Did you know room and board costs outweigh tuition costs at most public universities? CHIA would mean more not-for-profit student housing would be built, improved and maintained, saving future undergraduates potential student loan costs.

Collegiate Housing and Infrastructure Act

What is the problem?

A discrepancy in the tax code prevents not-for-profit entities from being able to use tax-deductible charitable contributions to build, maintain and improve student housing.

  • Fraternities often lack the financial ability to build new structures and make critical safety improvements to existing facilities.
  • Because of this issue, fraternity members often live in sub-standard housing.
  • Fraternities are losing capacity given that they cannot make the improvements we need to ensure a safe living environment for students.
  • Alumni and donors want to contribute to improve fraternity housing to positively impact member living and learning experience, but are unable to make tax-deductible donations under the current code.

What is the solution?

The Collegiate Housing and Infrastructure Act (CHIA) (H.R. 1200/S. 736)

  • CHIA eliminates an arbitrary distinction in the current tax code that allows colleges and universities to use charitable contributions to build and maintain student housing but prevents other not-for-profit student housing entities from doing the same.
  • CHIA would result in all not-for-profit housing being treated the same under the law.
  • The text of the bill simply states that a 501(c)(3) organization will not lose its tax-exempt status solely because it chooses to make housing and infrastructure grants to 501(c)(2) organizations or 501(c)(7) organizations.

Primary benefits for passage of CHIA

  • Safety: Fraternities often lack the funds needed to provide critical safety upgrades to existing structures.
  • Affordability: More not-for-profit housing will be built allowing students to better afford safe housing.
  • Creates jobs: Over $1 Billion dollars in proposed housing is waiting to be built providing needed jobs.
  • Minimal costs to tax payer: It is rare that a bill costs the tax payer little and has bipartisan support.
  • Treats everyone the same: All not-for-profit student housing would be treated consistently under the law.

How much will CHIA cost?

The Joint Committee on Taxation last scored the cost of CHIA at $148 million over 10 years.