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My school has a house that, I think, is the type of arrangement you're talking about. It only houses about 20-30 students. You have to apply and prove financial hardship to live there.
Members of the house do all the work - cooking, cleaning, gardening, etc. - and pay maybe 2/3 the cost of living in the dorms. Sorry I'm hazy on the details, but I don't know anyone who lived there...
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