MEMORANDUM TO: All Campus Residents

FROM: Colonel G. Dewey Yeatts

DATE: 1 August 2008

SUBJECT: Campus Housing Monthly Rent Increase

As you may be aware, state law and IRS regulations require that The Citadel contract with an independent housing appraiser periodically to insure that rental rates charged for housing/quarters are within five percent (5%) of the appraised value. Such an appraisal was recently conducted.

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 which the staff has continually addressed. The last rental increase was implemented in April 2007. Significant efforts were made to obtain the most favorable property value and rent appraisals possible while continuing to meet state and federal requirements.

As an auxiliary activity, state law prohibits the use of appropriated public funds to repair and maintain campus housing. The only funds we have available for repair and maintenance are those generated from rental income. 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. Accordingly, if you have significant repair and maintenance needs within your quarters, please contact the Physical Plant via submittal of an on-line work order.

The last rental appraisal of our housing units indicates that on average our rents are approximately 31.03% below fair market value at the lowest (most favorable to housing occupants) appraisal value. 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.

As a result of the required appraisal, 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 based upon the percentage rent difference between current and fair market value rents as follows:

Rental Rate Difference Increase/Change

Rent Difference < 12.31% No Increase

Rent Difference > 12.32% and < 24.62% 10% Increase

Rent Difference > 24.63% and < 36.93% 15% Increase

Rent Difference > 36.94% and <49.24% 20% Increase

Rent Difference > 49.25% 25% Increase

I realize that the above information may be somewhat confusing and most individuals are only concerned about the actual amount that their specific rental rates will increase. To that end, I have included a listing of current rental fees as well as the new fees for fiscal year 2008-2009; you may obtain your specific information by your physical quarters address.

Please note that the maximum increase to be assessed was set at 25%. 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 September 2008 and the second will be implemented on

1 February 2009. This rental rate increase is for basic rent only and does not include utilities or solid waste collection.

Should you have any questions on this matter, please contact the Physical Plant at 953-6881.