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

2. Session Overview What is a student housing affiliation agreement?
Motivating factors
Institutional participation
Case studies

3. Basic Concepts Aspects of affiliation agreements
Balance of risk and control
Application and outcomes

4. 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. What is an Affiliation Agreement?
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

6. What is an Affiliation Agreement?
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

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

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

9. 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

10. Institutional Participation “The property owner 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

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

12. Institutional Participation “The property owner may…”
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

13. Institutional Participation
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

14. Case Studies University of Michigan Off-Campus Housing Program
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

15. Case Studies University 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

16. Case Studies University of Illinois 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

17. Case Studies University of Louisville Affiliated Student 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.

18. Case Studies University of Louisville Affiliated Student Housing
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

19. Case Studies University of Louisville Affiliated Student Housing
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

20. Case Studies University of Louisville Affiliated Student Housing
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

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

22. Case Studies University of Louisville Affiliated Student Housing
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

23. Case Studies University of Louisville Affiliated Student Housing
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

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

25. Thank You! Sarah Samuels - sls@thesciongroup.com
Shannon Staten –
Jason Taylor –