The consequences of PBHA losing its status as a student group include the loss of $750,000 in University funding and their eviction from Phillips Brooks House.

Epps said he will grant a "partial exception" to PBHA by creating "special trustees" for the board.

"I now understand very well why they want a formal board," said Epps.

His proposal, as outlined in a letter to The Crimson (please see page 10), said that the trustees would "participate fully in its deliberations, offer advice on fund-raising and fiscal accountability and strengthen organizational memory."

Epps also said that he was willing to grant PBHA a two-year "period of experimentation." If a review at the end of this year is positive, he "will be happy to grant the full exception [of having voting non-student members]."

Ehrlich said that Epps' willingness to compromise is promising, but that he does not wish to comment further without the written proposals from the dean. The "partial exception" offered by Epps however, is not a substantial change, he said.

"I, too, hope for compromise, provided that certain principles are maintained," Ehrlich said.

"These principles are the full participation of all trustees--full participation means that all are voting members--and accountability, that is necessary in the decision-making process," he said.

PBHA has also presented its own counter proposal, that there be a majority of students on the governing board so that there would always be undergraduate control.

Kidd declined to comment on new developments.

"I don't think it's wise to conjecture on that until we have discussed things with the students," said Kidd.

But other members involved in PBHA and the administration said they felt tentatively optimistic.

"There has been movement toward a solution," said Ehrlich.