Policies & Funding Guidelines

1. The IRDF Board of Allocation reviews and recommends funding for all IRDF loans.
2. There are three types of IRDF loans:
   • Micro-loans: Up to $100K; quarterly payback in 5 years or less by promissory note 
   • Mini-loans: Up to $250K; quarterly payback in 10 years or less by promissory note  
   • Standard IRDF mortgage: More than $250K; maximum loan term is 30 years; payments due quarterly
3. The maximum amount of a loan is determined by several factors, including availability of funds, servicing capability, and terms of the loan.
4. The IRDF Board of Allocation and MIT will seek to have the loan written at the minimum allowable interest rate. The rate will not be less than 3%.
5. The loan application should be made out for the entire project. Because renovation projects may also involve educational areas or affect the building envelope, it is recommended that a project grant be investigated along with applying for a loan.
6. The MIT Treasurer has final approval authority for all terms related to loans.

1. The IRDF Grant Advisory Board (GAB) reviews and recommends funding for all IRDF grants.
2. The IRDF Architectural Review Board (ARB) reviews and recommends reimbursement of expenses associated with historic preservation items of the grant.
3. Grant funds will not be issued until the grantable work is completed. 
4. Educational furnishings are expected to last a minimum of 5 years. Replacement of these furnishings will not be granted within a 5-year time frame. The Grant Advisory Board reserves the right to deny grant funding for replacement of any equipment before the end of its expected useful asset life.
5. Grant applicants must not be under any type of operational suspension to be eligible for grant approval and distribution. If there are any questions relative to suspension, the FSILG Office should be consulted.
6. In the event of any dispute, the applicant may appeal to the IRDF Grant Advisory Board.
7. The MIT Treasurer has final approval authority for all terms related to grants.
8. Member housing agreements must be signed with the FSILG entity, not MIT Housing.
   • Member housing agreements must be signed with the FSILG entity, not MIT Housing.
   • The organization must have housed FSILG affiliated students within the past two consecutive academic years.

MIT’s tax-exempt status is based upon its educational purpose and tax law requires that any funding allowed for general expenses is limited to the floor area of the building devoted to educational use. Thus, e.g. roof and HVAC expenses, must be limited to the “Educational Area Percentage” (EdArea%) of the building. MIT has developed educational area allocations based on floor area for each FSILG residence and on IRS case law guidance.

Educational Area Percentage (EdArea%) includes:

• Dedicated fully educational spaces, such as libraries and study rooms, as defined by space surveys (Insite plans) on file.
• 25 square feet per student, in recognition that the primary residential educational space for most students is in their bedroom.

The Educational Area Percentage is calculated by:
EdArea% = (Full_Room_Educational + (25 × #_Students )) ÷ Assignable_Space
Where:
Full_Room_Educational and Assignable_Space values are defined in the Insite Summary Table.
And:
For Educational Operating Grants (EOGs), the #_Students value is limited to FSILG affiliated students in residence during the academic year covered by the grant application period. #_Students includes the resident GRA and is determined by FSILG Office records (OMM forms).

For all Project Grants, the #_Students value is that of the residency maximum on the housing license.
There is a 27% maximum for total EdArea% per house.

Educational space allocations and Insite Plans are maintained by FSILG Cooperative, Inc. (FCI) and current copies are kept in each FSILG’s locker. Any request for an allocation change must be directed to the FCI to investigate. The GAB will review educational areas for all houses and, if requested, will review building-specific educational space definitions. No changes in prior assignable space calculations (as determined by Insite assessments) will be made unless in response to an IRDF-approved renovation or reconfiguration. Approved allocation changes become effective in the subsequent fiscal year.

