UW Seattle Approve Residence Hall, Single Student Apartment and Family Housing Rate Adjustments

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1 VII. STANDING COMMITTEES F 6 B. Finance and Asset Management Committee UW Seattle Approve Residence Hall, Single Student Apartment and Family Housing Rate Adjustments RECOMMENDED ACTION It is the recommendation of the administration and the Finance and Asset Management Committee that the Board of Regents approve the proposed student housing and dining rates for the University of Washington Seattle, making the proposed rates effective July 1, BACKGROUND Housing & Food Services (HFS) plays an integral role in supporting the University s mission by providing residential communities that support students development with a focus on personal and academic success. HFS houses 7,347 students and families and works in partnership with Blanton Turner (a management company) in housing an additional 1,000 residents. HFS also operates restaurants, espresso bars, and markets across campus. Students who live in most nine-month residences are required to have a dining account a prepaid card that can be used at any HFS dining location. OPERATIONS Per the Housing Master Plan, HFS will impose a 2% annual rate increase on the housing rates for residence halls and single student apartments. HFS also anticipates a 1.6% increase in normal operating expenses during fiscal year for residence halls and single student apartments and a 2.8% increase for Family Housing. These anticipated increases are equal to and slightly below the projected 1.6 and 1.9 percent increases given in the Seattle Consumer Price Index for the 2014 and 2015 calendar years, respectively (Washington Economic and Revenue Forecast, November 2013, Office of the Forecast Council). Housing Master Plan In March 2008, the Regents approved an annual 2% rate increase for the Housing Master Plan. The increase reflects the amount needed to sustain the new debt load incurred in developing new student housing. The increase will be reviewed in later phases of the Housing Master Plan and will be discontinued when rates are sufficient to maintain minimum debt service coverage and operating reserve requirements. F 6/203-14

2 VII. STANDING COMMITTEES B. Finance and Asset Management Committee UW Seattle Approve Residence Hall, Single Student Apartment and Family Housing Rate Adjustments (continued p. 2) Utilities Expected increases in telecommunication services have been offset by budget adjustments in electricity and waste and water in single student housing. No adjustments are proposed for Family Housing utilities. Operational Increases Mandated step and cost-of-living increases (contract classified staff), minimum wage increases, staff organizational changes, estimated benefit load changes, and room and dining compensation changes are taken into account. Labor adjustments in Family Housing call for a higher increase for the housing type. Anticipated increases related to contracts for supplies and services, including administration, will add to the increase in operations as well. Residence Halls Single Student Apartments Family Housing Housing Master Plan 2.0% 2.0% 0.0% Utilities (Telecom, Electricity, Waste, Water) (0.1%) (0.1%) 0.0% Operational Increases 1.7% 1.7% 2.8% Total Room Rate Increase 3.6% 3.6% 2.8% PROPOSED RATES The proposed room rates for reflect an overall increase of 3.6% for residence halls and single student apartments. The anticipated increase in normal operating expenses (1.6 %) will be spread equally among all housing types at $117 per bed resulting in the same financial impact among old and new housing. With the opening of Lander Hall in January 2014, approximately 53% of all double rooms are new residence hall double and 47% are traditional residence hall double. 1 1 A new residence hall double is defined as a double-occupancy bedroom with a private bath in the bedroom. A traditional residence hall double is defined as a double-occupancy bedroom with access to a bathroom shared with hall-mates. F 6/203-14

3 VII. STANDING COMMITTEES B. Finance and Asset Management Committee UW Seattle Approve Residence Hall, Single Student Apartment and Family Housing Rate Adjustments (continued p. 3) Traditional Residence Hall Double The proposed rates for a traditional residence hall double represents an increase of $231 for the academic year and compare favorably with the same room type at other higher education institutions (Attachment 1). For first-year students, a traditional residence hall double with Dining Level 1 represents a net increase of 3.5% ($279) from $7,959 in to $8,238 in For students returning to on-campus housing, a traditional residence hall double with Dining Level RR (the minimum required dining level), represents a 3.5% ($276) increase from $7,821 in to $8,097 in New Residence Hall Double The proposed rates for a new residence hall double represents an increase of $285 for the academic year and compare favorably with similar new room types at other Pac-12 institutions (Attachment 2). For first-year students, a new residence hall double with Dining Level 1 represents a 3.1% ($333) increase from $10,752 in to $11,085 in For student returning to on-campus housing, a new residence hall double with Dining Level RR (the minimum required dining level), represents a 3.1% ($330) increase from $10,614 in to $10,944 in Single Student Apartments The proposed rates for a single student apartment represent an increase that ranges from $327 to $339 for the academic year, depending on unit size (Attachment 3). For a single student apartment on a 12-month agreement, the increase ranges from $26 32 per month depending on unit size (Attachment 4). F 6/203-14

