Matthew, You’re wrong about the 2005 LRDP settlement. It only required UCSC to house 67% of the additional students. That is, the LRDP was projecting an increase in students from 15,000 to 19,500 and the settlement required UCSC to house 67% of the additional 4,500. There are also a bunch of loopholes that allow UCSC to get out of that commitment.
I share your concern about privatizing a public resource. I’m sure UC is doing it in an attempt to get around it’s own intractable bureaucracy that in part accounts for the astronomical housing costs. However, I think the right answer is to reform its bureaucracy rather than privatize.