Collegiate Housing Foundation works with colleges and universities nationwide to give them the benefits of ownership of new, state-of-the-art student housing facilities without their having to assume responsibility for financing, building, or operating them.
Benefits of Ownership Given to School:
New housing project for its students designed and constructed according to the school’s wishes
Receipt of all surplus cash flow generated by the project after the payment of debt service and operating expenses
Control and oversight over the management and operations of the project
Outright ownership of the project at the end of the financing
Burdens of Ownership Assumed by Collegiate Housing Foundation:
- Arranging for and overseeing the financing, construction and operation of the project through third parties approved by the school
- Monitoring and maintaining compliance with covenants required by the financing of the project;
- Directing investment of project-related funds
- Reviewing and approving all draws from the project construction account and overseeing the proper close out of the account after completion
- Assisting in the preparation of the project’s annual budget in accordance with the project financing documents
- Arranging for and overseeing completion of the annual project audit
- Filing all project related information on Schedule K to the Foundation’s Form 990 tax return
- Maintaining all required insurance on the project
- Overseeing the filing of all continuing disclosures required by the financing of the project such as periodic construction updates and occupancy reports
- Arranging for and overseeing the calculation of all rebate payments to the IRS required in connection with the financing of the project
- Responding to and mediating any claims or lawsuits related to the project
- Responding to and handling any casualties incurred by the project
The University of California, Irvine campus (“UCI”), has partnered with CHF for over 10 years. In that time over 5,000 beds have been developed and managed with another 3,500 beds coming on line in the near future. CHF has assisted through the planning, development and operational stages and has always offered sage advise, assured the operations are done per the requirements of the ground lease and IRS rules for tax exempt projects, consulted with UCI on its student needs and growth patterns, and been a partner that is focused on meeting all requirements of ownership correctly.
The important part of a relationship is each party being able to take positions and then be willing to reach solutions. CHF has been this type of partner and we see its team continuing to stay in partnership with UCI while offering the valuable services needed for the third-party student housing developments on our campus.