Repository: UIHistories Project: Board of Trustees Minutes - 1948 [PAGE 342]

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1947]

UNIVERSITY OF ILLINOIS

341

S U P P L E M E N T A R Y S T A F F HOUSING P R O J E C T (9) On February 27, 1047 (Minutes, page 259), the Board of Trustees authorized a request to the General Assembly for a special emergency appropriation of $250,000 for staff housing. The General Assembly has passed and the Governor has approved the appropriation. On March 27, 1047, the Board authorized contracts for the purchase of sites and 25 prefabricated houses. The total cost of these houses is estimated at $225,000, of which $70,700 can be borrowed and amortized out of the net income which will be available from the rental of the houses. An appropriation of $154,300 will be necessary from the State appropriation for staff housing to complete this project. Since the original request for a supplementary appropriation was submitted to the General Assembly, the U. S. Department of Commerce has offered to advance funds to the University of Illinois for the purpose of studying the site fabrication of small houses. The purpose is to determine methods of reducing the manhours required for the erection of small houses. It is proposed to build six small houses, three of frame and three of masonry construction. The houses will be built in the same area as the 25 prefabricated houses. The construction of the proposed six houses of a conventional type in this area will improve the appearance of the entire project as well as provide six additional houses for staff housing. The Department of Commerce offers to advance $45,000, $19,200 of which can be used for construction labor in the erection of the houses. The remaining funds will be used for research costs. The cost of the homes is estimated by Professor W . H . Scheick, Coordinator of the Small Homes Council, at $10,025 a house, or a total cost of $60,150, including the necessary land. The sum of $19,200 to meet labor costs will be provided by the Department of Commerce, and $40,950 must be provided from other funds. Based on estimates of net income which will be available from the rental of the completed homes, about $13,000 can be borrowed and amortized within a ten-year period. To complete the project, an appropriation of $27,950 from the supplementary appropriation for staff housing will be necessary. The Legal Counsel has given an opinion that, under the contract, the government will not have any title to, lien, or encumbrance on any of the houses thereunder, but that such houses will be the sole property of the University. It is proposed to use the remaining funds in the supplementary state appropriation, estimated at $67,750, for expenditures on federal housing units. Approval of the revised project and appropriation of the funds to become available are requested.

SUMMARY OF FINANCING PROGRAM FOR SUPPLEMENTARY STAFF HOUSING PROJECT

Total Total estimated cost of houses #285 150 Less amount contributed by Industrial Research and Development Division of U. S. Department of Commerce —19 200 —19 200 Amount to be provided by the University 225 000 40 950 265 950 Less amount which can be amortized in 10 years by the estimated net income available for debt service 1 — 70 700 —13 000 —83 700 A mount to be financed from special state appropriation #154 300 #27 950 #182 250 Estimated distribution of the #250,000 special state appropriation for staff housing: ! 25 additional prefabricated houses ? 5 4 3°° 6 research homes 27 950 F P H A housing units 67 750 Total #250 000

Prefabricated houses (25) #225 000

Research homes (6) ?6o 150

The Comptroller presented this matter. On motion of Mr. Davis, this project was approved as revised, and the appropriation was made by the following vote: Aye, Mr. Davis,

1 Annual net income available for debt service estimated at $8,236 for the prefabricated houses and $1,513 for the 6 houses.