Office of Institutional Resources and Research

University Lease Procedure

University Lease Policy and Procedure

The Office of Institutional Resources and Research is responsible for the following:

Securing all leased real property for the University
Renting out of University real property (lease-outs)
Obtain all required approvals as needed from the MUSC Board of Trustees, South Carolina Budget and Control Board (BCB), South Carolina Joint Bond Review Committee (JBRC) and the Commission on Higher Education (CHE)
Identify and assist in the selection of leased property

The University will follow applicable State of South Carolina laws, rules, and regulations in all leasing activity. The University's procedures are structured to meet the requirements of the Board of Trustees of the South Carolina Commission on Higher Education and the State Budget and Control Board.Procedures for Real Property Lease AgreementsThe Department requesting leased space must complete the Space Request Form and obtain the proper signatures for approvals indicated on the form.

MUSC Board of Trustees Required Approvals

Leases where value is less than $50,000 (including options) are not required to be reported to the Board of Trustees.
Leases where the value exceeds $50,000 but less than $150,000 (including options) must be reported to the Board of Trustees for information.
Leases where the value exceeds $150,000 (including options) must receive prior approval from the Board of Trustees.
All Lease-out agreements regardless of amount are reported to the Board of Trustees for information or approval depending on the lease term amount.

State of South Carolina Required Approvals
Commission on Higher Education(CHE)	Less than $25,000 annually: Exempt $25,000 - $100,000 annually: CHE Staff Approval Required Over $100,000 annually: Full CHE Approval Required
Joint Bond Review Committee(JBRC)	Less than $25,000 annually: Exempt $25,000 - $1,000,000 total lease term: JBRC Staff Approval Required Over $1,000,000 total lease term: Full JBRC Approval Required
Budget & Control Board (BCB)	Less than $25,000 annually: Exempt $25,000 - $1,000,000 total lease term: BCB Staff Approval Required Over $1,000,000 total lease term: Full BCB Approval Required

State of South Carolina Lease-out Policy
State Agency to State Agency Lease-out (BCB)	Less than $25,000 annually: Exempt $25,000 - $1,000,000 total lease term: BCB Staff Approval Required Over $1,000,000 total lease term: Full BCB Approval Required
Non Agency Lease-out (BCB)	Less than $50,000 total lease term: BCB Staff Approval Required Over $50,000 total lease term: Full BCB Approval Required
* CHE does not approve Lease-outs regardless of the amount or term.

When it is necessary for the University to lease space from outside of MUSC, OIPSM should be notified nine months in advance of the date the property is needed. The Leasing Manger will work with you through the final execution of the lease.

A time frame for planning purposes is six months. A complex and/or capital/major ($1 million over five years) lease could take as long as nine months to traverse the full approval process. Each of the approving entities operates on a different meeting schedule. Each also delegates different levels of authority to its staff. Even the simplest lease requiring approvals by the MUSC Board of Trustees, SC Commission on Higher Education (CHE), Joint Bond Review Committee (JBRC), and B&CB will take an absolute minimum of three months to execute.

When it is necessary for the University to lease space from outside of MUSC, OIPSM should be notified nine months in advance of the date the property is needed. The Leasing Manger will work with you through the final execution of the lease.

A time frame for planning purposes is six months. A complex and/or capital/major ($1 million over five years) lease could take as long as nine months to traverse the full approval process. Each of the approving entities operates on a different meeting schedule. Each also delegates different levels of authority to its staff. Even the simplest lease requiring approvals by the MUSC Board of Trustees, SC Commission on Higher Education (CHE), Joint Bond Review Committee (JBRC), and B&CB will take an absolute minimum of three months to execute.

Leasing Procedure

A request for leased space is made to the University Leasing Manager (ULM), Rachael Jones, 792-5996 or jonesrak@musc.edu. (Lease Request Form)
The ULM provides the requestor with a Third Party Lease Information Sheet and a Lease Request Form to be completed and returned.
The State is informed that there is a need for lease space and advertises to locate a suitable property. Potential lease properties will be narrowed down to one or two.
The ULM will engage Engineering and Facilities and Risk Management to perform a Pre Occupancy Assessment for health and safety and building code regulation compliance.
A final property is selected and lease negotiated by the State and ULM.
Automatic Transfer Payment Form is completed by the requestor to set up monthly lease payments. (Automatic Transfer Authorization Form)
The ULM will secure MUSC Board of Trustees (BOT) and all necessary approvals from the State of South Carolina. (MUSC Leasing Limits)
Once required approvals have been received, the State will prepare the lease.
The MUSC Legal Office reviews and approves lease.
The State obtains Authorized Landlord signatures. The ULM then obtains the signature of the University’s Vice President for Finance & Administration. Signatures on behalf of the Medical University of South Carolina must be by an Officer. At no time will the signature of anyone other than an MUSC Officer be accepted.
The ULM returns the signed lease contracts to the State for final signature by the State’s Leasing Officer. No contract exists until the lease is signed by the State Leasing Officer.

Lease Contact Information: Office of Institutional Resources and Research
Rachel Jones, Leasing Manager
843 792-5996
jonesrak@musc.edu

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