I would ask my advisor this question but she is out of town and the person I talked to over the phone on campus apparently was new to his job.
Basically I ended up failing a class at the university I attend. To save some money on tuition I wanted to retake that equivalent course at a community college.
I know the credit hours will transfer, but would it raise my GPA at the university I originally failed it at? A friend told me I would have to retake that class only at the university if I wanted my GPA at that university to go up. Is this true?
Only people in the administration of your own university can answer your question with certainty. You have to wait until you can speak with someone there.
Most colleges and universities record transferred credits without the grades, however some do transfer the grades as well.
Most of the time, from everything I have seen, colleges use only their own courses in computing their own GPAs. So, no, in most cases, the course you retook would not mitigate your main college gpa, though it can be used to take care of the required course. Ordinarily, you would have to retake the course at the same college in order for it to affect that college gpa.
I would check with your adviser and get the class pre-approved by your college before you take it. Some 4 year colleges do not accept transfer credits from a CC. And if your college does accept the credit, it will more than likely show up as a Pass at your university and will not factor into your GPA. Again, check with your adviser to learn what classes are acceptable to transfer and how your school handles 'transfer credits.