R702-1. Purpose: To provide guidelines and requirements for institutional requests to program, plan, design, or construct a facility using non-state funds.

R702-2. Definitions

2.1. Architectural Programming: A formal decision-making process used to identify and define the goals and uses of a capital project and to define the scope of work and cost prior to design or construction.

2.2. Capital Development: Has the same definition as Utah Code 63A-5-104(1)(a).

2.3. Non-State Funded Project: Any capital development project whose source of funding comes from anything other than state funds appropriated by the Utah State Legislature. 

R702-3. Requests for Non-State Funded Projects: Except as provided in section 702-4, the Board of Higher Education shall review and authorize institutional requests for non-state funded projects that require Building Board or Legislative approval before the requests are submitted to those bodies.  Such requests shall be based upon master planning requirements of Regent Policy R706, Capital Facilities Master Planning. Types of projects requiring Board approval include:

3.1. Projects Funded from Student Fees, Contractual Debt, or Disposal or Exchange or Capital Assets: Proposals for non-state funded projects funded in whole or in part from an adjustment in student fees, incurring of contractual debt, or the disposal or exchange of land or other capital assets shall be approved by the institutional Board of Trustees prior to submission to the Board of Higher Education.

3.2. Projects Funded from Private Sources: Projects funded through private sources or a combination of private sources and other non-state funds, not meeting the requirements of section 702-4, shall be approved by the institutional Board of Trustees and the Board of Higher Education. 

3.2. Projects for which Legislative Revenue Bonding Authorization is Required: Institutions shall submit non-state funded projects requiring revenue bonding to the Board of Higher Education for approval as required by Board Policy R590, Issuance of Revenue Bonds for Higher Education.

R702-4. Delegation of Authority to Approve Certain Projects: The Board of Higher Education delegates the authority to approve non-state funded projects to institutional Boards of Trustees in the following limited circumstances:

4.1. Projects Funded from Private or Institutional Sources: Institutional Board of Trustees may approve a project funded through private sources or a combination of private sources and other non-state institutional funds if the project meets the following conditions:

4.1.1 The total cost of the project including design and construction does not exceed $5,000,000;

4.1.2. New or additional operation and maintenance costs for the facility are identified by the institution, a plan is provided for the ongoing payment of those costs, and the plan will not require any additional state funding;

4.1.3. No student fees will be used in any part of the design or construction of the facility;

4.1.4. No revenue bonds are required to be issued to design or construct the facility; and

4.1.5. The project will not require incurring contractual debt or the disposal or exchange of land or other capital assets.

4.2. Requests to use Donated or Institutional Funds for Planning and Design: Institutional Board of Trustees may approve requests to use donated or institutional funds for planning and design of proposed non-state funded project.

4.3. Reporting: Institutions shall report all projects approved under this section at the next regularly scheduled Finance and Facilities Committee meeting. 

R702-5. Operating and Maintenance (O & M) Costs on Non-State Funded Projects: A non-state funded project will be eligible for state appropriated O & M when the use of the building is primarily for approved academic and training purposes and associated support and is consistent with the institution’s facilities master plan requirements.

5.1. Excess Space: If an academic facility, funded in whole or in part by non-state funds, is built to a scale larger than Board approved programmatic or facilities planning requirements, the excess space may not qualify for state appropriated O & M funding. The Board will consider the eligibility of the institution to receive state O & M funding for such excess space on a case-by-case basis.

5.2. Non-Academic Space: In most cases, a non-state funded project that  is not primarily for approved for academic and training purposes or associated support will not be eligible for state appropriated O & M funding. If the institution requests to the Board of Higher Education to allow state-funded O & M, it shall include a detailed statement showing how space types included in the facility will relate to important institutional activities.

5.3. O & M Funding Sources for Projects Not Eligible for State Appropriated O & M: In those cases where property acquisitions, construction, or remodeling projects are not eligible for state appropriated O & M funding, the institution’s proposal must explain how it will pay the ongoing O & M as defined by the State Building Board. When making arrangements for ongoing O & M funding, institutions shall give first priority to separate non-state funding assured through private contracts or an O & M endowment established by a private donor; second, an institutional O & M funding plan with additional revenue to support the new space to be credited to its O & M accounts.

R702-6. Architectural Programming of Non-State Funded Projects: A non-state funded project does not require approval by the Board of Higher Education for the architectural programming of the facility.

Approved January 20, 2017; amended July 21, 2017 and January 15, 2021.