4 VII. STANDING COMMITTEES B. Finance and Asset Management Committee UW Seattle Approve Residence Hall, Single Student Apartment and Family Housing Rate Adjustments (continued p. 4) Family Housing and Stevens Court The proposed rates for Family Housing apartments reflect an increase of 2.8%. 2 For Family Housing, the increase ranges from $22 28 per month, depending on unit size and location (Attachment 5). The proposed room rates for Stevens Court, a nine-month apartment community, reflect an increase of 4.6%. Stevens Court has a higher proposed increase for the purpose of creating equity in our housing stock rates based on type, contract length, and ongoing refurbishments. Dining HFS is proposing a 2% rate increase for all dining levels (Attachment 6). This increase is to maintain the buying power of each level from year to year and offset price increases at the point of purchase as a result of increased expenses. The proposed increase is related to compensation requirements as they apply to dining staff and represents 1% of the increase with an additional 1% for the cost of food. The cost of food increase is based on an evaluation of actual increases experienced over the last 12 months and data from the Changes in Food Price Index, respectively (United States Department of Agriculture, Economic Research Service). Reserve Requirements and Debt Service Coverage Ratios The budget supported by the proposed rates allows HFS to: remain financially stable and exceed its Internal Lending Program (ILP) obligations to maintain a ratio of net revenues to annual debt service of at least 1.25:1; and meet minimum reserve requirements under the ILP financing agreement (the system is forecast to achieve a fund balance of $33 million on June 30, 2014, including a total reserve requirement of approximately $15.4 million). 2 The practice of maintaining Family Housing rates below those of the private market is reflected in this recommendation (Attachment 5). F 6/203-14

5 VII. STANDING COMMITTEES B. Finance and Asset Management Committee UW Seattle Approve Residence Hall, Single Student Apartment and Family Housing Rate Adjustments (continued p. 5) REVIEW AND APPROVAL On January 23, 2014, the operating budget and the need for adjustments to housing and dining rates were discussed with the Director s Roundtable of the Residential Community Student Association (RCSA). On January 29, 2014, the housing and dining rates were discussed with the RCSA General Council including representatives from residence halls and single student apartments. Letters detailing the rate proposal were sent to all residence hall and single student apartment residents on January 30, On January 22, 2014, letters were sent to all Family Housing apartment residents informing them of the proposed rates and inviting them to a community meeting on January 29, On January 29, 2014, a community meeting was held at Blakeley Village for all residents of Family Housing. On February 3, 2014, the proposal was discussed at Hall Council and single student apartment meetings. On February 5, 2014, RCSA voted to endorse the rate proposal. These proposed adjustments have also been discussed with the presidents of the UW Graduate and Professional Student Senate and the Associated Students of the UW as well as the UW Student Regent. The UW Vice President for Student Life has reviewed and approved this recommendation. Attachments 1. Room and Dining Rates of Comparable Universities, Traditional Double 2. Room and Dining Rates of Comparable Universities, Double with Bath 3. Proposed Residence Hall Academic Year Rates 4. Proposed Single Student Apartment Rental Rates 5. Proposed Family Housing Apartment Monthly Rental Rates 6. Proposed Academic Year Dining Rates F 6/203-14

