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Yes, they buy the houses ("improvements") back per the terms of the land lease. This is standard at universities where the houses are on university owned land. If they were on private land, then the house corporation would have to sell to some other independent buyer.
The university police moved some time ago. The 3 dorms will be torn down. I forget all 3 names but one was New Hall (though it was old when I was there in the 60's!). And they are not a block away. The land is adjacent to the KD and Alpha Gam houses in that cul de sac.
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