Permitted Purposesfor Eligibility
for Reimbursement in IRDF Grants

DRAFT 1/1//2019

Note: This legal language for permitted purposes is still being reviewed by MIT. The goal is to have this approved in a month or two at most.

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Permitted Purposes.  The FSILG will receive reimbursements by IRDF Grants solely for these expenditures for these purposes:

1) to construct, renovate, furnish or equip areas of the house that are used solely for educational purposes
2) to make the house accessible to students with disabilities
3) to construct, upgrade, and maintain the life safety systems
4) to renovate or restore historic elements of the residence, as approved by the IRDF Architectural Review Board
5) to reimburse a portion of annual operating costs to support education, life safety, or accessibility.   

These expenditures and any property resulting from them are referred to as the "Project".


a.         House areas used solely for educational purposes.
Areas of the house will qualify as being used solely for educational purposes if the areas are used by students directly and exclusively in activities that are necessary or appropriate for students' fulfilling the requirements of the degree-granting programs in which they are enrolled at MIT.  An area will not qualify as being used solely for educational purposes if the area is or will be used for dining, recreational or social activities or for any purpose other than the conduct of activities that are necessary or appropriate for students' fulfilling the requirements of the degree-granting programs in which they are enrolled, regardless of whether the area is also used for educational purposes.


b.         House areas used solely for making the house accessible to students with disabilities.  
Areas of the house will qualify as being used solely for the purpose of making the house accessible to students with disabilities if the construction, renovation, furnishing or equipping is required by a federal or state law or regulation relating to access by students with disabilities to and within the house, is necessary or appropriate in connection with the legally required construction, renovation, furnishing or equipping of the house or is otherwise conducive to access to and within the house by students with disabilities.

c.         Method of determining portion of Grant that is used solely for Permitted Purposes
(1)       Larger program involving only expenditures solely for Permitted Purposes. If the Project is part of a larger program of expenditures that only involves expenditures qualifying as solely for Permitted Purposes, all expenditures for that program will be treated as solely for Permitted Purposes.

(2)       Larger program involving expenditures solely for Permitted Purposes and other expenditures -- specifically identifiable.  If the Project is part of a larger program of expenditures that also involves expenditures that are not solely for Permitted Purposes but part or all of the expenditures that will be used solely for Permitted Purposes is readily determinable, in MIT's sole discretion, from contracts, invoices or other documentation provided by the contractors or vendors, those readily determinable amounts will constitute expenditures solely for Permitted Purposes.

(3)       Larger program involving expenditures solely for Permitted Purposes and other expenditures -- not specifically identifiable.  If the Project is part of a larger program of expenditures that also involves expenditures that are not solely for Permitted Purposes and part or all of the expenditures that will be used solely for Permitted Purposes is not readily determinable from contracts, invoices or other documentation provided by the contractors or vendors, the total expenditures will be allocated between expenditures that are solely for Permitted Purposes and those that are not in the following manner.

(a)         Costs of constructing the house. The costs of constructing the house that qualify as solely for Permitted Purposes will be determined by multiplying the total costs of constructing the house by a fraction, the numerator of which is the number of square feet in the house that will be used solely for Permitted Purposes and the denominator of which is the total number of square feet in the house.

(b)         Costs of renovating the house. The costs of renovating the house that qualify as solely for Permitted Purposes will be determined by multiplying the total renovation costs by a fraction, the numerator of which is the number of square feet in the portion of the house being renovated that will be used solely for Permitted Purposes and the denominator of which is the total number of square feet in the portion of the house being renovated.

(c)         Furniture and equipment. If the expenditures for furniture and equipment (other than fixtures that constitute part of the costs of constructing the house) that qualify as solely for Permitted Purposes cannot be determined under Section 3.d(1) or (2), the expenditures will not qualify as solely for Permitted Purposes.

(d)         Alternative methods.  If, in its sole discretion, MIT determines that the particular facts and circumstances pertaining to expenditures make it possible to determine the amount expended solely for Permitted Purposes more reliably under a method different from the other methods described in this Section 3, MIT may apply such an alternative method.

 

Educational areas and access by students with disabilities

Grants from the IRDF to FSILGs may only be made for expenditures for constructing, renovating, furnishing or equipping educational areas of ILG residences and making the residences accessible to students with disabilities and enhancing historic preservation. In general, educational areas are rooms that serve solely an educational function, as distinguished from dining, sleeping, and recreational areas.  Examples of educational areas are: computer labs; seminar rooms; study rooms; libraries; and engineering and graphic design labs.

Grant funds may not be used for any non-educational areas or non-educational uses, except that they may be used to make the residence accessible to students with disabilities and for historic preservation or restoration.  Any mixed use of the educational areas funded by a grant is prohibited.  For example, in order for the library to be considered an educational area, it cannot also be used for recreation.  Where an expenditure is part of a larger program that also involves non-educational areas, an allocation to the educational area must be made.  This will usually be done on the basis of square footage, unless another method is more appropriate.

Examples

An ILG wants to add a 5,000 square foot library and a 15,000 square foot social hall to its residence. The library is used exclusively for educational purposes.  The portion of the costs allocable to the library will usually be determined by multiplying the total construction costs by a fraction, the numerator of which is the square footage of the library (5,000) and the denominator of which is the total square footage of the areas being added (20,000).  MIT generally may fund up to 25% (5,000/20,000) of the construction costs through grants.  If the contractors' and suppliers' bids contain information indicating that the actual costs of the two components of the project should be allocated other than on the basis of square footage, allocation based on the actual costs of the separate components may be appropriate.

The amount of grant funds that may be used to purchase furniture, fixtures and equipment may be specifically allocated to those items purchased for the educational areas.  For example, an ILG wants to furnish a new library and social hall.  The residence is 50,000 square feet, 10,000 square feet of which are solely educational areas.  The ILG spent $100,000 to furnish the library and social hall, of which $50,000 was spent on furnishing the library.  MIT could fund up to $50,000, since that was the amount spent to equip and furnish the educational areas, notwithstanding the fact that MIT could fund only 20% of construction or renovation costs.

 
Revision 11/21/2019