A recent press release from the University of Pittsburgh Medical Center (UPMC) revealed that one of their senior communities received its license for assisted living. How many people even knew that the UPMC had senior housing in their portfolio?
It turns out that College and University affiliated senior housing is widespread. This company specializes in senior housing/college partnerships. They provide a list on their website with some big name examples of such arrangements – Notre Dame, Duke University, U of Florida, U of Michigan, etc. The housing communities are both private and non-profit. What are the benefits of such an arrangement for the two sides?
- Revenue – from the sale of land or from a lease
- Equity in the finished project and recurring payments for services
- Donations to school from residents of the community
- Housing option for retired faculty
- Opportunities for the studying of aging
- Expanded audience for campus events
- Prestige that comes with the affiliation
- Use of campus facilities – gym, library,etc.
- Intellectual enrichment – taking classes and seminars, cultural events, speakers
- Attractive to higher income, better educated demographic
College towns are usually overrepresented in popular “best place to retire” lists for the reasons mentioned above. I expect more of these affiliations in the future – for the high net worth retirees and for lower-income, working class retirees. If tax disputes become widespread in the future, affiliations could serve as a mutual benefit for universities and senior communities.
- Tax Breaks for Assisted Living Communities Under Scrutiny (scstuffblog.com)