(Approved by the Board of Regents, May 1, 1992; Revised and
approved by the Board of Regents, December 9, 2005)

  1.   Subject to limitations established by law, the Board of
     Regents is empowered to maintain the capital assets under
     its jurisdiction, including land, structures and
     infrastructure, for auxiliary and non-auxiliary programs.
  2.   Facilities renewal is the planned renovation,
     adaptation, replacement, or upgrade of the systems of a
     capital asset during its life span such that it meets
     assigned functions in a reliable manner.

  3.   Institutional spending for facilities renewal shall be
     targeted at 2% of the current replacement value (RV) of all
     institutional capital assets.  The allocation of funds and
     the selection of projects shall be approved through the
     operating budget process with the support of $15 million per
     year in Academic Revenue Bonds (for State buildings only)
     appropriated among institutions based on their pro-rata
     share of replacement value.  Operating funds shall be
     enhanced as follows at each institution until the 2% of
     replacement value spending level is reached:
       a.   Institutions will increase operating expenditures (from
          all sources) at an (annual 5-year average) increment of
          2/10th of 1% of replacement value.  Where tuition represents
          less than 25% of the State-supported budget, the increment
          for FR will be implemented at 50% of the aforementioned
       b.   To close the gap further, the Regents may require ½ of
          1% of the replacement value (RV) of any new building be
          allocated annually from the institutional operating budget
          as part of the cost of building start-up.

  4.   Institutions shall provide information on the amount of
     funds and their use to enable the Chancellor to monitor and
     report on the progress of the facilities renewal program on
     an annual basis to the Regents.
  5.   After approval of the budget request by the Board, the
     request for State funds to the Governor shall not be less
     than the previous fiscal year unless there are Systemwide
     funding constraints.  The Chancellor may recommend to the
     Board an institution's one-time only exception from policy
     or may recommend amendments to an institution's budget
     request to meet the facilities renewal policy, following
     recommendations by the President.

  6.   Furthemore, the Regents will approve an annual Capital
     Budget request to the State that includes, at a minimum, the
     FY2006 level of funding for building renovation and
     replacement ($70 million) adjusted for inflation.

  Replacement for:

   Policies of the former University of Maryland, included in a
   report titled Critical Capital Needs, fall 1985, which
   highlights facilities renewal requirements for non-auxiliary

   The Campus Funds Construction Program for non-auxiliary
   facilities and policy for the University Funded Construction
   Program for auxiliary facilities.

   Policy of the former Board of Trustees of State Universities and
   Colleges, included in a report titled Facilities Management: A
   Comprehensive Plan, as approved by the Finance and Management