6 UNIVERSITY OF WASHINGTON ROOM AND DINING RATES OF COMPARABLE UNIVERSITIES PAC-12 AND WASHINGTON PEER UNIVERSITIES TRADITIONAL DOUBLE ROOM Prelim University of Utah $ 7,035 $ 7,776 Arizona State University 7,968 8,187 University of Washington 7,959 8,238 Eastern Washington University 7,674 8,248 Central Washington University 8,252 8,665 Western Washington University 8,566 8,737 8,240 8,865 9,144 9,418 College Board * 9,498 N/A Oregon State University 9,324 9,510 University of Oregon 10,436 10,802 University of California, Los Angeles 12,552 12,772 University of Colorado 12,258 12,809 Stanford University 13,166 N/A University of Southern California 12,902 13,284 14,381 14,669 University of Arizona Washington State University Prelim University of California, Berkeley 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Many of the universities on this chart are in preliminary stages of setting rates for , and these rates should not be viewed as final. For comparative purposes, room costs for the schools named above are shown at the double room rate. Board plans vary depending on the types of programs offered. The board costs shown above reflect fixed dining plans ranging from approximately 7-16 meals per week (or an equivalent level on a point system) unless a higher minimum dining plan is required. The amount of board included for new residents at the University of Washington is the Level 1 Dining Plan, $2,457 for *Trends in College Pricing October 2013, College Board N/A: Not available at time of survey Page 1 F 6.1/ ATTACHMENT 1

7 UNIVERSITY OF WASHINGTON ROOM AND DINING RATES OF COMPARABLE UNIVERSITIES OFM AND GLOBAL CHALLENGE UNIVERSITIES TRADITIONAL DOUBLE ROOM Prelim University of Washington $ 7,959 $ 8,238 University of North Carolina at Chapel Hill 8,084 8,295 University of Arizona 8,240 8,865 University of Iowa 8,648 8,947 University of Virginia 9,650 9,987 University of Illinois at Urbana-Champaign 9,996 10,196 University of Michigan 9,996 10,296 University of Maryland, College Park 10,340 10, University of Massachusetts, Amherst Prelim 10,207 10,715 University of California, San Diego 10,629 10,779 University of Oregon 10,436 10,802 University of Connecticut 11,206 11,541 Rutgers University 11,578 11,934 University of California, Irvine 12,371 N/A University of California, Los Angeles 12,552 12,772 University of Colorado 12,258 12,809 University of California, Davis 12,790 13,046 University of California, Berkeley 14,381 14, ,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Many of the universities on this chart are in preliminary stages of setting rates for , and these rates should not be viewed as final. For comparative purposes, room costs for the schools named above are shown at the double room rate. Board plans vary depending on the types of programs offered. The board costs shown above reflect fixed dining plans ranging from approximately 7-16 meals per week (or an equivalent level on a point system) unless a higher minimum dining plan is required. The amount of board included for new residents at the University of Washington is the Level 1 Dining Plan, $2,457 for N/A: Not available at time of survey F 6.1/ Page 2

8 UNIVERSITY OF WASHINGTON ROOM AND DINING RATES OF COMPARABLE UNIVERSITIES DOUBLE WITH BATH Prelim University of Utah $ 8,121 Arizona State University (Tempe) 9,853 University of Arizona 10,374 Arizona State University (Downtown) Prelim Room 11,054 University of Washington Prelim Board 11,085 Washington State University 12,026 Oregon State University 12,312 University of Oregon (Barnhart) 13,052 University of Colorado 14,581 University of Southern California 14,970 University of California, Los Angeles 15,194 University of Oregon (Global Scholars) 15,889 University of California, Berkeley 16,233-2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 Ma ny of the uni vers i ti es on thi s cha rt a re i n prel i mi na ry s ta ges of s etti ng ra tes for , a nd thes e ra tes s houl d not be vi ewed a s fi na l. For compa ra ti ve purpos es, boa rd pl a ns va ry dependi ng on the types of progra ms offered. The boa rd cos ts s hown a bove refl ect fi xed di ni ng pl a ns ra ngi ng from a pproxi ma tel y 7-16 mea l s per week (or a n equi va l ent l evel on a poi nt s ys tem) unl es s a hi gher mi ni mum di ni ng pl a n i s requi red. The a mount of boa rd i ncl uded for new res i dents a t the Uni vers i ty of Wa s hi ngton i s the Level 1 Di ni ng Pl a n, $2,457 for F 6.2/ ATTACHMENT 2 Page 1 of 1

