New standard outlines responsibilities for partnerships, research in Purdue buildings

December 1, 2015  


Purdue has adopted a system-wide standard regarding third-party use of University buildings that are funded by low-cost, tax-advantaged financing, and faculty and staff need to be aware of the restrictions about type of use in these facilities.

The standard, Third-Party Use of Facilities (S-2), highlights the responsibilities concerning use of these facilities by or on behalf of third parties for private business use, which could include research activities, partnerships, retail operations, and management contracts, among other activities.

Purdue uses tax-advantaged financing to fund construction of certain academic, research and auxiliary facilities. The federal government regulates aspects of this financing activity, including the use of such facilities, to ensure that the benefit of the tax exemption is not extended to unrelated parties in excess of allowable limits, says Denise Laussade, director of treasury operations.

"The University's obligation to maintain compliance with federal laws around such facility use relies on awareness of these rules, which is why we created this standard," Laussade says. "Noncompliance could jeopardize the tax status of the debt financings, causing tax consequence to the bond holders and creating reputational and cost risk to the University."

The Office of Treasury Operations conducts an annual survey and works with Sponsored Program Services, Procurement, University Development Office, Business Management and building deputies to help identify private business use in tax-advantaged facilities. Treasury Operations is preparing to launch its survey for fiscal year 2015.

The office also has several online resources available on private business use, including campus maps that highlight debt financed buildings.

Questions about the standard can be directed to Laussade at dlaussade@purdue.edu or 49-61223. 

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