Collegiate Housing Foundation has already incurred the time and expense of establishing an IRS approved 501(c)(3) organization to provide privatized student housing, thus saving a school the time and expense of creating a new foundation.
Since the cost of maintaining and operating the Foundation is shared by the numerous schools that use the Foundation, the ongoing operational cost to a particular school is much less than the cost that would be required by a single school to staff and operate its own foundation.
Because Collegiate Housing Foundation is already established and experienced, it has the ability to complete a bond financing in as little as 60 days or less, thereby allowing for urgent construction and opening deadlines to be met. Seeking the approval of the IRS to create a new foundation or to amend the organizational documents of an existing foundation can take four to six months and sometimes longer.
Existing foundations or newly established foundations rarely have the staff or the experience to own, finance and operate student housing. This results in a school having to use the valuable time of their own personnel to perform the many post-closing requirements associated with a bond financing, the cost of which is likely to be greater than the cost of allowing the Foundation to perform those duties. In many cases, existing school personnel are ill equipped to handle the required duties which increases the risk of failing to meet compliance deadlines and reporting requirements.
Using Collegiate Housing Foundation provides assurance that the requirements associated with a bond financing are being handled by an organization whose sole purpose is to handle such duties and which has the experience to do so.
|