Page 2 - Cla Delta Spotlight - Fall 2013

The Campaign for California Delta ou may be thinking, “Why do we rebuilt the House. Pledges were made for traffc areas. It is certainly not the case that Yneed to undertake a campaign when fve years and all are almost totally paid in the House can be forgotten now that it is we have already rebuilt our House?” The full. This campaign is imperative to pay built. reason is, though we had an extremely down our debt burden and thereby provide Be assured that the House Corporation successful capital campaign, raising almost a secure, sustainable fnancial footing and Board is taking all possible measures to $2 million for the initial construction of the ensure we continue to own our Chapter place the chapter on a secure fnancial House, we still have considerable loans. House. footing, not just fundraising mindlessly. A The project costs came to $4 million. We have two major priorities. First, market survey showed that an eight percent With the generous pledges from the frst making sure we can cover monthly expenses rent increase was appropriate this year to campaign, and the payments we have made in the short term, while also paying down align with the rest of USC student housing since, today we owe just over $1.8 million the debt. The second, after reducing our and that in the surrounding area. We are of mortgage debt. debt, is to build a nest egg for the extensive thinking long-term. We need to put the Our monthly mortgage payments renovations that will be required every 15 House in a fnancially stable position for are just over $12,000. Expenses such as to 20 years. High-occupancy residences the future. Alumni occasionally ask how utilities, property taxes and maintenance like our House undergo more wear and tear much debt the House can sustainably carry average about $18,000 per month. In all, than regular homes. We are already seeing over the long haul. Honestly, the answer is total expenses, including loan payments, an end to the “maintenance honeymoon” zero. So, instead of sending debt payments run right around $30,000 per month. Our found in new structures. To prepare the to the bank, we need to build a capital fund revenue from rent payments averages House for the new school year, expenses to cover a major remodel when the time $23,000 per month. The difference has were far higher than previous years to comes. been covered by pledges made by alumni cover air conditioning, plumbing and sewer during the original capital campaign that repairs plus carpet replacement in high- Projected Cost USC Loan #2 Current Debt and Current Debt $165,208 Breakdown 9.1% Current Loans Paid-To-Date $1,825,781 $2,119,041 City National Bank 46.3% 53.7% USC Loan #1 $906,161 $754,412 49.6% 41.3% Monthly Expenses Monthly Income $30,173 $23,110 Utilities, insurance, Rent property taxes, $22,588 Debt Service maintenance 97.7% $12,116 $18,057 40.2% 59.8% Parking/Laundry Fee $522 | 2.3% “As excited as I was to be a Virginian transplant at USC in 1978, I started off like a fsh out of water. I can’t overstate how important it was that Cal Delta gave me a place to belong and my brothers and pledge class helped inspire my growth as an entrepreneur. Cal Delta was there for me, and I’m proud to step up with my Cal Delta brothers now to return the favor.” – Mark Jozwiak ‘82 Donor, 1848 Society