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

Student Housing Affiliation Agreements

Affiliation Agreements between Schools and Off-Campus Housing

providers

Shannon StatenUniversity of Louisville

Sarah SamuelsJason Taylor

The Scion Group LLC


Session Overview

• What is a student housing affiliation agreement?

• Motivating factors

• Institutional participation

• Case studies


Basic Concepts

• Aspects of affiliation agreements

• Balance of risk and control

• Application and outcomes


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.


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



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



• 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


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…”


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…”


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…”


Share some decision-making authority• Construction standards• Life safety requirements• Rental rates• Early contract termination



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



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


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 StudiesUniversity of Michigan Off-Campus Housing Program


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 StudiesUniversity of Michigan Off-Campus Housing Program


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 StudiesUniversity of Illinois Private Certified Housing


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 2009.

Case StudiesUniversity of Louisville Affiliated Student Housing


ULP Residence Halls (1,288 beds – Opened 2000-07)

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



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



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



Continuum of Housing Affiliations• Five levels for 16 communities• Define UL participation


1 2 3 4 5

Lowest affiliation /

involvement

Moderate affiliation /

involvement

Medium affiliation /

involvement

Ownership / modified control

Ownership / intensive control


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



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



“You can privatize your housing, but you can not privatize your

relationship with students and parents”

Housing Affiliation Agreements


Thank You!Sarah Samuels - [email protected] Staten – [email protected]

Jason Taylor – [email protected]

www.thesciongroup.comwww.louisville.edu/housing

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

Documents

property owner

schools control

campus property

level of participation

affiliated property

schools residential

control application

formal agreement