when they are preceded by thoughtful planning – planning that identifies the capital projects needed to achieve the institution’s strategic objectives for campus housing, estimates the amount of funding required to finance these projects, determines the amount of debt capacity available, and establishes priorities to guide necessary choices in the event that the entirety of desired improvements is not financially feasible. Understanding the Terms Understanding some of the terms commonly used in debt financing can help a housing officer to be an informed participant in discussions of the financial environment on campus generally and prospects for the financing needed for housing projects in particular. Most campus housing projects are financed by revenue bonds that are basically IOUs issued in $1,000 units. One or more underwriters act as intermediary between the offerer of the bonds – the college or university – and financial institutions such as brokerage Act What you need to know about debt financing By C. Joseph Carter and Cynthia P. Balogh JULY + AUGUST 2011 29