WCCS News Do you want to share this? Share IUP TO BUY PUNXSY DORM Citizens Bank opted out of mortgage deal 7/21/2010 IUP will have to assume the ownership of a student housing unit at its Punxsutawney campus after the bank that was financing the building decided to seek an early payoff on its loan. The university will do it through State System of Higher Education tax-exempt bond financing, backed by student rent. The three-story, 194-bed dorm is owned by University Acquisitions, which is affiliated with IUP. It opened in 2005 on university-owned land, and was being financed on a 25-year mortgage from Citizens Bank. But the bank had an option to seek full repayment after five years and did so, with the effective date of November 1st of this year. The new arrangement will be valued at around $8.5 million, and the new financing will save the university about $1.2 million over what it would have paid the bank. In effect, it amounts to IUP making payments on the bond rather than to the bank, and saving about $60,000 per year. The State System board of governors, which meets today and tomorrow, is expected to approve the arrangement. It also will be setting tuition levels at the State System schools for the coming academic year.  «  Return to previous page  »  Send to a friend ShareThis