Campus Housing Rental Rates

3 January 2007

MEMORANDUM TO: All Campus Residents

SUBJECT: Campus Housing Rent Increase

The matter of rental charges for Faculty and Staff Quarters at The Citadel is a subject of special interest to campus housing occupants and something with which the staff has continually had to wrestle. The last rental increase was implemented in January and July 2005, in 50% increments. Significant efforts were made to obtain the most favorable property value and rent appraisals possible, and still meet State and Federal requirements.

As an auxiliary activity, State law prohibits the use of appropriated funds to repair and maintain campus housing, and the only funds we have available are those generated from rents. With the current condition of our housing units and the continual increase in costs required to provide basic services, present rental income is clearly inadequate to cover needed repairs and maintenance.

The last rental appraisal of our housing units indicates that our rents are approximately 36.51% below fair market value at the lowest (most favorable to housing occupants) such appraisal obtainable. In addition, the difference between the fair market value and rent currently charged continues to vary by housing unit, with some paying closer to fair market value than others.

Accordingly, the Staff has again recommended and the President has approved a tiered campus housing rent increase to help correct the imbalances and ensure that all housing occupants are treated fairly. The rent increase structure to be implemented is as follows, and is based upon the percentage rent difference between current and fair market value rents.

Rent Difference < 27.05% 5% Increase
Rent Difference > 27.05% and < 45.97% 10% Increase
Rent Difference > 45.97% and < 55.43% 15% Increase
Rent Difference > 55.43 % 20% Increase

Please note that the maximum increase to be assessed was set at 20%. The new rents translate to an average monthly rent increase, considering all campus housing units, of $43.67 per month or 9.90%. To ease the potential of any financial burden and allow campus residents to consider other housing options, this rent increase will be implemented in 50% increments. The first increment will become effective 1 April 2007, and the second 1 July 2007. In addition, all rents will be increased 2.5% effective 1 January 2008, and 2.5% again on 1 July 2008. Any future rent increases will be based upon the results of a full property and rent appraisal to be conducted in 2008.

Information on each particular housing unit and the rental increase is contained on The Citadel's website at http://citadel.edu/pplt/housing/Rent_schedule_2007.htm. A "Town Hall" meeting was held on 12 December 2006 to discuss the rent increases, answer any questions, and demonstrate how the increases were arrived at. If you have any questions on this matter, please contact Physical Plant at 953-6881

D. M. Tomasik
Colonel, USA, Retired
Vice President for Facilities
and Engineering

DMT/cmm