University of Virginia Library

Manager Explains
Rental Rate Increases

The new rental rates for married student housing on Copeley Hill
and at University Gardens, which become effective next September 1,
are in line with the University's long-standing determination to keep
housing rates at the lowest possible level. However, the University
cannot continue to operate these units on a deficit basis. An analysis
of income and expenditures for the married student housing for the
three-year period ending June 20, 1969, shows that expenditures will
exceed income from rents by $21,274. In the current fiscal year alone,
which ends next June 30, the deficit is expected to be $8,962.

In addition, during the three-year period, maintenance and
operation of the 323 units has risen from $145,971 to a budgeted
$172,376 for 1968-69 or a total of $482,351 for the entire period.
This reflects increases in wages, supplies, equipment, utilities and
maintenance costs. Payment on the retirement of the bonds used to
finance the units amounts to $631,541 for the three-year period. This
brings the total expenditures for the units during this time to
$1,113,892, while total revenues have been $1,092,618, or, a deficit
of $21,274.

Because necessary funds have not been available during this period,
only a minimum amount of maintenance of the housing units could be
carried out. There is now much needed general refurbishing and the
new rental rate schedule to go into effect nine months from now is
expected to produce revenues sufficient to these projects while
at the same time bringing revenues in line with expenditures.

The increases in rental rates for single student housing, also
effective next September 1, are more directly tied to increases in wage
levels for dormitory employees. In addition it is hoped that the rent
increases will provide funds for refurbishing the dormitories.