More than just a landlord
Graham Stiles | 9/23/2003 Drive across many college campuses today and you will probably see some beautiful and well-maintained fraternity and sorority houses. You are probably even more likely to see some run down and neglected houses. What is the difference between the two? In almost every case the well maintained houses have a functioning and involved house corporation that manages the house effectively.
Regardless of what type of housing a chapter has, a house corporation is a must not only to manage current assets and operations, but to also plan for future housing needs. Many chapters are forced to pass up great opportunities due to the fact that there is no housing corporation because they thought there was no need if they did not have a house. Planning in advance for these situations will create results.
House corporation basics
The relationship of the house corporation to the collegiate chapter is that of landlord and tenant. The analogy is apt, for the corporation is legally responsible for paying the mortgage, taxes, and liability insurance, while the chapter is responsible for paying rent and fees which provide the necessary income so that the corporation can meet its obligations.
However, this relation is more than that of a conventional landlord and tenant. It should be a close and complementary relationship. The house corporation exists because it is needed to perform functions which the chapter cannot satisfactorily or legally perform for itself.
This relationship will not be complementary or cooperative unless there is communication. This is the key that will enable the corporation and the chapter to meet their respective responsibilities in managing the property in which they both share an interest. The responsibility of this management will further be shared with the house director, should there be one. Together, these people will do what has to be done to maintain and operate the facilities properly.
It is not recommended that undergraduates serve on the house corporation board, but this is not to say that they should not have input. At least once during the school year, the board should meet with the chapter to explain what the house corporation does, how the income is spent, and answer questions. It is suggested that the corporation formally present its annual report at this time.
Equally important is a meeting with the new members. This is an opportunity to establish a positive relationship between the chapter’s future members and the corporation’s board of directors, and to develop a respect for the property, its history, and its significance to the chapter.
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