Photo by: UF Digital Collections
The chapter house is an important aspect of any fraternity or sorority. Brothers and sisters live in the chapter house, conduct formal meeting and initiation, host social and philanthropic events, and use it as a central place of congregation. For every fraternity and sorority with a house, establishing a strong house corporation is vital to the well-being of the property, it’s residents, and the chapter as a whole.
What A House Corporation Is
A house corporation is a not-for-profit corporation created and run with the sole purpose of managing the chapter’s house and property. If a chapter owns their house, the house corporation is normally the legal owner of the property and buildings. If a chapter rents their house, the house corporation may or may not be involved in the rental process and agreement (this varies depending on the rental situation).
To manage and maintain the property, the house corporation’s main source of revenue is the collegiate chapter. Collegiate members usually pay a house corporation fee (also known as a parlor fee or house assessment) that is separate from their chapter dues. As the house corporation is a separate entity, their finances are also divided from those of the chapter. House corporation money is used to maintain the house and property and pay for insurance, taxes, and any additional property-related expenses (loans, legal fees, etc.).
Who Makes Up A House Corporation
The house corporation includes any collegiate and alumni members who have paid their house corporation dues. The house corporation board, established to represent the members and run the corporation, is made up of alumni volunteers (both area and chapter alumni) and collegiate members such as the chapter president, treasurer, and a board delegate selected by the chapter.
The reason for the collegiate member involvement is to maintain communication between the house corporation board and the chapter. As the alumni volunteers of the board are just that, volunteers, it’s easier for collegiate members to attend board meetings and report to the chapter than for alumni to attend both the board and chapter meetings. Additionally, collegiate board members act to voice the needs, opinions and preferences of the collegiate members.
The Purpose of The House Corporation
Generally, the responsibilities of the house corporation include providing a safe residence for all its tenants and visitors, ensuring the property abides by all federal, state and local laws, and handling property-related issues as they arise. From these responsibilities, it’s evident why every chapter with a chapter house needs a house corporation. Not only does the house corporation act as an overseeing body for the house residents and collegiate members, but it also ensures the safety of the members and the legality of the residence and property. For these reasons, many house corporations look for alumni with related experience such as lawyers, building contractors, and mediators.
What The House Corporation Does
While every house corporation varies, most house corporations:
- Hold meetings, elect officers, prepare minutes, and act on motions
- Serve as the landlord for the chapter
- Monitor and maintain standards of cleanliness, safety, and protection of the property and building
- Equip the house with necessary items such as furniture, computer equipment, and safety equipment (fire alarms, extinguisher, etc.). Any house equipment bought with house corporation funds is usually the property of the house corporation and the chapter house.
- Manage the house budget and all finances related to the house and property
- Complete and file necessary paperwork such as insurance forms, tax forms, and corporate documents
- Facilitate interior (and exterior if possible) improvements and changes to the house with house corporation money
- Encourage high occupancy from the collegiate members and proper use of the property
Additionally, house corporations generally do not:
- Clean up after residents, collegiate members, or their guests
- Collect individual rent from residents (this varies depending on the housing situation)
- Get involved with chapter proceedings not involving the property, the chapter house, or the tenants (if unrelated to their residence in the house)
- Attend chapter meeting
How to Create a House Corporation
If you’re ready to create a house corporation for your chapter, we suggest the following article: How to Create A House Corporation.
