My guess would be that every community college wants to be a university when it grows up. Adding living space for students will make the institution more attractive to students from farther away. This will enlarge enrollment and require hiring more staff and building more classroom space.
At what cost? Does this mean that people won’t be able to afford it?
High cost and huge student loans is the problem. Making education more expensive is not going to solve the problem. Only make it worse.
I think that's been offered as argument. But then the school is no longer a community college.