University of Virginia Library

NEW UNIVERSITY DORMITORIES 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 seven dormitories
to house 120 students each, at a total cost not to exceed three million 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 425.

Pursuant to this authorization a preliminary application had been filed with the Federal Housing
and Home Finance Agency for a loan of three million dollars, under its College Housing Program, for
the erection of seven dormitories on the property of the University at Charlottesville. The preliminary
application was approved by the Agency on 11 January 1961 and the University was advised that a reservation
of funds in the amount of three million 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 11 April 1961. 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 $3,000,000 would probably be evidenced by a bond or bonds aggregating that
amount bearing interest at the rate of 3½ per cent 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 of the loan at 3½ per cent amortized over a period of
38 years would be approzimately $48.00. 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.

The President advised that under Chapter 425 of the Acts of Assembly, 1960, 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.

The President proposed and the Board adopted the following resolution

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 $3,000,000 for
the erection of seven dormitories on the property of the University at Charlottesville, and to file the
same with said Housing and Home Finance Agency.