University of Virginia Library

NEW MARRIED STUDENT HOUSING PROJECT

The President advised the Board that the General Assembly, at its 1960 session, had
authorized The Rector and Visitors to borrow funds for the purpose of erecting not exceeding
twelve apartment houses to house 120 married students, at a total cost not to exceed one million
two hundred thousand dollars and to issue revenue bonds for the repayment of such loan which
bonds shall be payable from the revenue derived from rentals. See Acts of Assembly, 1960, Chapter
410.

Pursuant to this authorization a preliminary application had been filed with the Federal
Housing and Home Finance Agency for a loan of one million two hundred thousand dollars, under
its College Housing Program, for the erection of twelve apartment houses on the property of the
University at Charlottesville. The preliminary application was approved by the Agency on 31
October 1961 and the University was advised that a reservation of funds in the amount of one
million two hundred thousand dollars had been made.

The University had further been advised that final application with all supporting data must
be filed with the Agency not later than 12 February 1962. Among other supporting data to be
filed with the Final Application a resolution of the Board authorizing the making of the loan
application was required.

The proposed loan for $1,200,000.00 would probably be evidenced by a bond or bonds aggregating
that amount bearing interest at the rate of 3-3/8% per annum and would be amortized over a period
of 40 years. However, as the first principal payment would not become due until two years after
the signing of the loan agreement the loan would be actually amortized over a 38 year period. The
annual payment for principal and interest for each $1,000.00 of the loan at 3-3/8% amortized over
a period of 38 years would be approzimately $47.09. It was contemplated that the University would
pledge the net revenues to be derived from the operation of the proposed facilities as security
for the loan.

Subsequent to the filing of the preliminary application above referred to it was ascertained
that the terrain of the Copeley Hill property indicated a division into fourteen apartment houses
would be more economical than a division into twelve. However, under Chapter 410 of the Acts of
Assembly, 1960, the authorization to borrow the necessary funds was "for the purpose of building
not exceeding twelve apartment houses to house one hundred twenty married students, at a total
cost not to exceed one million two hundred thousand dollars."

It was therefore necessary to obtain an amendment to the 1960 act from the legislature.
Fortunately, since the General Assembly was in session, it proved possible, through the cooperation
of Lieutenant Governor Godwin and others, to obtain the passage of an emergency act amending Chapter
410 to provide for the erection of fourteen instead of twelve apartment houses. Chapter 410
was not otherwise amended. The new act was signed by Governor Harrison on 8 February, and has been
designated as Chapter 5 of the Acts of Assembly, 1962.

The President advised that under Chapter 410 of the Acts of Assembly, 1960, as amended by
Chapter 5, Acts of Assembly, 1962, and under the provisions of Title 23, Chapter 3, of the Code of
Virginia, 1950, as amended, the University has the power, with the consent of the Governor first
obtained, to issue bonds to finance such a project pledging the net revenues to be derived from
the operation of the facilities as security.

After careful consideration and full discussion of the proposal, upon motion duly made and
seconded, it was

RESOLVED by the Board of Visitors of The Rector and Visitors of the University of Virginia,
a corporation created and existing under the laws of the State of Virginia, that Vincent Shea,
Comptroller of said body corporate, be and he hereby is, authorized to make, in the name and on
behalf of The Rector and Visitors of the University of Virginia, final application to the Federal
Housing and Home Finance Agency for loan assistance under Title IV of the Housing Act of 1950, in
the amount of $1,200,000.00 for the erection of fourteen apartment houses to house 120 married
students, on the property of the University at Charlottesville, and to file the same with said
Housing and Home Finance Agency.