When the Vietnam War ended, the demand for on-campus housing declined rapidly. The annual bond payments did not.
For the next two decades the primary focus of the housing and dining system was simply to earn enough money to pay the debt. Repairs and improvements were postponed. Price sensitivity did not allow for rate increases, as all colleges and universities were in the same situation. The debt was completely paid off around the year 2000. Long Term Housing & Dining Master Plan In the new millennium, the trustees asked for a long-term plan, as it seemed that a planned approach would be a more prudent path forward than simply repairing what could be afforded when possible. With the bonds paid off and enrollment growing slowly over time, there would be borrowing capacity to renovate deteriorating properties. In 2004, Kamola and Sue Lombard Halls, historic buildings on E. University Way, that had been mothballed for many years and were in complete disrepair. The Board approved a complete renovation of both facilities and authorized $20 million in revenue bonds, to be paid back over 30 years. Also in 2004, the university contracted with a consulting firm to develop a 30-year housing and dining financial master plan. This plan identified the looming backlog of deferred maintenance at $150 million. The report forecasted what funds would be available and when, in order to re-invest in these assets, either through complete renovation or replacement. Essential to this forecast were assumed annual rate increases, and assumed occupancy rates. The university had been increasing rates over time, however very sporadically until 2006 when the long-term financial plan was put in place. After that time rate increases stabilized and became more predictable – helpful for planning for both the university and students.
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