Commonwealth at the lowest possible cost. Responsive to such solici-

tation the Division of Purchases has received a joint proposal of

C. E. Pennington, individually, and C. E. Pennington Company, Inc., a

responsible contracting corporation of Lexington, Kentucky, to design

and construct such housing building and requisite appurtenant facili-

ties (excluding equipment and furnishings) for the fixed sum of

$4,850,000 and it has been estimated by the Division of Purchases that

the cost of equipment and furnishings will be $575,000. It is urgently

required that this Board go forward immediately with the financing of

this housing project in order that it may be completed and ready

for occupancy at the beginning of the 1979/80 Academic Year in

September 1979. Execution of said contract is authorized.

          (D) Consistent with a new federal program for the con-

servation of energy, the University has applied to the United States

Department of Housing and Urban Development ("HUD") for a 3% loan

to finance the cost of substantial reconstruction of three build-

ings which constitute parts of the University's Housing and Dining

System, in that all windows will be taken out and new thermal

windows, together with thermostat control valves, installed at

a cost, including administrative expense and the expense of

issuing bonds, estimated to be $284,000. The University has

been notified that funds for this project have been reserved by

HUD and has submitted a formal application for the issuance of a

HUD Loan Agreement.   This financing could have been included in



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