College housing: if we build it, they will come.

New York City is the largest, most culturally enriched and diverse college town in the U.S.

If you haven't thought of New York as a college town--consider that 790,000 students enroll in the colleges and universities of the five boroughs annually. Students come from all over the world for the opportunity to study in New York City.

As hard as it may be to get accepted to one of the city's institutions of higher learning, it's even more difficult for a college student to find a place to live in New York.

There are only 50,000 college-operated beds in the city, which equates to housing for just 46 percent of those who request it.

According to a study of student housing in the five boroughs commissioned by Educational Housing Services, Inc., The Graduate Center at the City University of New York and Pace University, there's a current shortage of 55,000 student beds in the five boroughs and by the year 2012, that figure shows only slight improvement, with a projected shortfall of 50,000 beds per year.

Ask any college recruiter in New York City what the greatest challenges are to attracting students and lack of housing is guaranteed to be near the top of the list.

The lack of college student housing in New York City is not a new phenomenon. Nearly 20 years ago, while Vice President of Operations for the American Musical and Dramatic Academy in New York, I faced the same obstacle.

So, I founded Educational Housing Services, Inc. in January 1987, which has since grown to become the city's leading provider of safe, affordable, privatized student housing.

EHS will house 4,000 New York City college students from September 2004 through August 2005, a fraction of the beds currently needed.

New York City colleges are starting to respond to the demand for housing.

The Fashion Institute of Technology recently outlined plans to develop a 1,100-bed dormitory for its students. Cornell University built a 400-bed facility on Roosevelt Island and the City University of New York (CUNY) earlier this year issued a request for proposals to build a student residence in Harlem.

While New York is a great college town, it's not a typical one. Unlike rural institutions, colleges here don't have the luxury of owning vacant acreage on campus on which they can erect student residences. New York City colleges must fight with the private sector for scarce land and then turn to their financially troubled endowments, whose portfolios fell with the stock market, for funding.

So what's a city college to do? Two solutions: Privatization of college housing, which is proving to be a viable and profitable solution to the student housing crunch in other markets, and conversion of other multiple family dwellings such as hotels and apartment buildings.

In New York City, college-operated housing is a necessity as it improves student retention, academic achievement and even improves alumni donation rates. To attract the finest students nationally it is a required feature. Operating student residences, however, can prove to be a loss leader.

Colleges nationwide are learning that privatized development, management and even ownership of new student residences can help them meet housing needs without straining the college's bottom line. Privatized operation of existing college-owned residences is also proving to be a cost-effective tactic for schools, freeing up capital and reducing debt on their balance sheets.

City colleges should exercise caution when selecting a private housing partner, taking time to consider the partner's understanding of New York's unique business environment.

The partner's access to funding for new development is critical as is the company's experience managing student housing and its ability to assist the college in marketing the residences during slow periods, such as the summer semester.

Conversion of existing multi-family buildings is another viable option for city colleges. Tourism is subject to peaks and valleys, but students come to New York to study year after year.

Acquiring hotels--whether through purchase or lease--is proving to be mutually beneficial for schools and hotel owners.

This year, EHS will house students from many of the city's colleges and universities in the 2,500 rooms it has leased from the New Yorker Hotel, the George Washington, the Vanderbilt YMCA all located in Manhattan and the St. George Hotel in Brooklyn Heights. Each room has been renovated, redecorated and even re-wired to meet the exacting standards of today's college student. EHS staffs and maintains the student residences and provides a turnkey housing solution to colleges complemented by a comprehensive Student Life program.

New York City's colleges and universities offer among the most enriching educational experiences in the world.

By working with the private sector, these colleges can also offer greater access to safe, affordable student housing.

GEORGE SCOTT,

PRESIDENT EDUCATIONAL HOUSING SERVICES, INC.