The on campus apartment is considered university housing. The buildings are owned and maintained by the school. All first and second year students live in traditional dorms on one part of the campus and juniors and seniors choose between university-owned apartments or townhouses on another part. The school is in a small, rural village and only a very small number of seniors are allowed to live off campus (maybe 75) because the school wants to preserve rental properties and low rental rates for the community there, not allow the market to be controlled by students and their parents.
FWIW, the university owns the fraternity and sorority houses, too.