1. Completed Educational Operating Grant applications must be submitted within 4 months of the conclusion of the FSILG’s (house corporation’s) fiscal year, unless directed otherwise. Any subsequent revisions and requests for additional documentation must be completed within 5 months of the conclusion of the FSILG’s fiscal year.
2. The IRDF Grant Advisory Board establishes an allowable percentage for reimbursement of eligible expenses each year.
3. The following percentages currently apply to grant eligible categories:
   • Eligible Educational Area Proportional Expenses – Reimbursed at 60% of EdArea% of actual cost of allowable expenses
   • Eligible Safety Expenses – Reimbursed at 60% of actual cost
   • Eligible Educational Items – Reimbursed at 75% of actual cost

1. Minor Project Grants are considered for projects with a grantable amount of more than $10,000 and up to $50,000.
2. Limited funds are available for Minor Project Grants each year. The IRDF Grant Advisory Board will establish the amount annually and announce the amount to the FSILG community.
3. Since limited funds are available each year, some grants may be denied. The Grant Advisory Board may put a cap on a project or limit the percentage of reimbursement for the project.
4. Minor Project Grant funds are distributed after project completion, based on receipts. Minor Project Grants may be approved before work starts; however, no additional funds will be granted in the event of a cost overrun. If work proposed and approved is not completed within 2 years, the grant will be void and the organization will need to re-apply for funding.
5. Minor Project Grants may be partially funded, deferred, or rejected. Partially funded and deferred requests will be reconsidered for the following fiscal year if the applicant desires.
6. The following percentages currently apply to grant eligible categories:
   • Educational Area Proportional Expenses – Reimbursed at 75% of EdArea% of actual cost of allowable expenses
   • Eligible Safety Expenses – Reimbursed at 75% of actual cost
   • Eligible Accessibility Improvement Expenses – Reimbursed at 75% of actual cost
   • Eligible Educational Items – Reimbursed at 75% of actual cost

1. Major Project Grants are considered for projects with a grant request greater than $50,000. These grants are evaluated and treated separately from the process for Minor Project Grants described in Section B above.
2. Major Project Grant distributions will not exceed 90% of IRDF contributions associated with that FSILG. The remaining 10% will be available for other IRDF programs that benefit the entire FSILG community. FSILGs are responsible for covering 100% of grant processing fees.
3. The following percentages apply to grant eligible categories:
   • Educational Area Proportional Expenses – Reimbursed at 100% of EdArea% of actual cost
   • Eligible Safety Expenses – Reimbursed at 100% of actual cost
   • Eligible Accessibility Improvement Expenses – Reimbursed at 100% of actual cost
   • Eligible Educational Items – Reimbursed at 100% of actual cost
   • Eligible Historic Preservation & Restoration – 100% or as approved by the ARB
4. The following requirements apply to capital campaigns:
   • FSILGs conducting a capital campaign with the goal of using funds toward a Major Project Grant must designate a 5-year window indicating when their campaign commences and ends, and synchronized with MIT’s fiscal year, by formal notification to the GAB. Reach-back (using donations from prior years) is not allowed. Flexibility may be granted upon approval by the GAB, MIT Division of Student Life and Office of the Vice President for Finance.
   • FSILGs are required to share campaign materials with the GAB. The GAB and MIT Office of the Recording Secretary reserve the right to modify verbiage related to IRDF donations that will be designated toward Major Project Grants.
   • After the conclusion of MIT’s fiscal year, each FSILG with an active campaign may request the names of IRDF donors whose gifts are associated with that FSILG and the total amount given by those donors. No more detailed data will be provided.
5. The following are applicable administrative procedures:
   • Distributions must be completed within 5 years of approval by the IRDF Grant Advisory Board.
   • Grant distribution calculations will be done at “fiscal year boundaries” only after the official closing of MIT’s book for the fiscal year (June 30).
   • All grant distributions will be made after the conclusion of the associated capital campaign window.
   • For Major Project Grants that are associated with a new IRDF loan, the grant distribution will be disbursed directly to the organization. The organization may independently remit any portion of the grant distribution to pay down open loans.
6. After receiving a Major Project Grant, the FSILG must submit an IRDF Annual Certification form each year for 20 years after grant approval, attesting that the project’s permitted purposes continue and the building continues to house MIT students. If the usage changes before the end of the 20-year period, the IRDF must be reimbursed a pro-rated amount of the total Major Project Grant distribution(s).

