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 | Board of Visitors minutes March 25, 1983 |  |
Exhibit C
UNIVERSITY OF VIRGINIA
Preliminary
Feasibility Study
for
Housing for Approximately 300 Students
Prepared by The
University of Virginia Budget Office
In Consultation with the
Director of Business Operations
March 10, 1983
UNIVERSITY OF VIRGINIA
Housing for Approximately 300 Students
Project Description
The University is planning to construct housing for 300 students during the 1982-84 biennium. The Structure is expected to be completed in 1983-84 at a cost of $5,000,000 including utilities. We have requested approval of the total project by the General Assembly, and we would like to include $5,000,000 in a revenue bond issue for permanent financing.
The Student Housing Division is a self-supporting auxiliary enterprise, acting in direct support of the education mission of the University of Virginia. The housing of students has been the concern of the University since its founding. The University has two main goals in providing students with housing accommodations on the Grounds. The first is to furnish students with a variety of housing arrangements at reasonable cost. The second is to provide an environment in which each student may achieve the maximum realization of his or her potential--intellectually, socially, and physically. It is expected that attributes such as self-discipline, concern for the rights of others, mental and social maturity, and respect for public private property will be fostered in group residence situations.
As a part of the University's orientation and advisory system, all students entering one of the undergraduate schools directly from secondary school are required to live in one of the residence houses during their first year. After the first year in residence, a student may live in University housing, provided space is available. At the present time, University
The rapid growth of the University during the last decade has created a critical need for student housing, undergraduate and graduate, and although 5,103 units will be available by 1984-85, the student population will total 16,400. The University has an objective of providing housing for 50% of the student body.
Private enterprise has responded to the University's inability to provide sufficient housing for its student population by building increasing numbers of apartment units in close proximity to the Grounds. However, the profit motive and inflation have combined to make many of these units beyond the financial resources of the average student. The University has resorted to a "lottery" system for other than first-year students to compete for available spaces. Competition among upperclass students resulted in 5,000 students applying, through a recent lottery, for 1,873 available spaces. The situation is not expected to improve in the foreseeable future.
Payment of the debt will be from revenue from room rent. Rates are projected for the new facility at $1,450 per student during the academic session. In addition, summer conferences are expected to generate an additional $75,000 in revenues per year. It will be necessary to subsidize the facility from the existing housing system in an approximate amount of $293,800. In calculating the debt payment schedule, we use 8.5% as our interest rate and extended payments over 20 years. These resulted in coverage of approximately 110%.
| Board of Visitors minutes March 25, 1983 | |