9 UNIVERSITY OF WASHINGTON PROPOSED RESIDENCE HALL ACADEMIC YEAR RATES INCLUDING DINING ALTERNATIVES Traditional Double Room Type1 Traditional Single Double w/ Private Bath2 Academic Year Room Rate Husky Card Deposit3 $5, $7, $8, Dining Level RR Deposit 2,316 2,316 2,316 8,205 9,501 11,052 2,457 2,457 2,457 8,346 9,642 11,193 2,808 2,808 2,808 8,697 9,993 11,544 3,162 3,162 3,162 9,051 10,347 11,898 3,513 3,513 3,513 9,402 10,698 12,249 4,215 4,215 4,215 10,104 11,400 12,951 5,652 5,652 5,652 11,541 12,837 14,388 Total Room, Husky Card and Dining Level RR Deposit Dining Level 1 Deposit Total Room, Husky Card and Dining Level 1 Deposit Dining Level 2 Deposit Total Room, Husky Card and Dining Level 2 Deposit Dining Level 3 Deposit Total Room, Husky Card and Dining Level 3 Deposit Dining Level 4 Deposit Total Room, Husky Card and Dining Level 4 Deposit Dining Level 5 Deposit Total Room, Husky Card and Dining Level 5 Deposit Dining Level 6 Deposit Total Room, Husky Card and Dining Level 6 Deposit Eighty-seven percent of residence hall rooms are included in these room types. To meet expected demand, triple rooms are planned for and comprise an additional 11 percent of the rooms, 6 percent in traditional residence halls and 5 percent in new residence halls. Limited other room types are available, such as new residence hall studios and singles. Double rooms in Mercer Court buildings A and B will be at the same rate as double rooms with private baths. A $108 Husky Card deposit is required of all residents and is refundable if not used. F 6.3/ ATTACHMENT 3 Page 1 of 1

10 UNIVERSITY OF WASHINGTON PROPOSED SINGLE STUDENT APARTMENT RENTAL RATES Contract Period Current Rate Proposed Rate $1,112 1,076 1,056 $1,144 1,107 1,087 Mercer Court C Studio Two Bedroom Three and Four Bedroom Five and Six Bedroom Academic Year Academic Year Academic Year Academic Year 11,028 10,665 10,449 10,800 11,367 10,998 10,776 11,136 Mercer Court D, E Studio Two Bedroom Three and Four Bedroom Five and Six Bedroom 1,112 1,076 1,056 1,092 1,144 1,107 1,087 1,124 Academic Year 7,218 7, Unit Cedar Apartments Studio Two Bedroom Four Bedroom Stevens Court A D, L Four and Six Bedroom Stevens Court J, K, M Four Bedroom F 6.4/ ATTACHMENT 4 Page 1 of 1

11 UNIVERSITY OF WASHINGTON PROPOSED FAMILY HOUSING APARTMENT MONTHLY RENTAL RATES Unit Current Rate Proposed Rate 2013 Private Market Rent 1 Percentage Below Market Laurel/Blakeley Village Two Bedroom $911 $937 $1,333 30% Three Bedroom 1,002 1,030 No Identical Product 44% Below 3 BR/1+ Bath Stevens Court J, K, M One Bedroom ,236 27% Small One Bedroom No Identical Product 21% Below Studio 1 Source for private market rent: Apartment Insights Washington, fourth quarter, Average rents for University District area. F 6.5/ ATTACHMENT 5 Page 1 of 1

12 UNIVERSITY OF WASHINGTON PROPOSED ACADEMIC YEAR DINING RATES Residential Dining Plan Cost Proposed Cost Annual Increase Value Plan Bonus Level RR $2,271 $2,316 $45 $2,316 0% Level 1 2,409 2, ,532 3 Level 2 2,754 2, ,919 4 Level 3 3,099 3, ,288 4 Level 4 3,444 3, ,690 5 Level 5 4,131 4, ,425 5 Level 6 5,541 5, ,940 5 F 6.6/ ATTACHMENT 6 Page 1 of 1

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