IV (3). Interim Action. Chapters that default on MIT IRDF loans and/or grants are subject to loss of Good Standing, Approved Institute Housing, and/or Institute Recognition.

The following expenses for and related to construction may be eligible for reimbursement. To be eligible, the construction shall be required by, and compliant with, the current edition of the Massachusetts State Building Code (780 CMR):

• Architectural, engineering, historic preservation consulting, project management, and construction management fees related to the construction project will be reimbursed at the same percentage as the overall project (e.g., if 50 percent of the construction cost is determined to be eligible for an IRDF grant, then 50 percent of the fees will be eligible for reimbursement)
• Abatement or mitigation of hazardous materials uncovered during construction, where required to comply with federal or state regulation
• New plumbing work where required to meet code and maintain building habitability (e.g., to increase plumbing fixture count to code minimum)
• New heating plant and distribution systems where required to meet code and maintain building habitability, provided that they do not adversely affect the historic character of the structure
• New electrical systems where required to meet code and maintain building habitability, provided that they do not adversely affect the historic character of the structure
• Site utilities systems where required by code, including new fire protection service mains and ground water infiltration/recharge systems

The following expenses for and related to construction of life safety system improvements may be eligible for reimbursement. To be eligible, the construction shall be required by, and compliant with, the current edition of the Massachusetts State Building Code (780 CMR):

• Means of egress improvements, including new stairs, railings, exterior walkways, and the like
• Fire-rated partitions and separation assemblies to isolate means of egress elements from other parts of the structure
• Fire door assemblies, including fire-rated doors, frames, and hardware
• Fire suppression systems, including sprinklers and kitchen hood extinguishing systems (Ansul)
• Other firefighting equipment, including standpipes, hoses and connections, and manual fire extinguishers
• Smoke control systems, including emergency smoke exhaust and draft curtains
• Emergency lighting, including egress path lighting and exit signage
• Fire alarm systems and equipment

The following expenses for and related to construction of accessibility improvements may be eligible for reimbursement. To be eligible, the construction shall be required by, and compliant with, the current edition of the Massachusetts State Accessibility Code (521 CMR “MAAB”) and applicable federal accessibility regulations:

• Elevators and lifts, including enclosing shafts and construction
• Ramps and sloped walkways
• Construction of new accessible facilities where required, such as new toilet rooms
• Alterations to achieve accessibility in existing facilities, including wider doors, kitchen and bath alterations, new handrails, signage, and the like

The following expenses for educational facilities and equipment may be eligible for reimbursement:

• Construction of new study rooms and other spaces that are exclusively used for educational purposes
• New broadband data infrastructure, including cabling, servers, routers, and other devices as part of a community project
• New educational furniture, including desks, desk chairs, white boards, study room furniture, and other furnishings used exclusively for educational purposes
• Desktop computers, displays, printers and other IT hardware for shared educational use
• General construction costs, exclusive of approved qualified expenses, may be reimbursed at the same ratio as the percentage of educational area in the structure, subject to receipt of a written opinion acceptable to the IRDF
• Makerspace equipment is limited to Device Class #1 3D printers as classified in MIT SOG EHS-0076 Shop & Makerspace Safety (specifically fused deposition modeling [FDM] printers using materials such as ABS and PLA), with appropriate local exhaust ventilation; all other equipment—including hand tools, shop tools, and laser cutters—is ineligible

Certain work associated with the preservation and restoration of the building envelope and other contributing historic features of eligible structures may be eligible for reimbursement. To be eligible, the structure must comply with at least one of the following:

• Be on the State or National Register of Historic Places.
• Be in a Historic Landmark district established and administered by the local municipality and thus subject to a preservation restriction.
• Be subject to Cambridge Historical Commission, Boston Landmarks Commission, or Brookline Historical Commission review, even if not located within a historic district.

