Realty Trust On University-owned land, ground leased to foundation Joint design decisions Delivered by design-build-manage RFP process Goal to deliver a seamless experience to students Common application and license Common billing & collections Considered on-campus inventory Case Studies University of Louisville Affiliated Student Housing

19 Student Housing Affiliation Agreements The Province (858 beds – Fall 2009) Edwards Communities UL designated the amount of graduate student housing Adhere to UL life safety and on-site staffing guidelines Rental rate increases tied to campus housing and HEPI Early termination agreement Common application Annual affiliation fee Profit-sharing from property sale UL right of first refusal to purchase Case Studies University of Louisville Affiliated Student Housing

20 Student Housing Affiliation Agreements Benefits to the University Increase housing inventory Purpose-built LLCs Flex space for on-campus renovations Control experience based on institutional priorities Extend campus border Created affiliated housing tiers Retain control over community development Case Studies University of Louisville Affiliated Student Housing

21 Student Housing Affiliation Agreements Continuum of Housing Affiliations Five levels for 16 communities Define UL participation Case Studies University of Louisville Affiliated Student Housing

22 Student Housing Affiliation Agreements Continuum of Housing Affiliations Application Assignment Lease / Licensure Agreement Billing / Collections Facility management Reception / Security staff and systems Fire / Life safety standards and monitoring IT / Voice / Cable Case Studies University of Louisville Affiliated Student Housing

23 Student Housing Affiliation Agreements Continuum of Housing Affiliations Mandatory Dining Plan Housing staff ratio UL point of contact Policy enforcement Resident group Community living standards responsibility Student development / residence life Management fee target Case Studies University of Louisville Affiliated Student Housing

24 Student Housing Affiliation Agreements “You can privatize your housing, but you can not privatize your relationship with students and parents” Housing Affiliation Agreements

25 Student Housing Affiliation Agreements Thank You! Sarah Samuels - Shannon Staten – Jason Taylor –


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