Repository: UIHistories Project: Board of Trustees Minutes - 1956 [PAGE 787]

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784

BOARD OF TRUSTEES

[September 23

can be increased. ( I t should be noted that the total fellowship fund budgeted for University-sponsored fellowships has been increased by only $7,000 since 1947.) I concur in the recommendation that the University fellowship stipend be fixed at $1,200 irrespective of the year of study, this change to become effective September 1, 1956.

On motion of Mr. Swain, this recommendation was approved.

BABCOCK FELLOWSHIPS (6) In 1931 the Board of Trustees accepted a trust fund offered by Dean Kendric C. Babcock of the College of Liberal Arts and Sciences, the income of which is to be used for research fellowships and publications in history and political science. T h e terms of this gift provide that " T h e Board will, in so far as practicable, establish group fellowships of approximately $1,000 each, to be awarded to candidates who are beyond their second year of graduate work." T h e stipulated amount "approximately $1,000 each" is no longer in line with stipends of other graduate fellowships, and the Departments of History and Political Science have recommended that the amount be increased to $1,500. The Legal Counsel is of the opinion that under the terms of the will the Board of Trustees possesses the right and power to make this change, and accordingly, it is recommended that the stipends of the Babcock fellowships be increased to $1,500 a year effective September 1, 1955, or as soon thereafter as income from the endowment permits. I concur. O n m o t i o n of M r s . H o l t , t h i s r e c o m m e n d a t i o n w a s a p p r o v e d .

COLLEGE HOUSING LOAN P R O G R A M

(7) T h e next steps in the University's program for the construction of additional, much needed student housing are an addition to Lincoln Avenue Residence to house 638 women and two new residence halls for men to house 450. T h e General Assembly of Illinois has broadened the University's borrowing power by authorizing the Board of Trustees to supplement the net income of residence halls with income from student fees to the extent necessary for amortization of bond issues. Possibilities of securing private financing of the construction of these residence halls have been investigated. T h e Congress has recently amended the Federal College Housing Loan P r o g r a m making certain changes, the most important to the University of Illinois being that the interest rate on any loans approved under the federal program is 2 ^ per cent per year. However, under these provisions of this program it is impossible to finance purchase of movable equipment to be used in student housing, and it is impossible to refinance existing obligations. These provisions are a disadvantage to the University of Illinois which has been planning to refinance the present indebtedness of approximately $500,000 on the Lincoln Avenue Residence. Nevertheless, the interest rate of 2% per cent per year is substantially less than could probably be obtained from private sources. While it is impossible to predict exactly the interest rate that could be obtained through competitive bidding, the Comptroller's information indicates that it is likely to be not less than 3 per cent and may be as high as y/z per cent. The total loan needed for the construction of the additional facilities planned as the next stage of the student housing program without the refinancing of the Lincoln Avenue Residence is $4,400,000. The Director of the Physical Plant and the Comptroller recommend that an application for such a loan be submitted and attempts made to qualify it under the federal program. If such a loan qualifies it must first be offered to private investors, and if there arc no offers of 2J4 per cent interest or less, then the federal government will loan the money. I recommend that the Comptroller be authorized to submit the necessary application and to take such other steps as are appropriate for its favorable consideration.

On motion of Mr. Bissell, this recommendation was approved and authority was given as requested.