To be eligible for IRDF historic preservation reimbursement, all of the following conditions must be met:

• Construction shall comply with the most current version of the Secretary of the Interior’s Standards for Treatment of Historic Properties (the referenced design standard) and applicable state and municipal historic preservation regulations.
• A pre-construction application must be reviewed and approved by the IRDF Architectural Review Board. The purpose of the pre-construction review is to confirm that the work complies with the referenced design standard and that required documentation will be available for final review of the grant.
• The work must be designed and overseen by a design professional with expertise in historic preservation (the Preservation Consultant). The Preservation Consultant need not possess a specialized credential in historic preservation; architects and other designers who have expertise in historic preservation work (as demonstrated by a record of past successful historic restoration projects) will be accepted as Preservation Consultants. Projects undertaken without the involvement of a Preservation Consultant will not be eligible for historic preservation cost reimbursement.

When evaluating a project for eligibility for historic preservation reimbursement, the work will be reviewed in its totality for compliance with the intent of the referenced design standard; even if a grant is not requested for some specific elements, the treatment of all elements will be reviewed for historic consistency. The Preservation Consultant shall keep sufficient records during construction, including photographic documentation, to demonstrate compliance with the referenced design standard. Copies of these records shall be submitted with the grant application.

Subject to compliance with the indicated requirements, the following work will be eligible for historic preservation reimbursement:

• Repairs to and restoration of historic exterior building fabric, including all exterior elements and supporting substructure (foundations), when performed in compliance with the referenced design standard.
• To the greatest extent possible, existing building fabric shall be retained and restored rather than replaced. Replacement of existing components should be planned only when restoration is not practical.
• Masonry repointing and patching shall be performed using historic mortar and patching mixes as appropriate for the substrate. Standard pre-mixed mortars are not acceptable for most applications.
• Applied interior or exterior masonry coatings (water repellents, spray insulation, and similar products) are not permitted.
• Window repairs and replacement shall match the existing profiles as closely as possible; if aluminum replacement windows are proposed, exterior muntins and panning details shall mimic the original.
• An exterior element is any part of the structure that is exposed to rain water, terminating at the ground plane.
• Repairs to and restoration of damaged contributing historic interior building fabric, including period architectural millwork and detailing, plaster ornamentation, lighting fixtures, and the like. Interior work need not be subject to a preservation restriction to be considered for reimbursement; complying restoration of any interior period detailing that contributes to the historic nature of the structure may be eligible for reimbursement.
• Replication of damaged or missing period detailing and finishes.
• New wood and stone flooring that is consistent with the historic character of the structure.
• Authenticated historic restoration landscaping (i.e., restoration of landscaping to its original design).

The following costs are not eligible for reimbursement by the IRDF:

• Legal fees and fundraising costs
• Financing costs, including loan interest and loan origination costs
• Interior design, kitchen design, and landscape design consulting services
• Furniture moving and storage fees
• Cost of temporary housing for displaced students during construction
• Building additions, except additions that exclusively serve as a required means of egress, for an accessibility improvement, or that are exclusively used for educational purposes
• Any exterior construction that in the sole opinion of the IRDF does not meet the Secretary of the Interior’s standards for historic preservation, even if permitted by local authorities having jurisdiction
• Kitchen renovation expenses, except for work that is required to achieve accessibility
• Kitchen appliances and equipment, except for kitchen exhaust hood fire suppression system(s)
• Bathroom renovation expenses, except for work that is required to achieve accessibility or meet current plumbing code requirements
• Movable furniture and equipment, except educational furniture and equipment listed above
• Carpet and area rugs
• Recreational furniture and equipment
• Air conditioning equipment and distribution ductwork
• Roof decks and related construction
• Alternative energy systems, including thermal solar, rooftop PV, windmills and the like
• Asphalt and concrete paving, except walks and ramps required for accessibility or egress
• Landscaping work, except authenticated historic restoration landscaping