Housing FAQs

History

What is the Alpha Chi Omega National Housing Corporation?
It is an Indiana corporation and is in essence a real estate holding/management company. A five-member board governs the NHC with board appointments made by the National Council on either a one or two-year term basis.

Who established the NHC and when was it established?
The NHC was founded in September of 1996 as directed by the National Council of Alpha Chi Omega Fraternity, Inc.

Why did the National Council establish the NHC?
It was established to oversee and administer all housing related issues of the Fraternity. Housing is an integral part of the Alpha Chi Omega collegiate experience on many college/university campuses and as such requires a dedicated board, staff and local volunteers to ensure the success of housing for all collegians.

Current Ownership and Management of Properties

How many facilities does the National Housing Corporation currently own?
As of August 1, 2005 , the National Housing Corporation will own nineteen (19) facilities. (* transition of ownership pending)

Albion College - Beta chapter lodge
Simpson University - Mu chapter house*
Washington State University - Omega chapter house and additional rental property
University of New Mexico - Alpha Gamma chapter house
University of North Dakota - Alpha Pi chapter house
University of New Hampshire - Alpha Tau chapter house
Florida State University - Beta Eta chapter house
University of Massachusetts-Delta Mu chapter house
Central Michigan University - Delta Zeta chapter house
Stephan F. Austin - Epsilon Eta chapter house
Georgia Institute of Technology - Epsilon Phi chapter house
University of North Carolina - Chapel Hill - Epsilon Chi chapter house and additional rental property
Bradley University - Zeta Eta chapter house
University of Virginia - Zeta Lambda chapter house
Texas A & M - Zeta Nu chapter house
University of South Carolina - Theta Upsilon chapter house
University of California - Davis - Theta Pi chapter house
Southern Methodist University - Iota Sigma chapter house

How many facilities does the National Housing Corporation manage?
As of April 2004, the National Housing Corporation leases and manages nine (9) facilities.

Leases from a landlord and handles financial and facility management:
University of Pennsylvania - Alpha Epsilon chapter house
Miami University of Ohio-Beta Tau chapter room
Williamette University - Beta Chi chapter house
University of Maryland - Gamma Theta chapter house
Marshall University - Gamma Omicron chapter facility
California Polytechnic State University-San Luis Obispo
Case Western Reserve University-Zeta Upsilon chapter house
Cornell University - Zeta Phi chapter house
Baylor University - Theta Iota Panhellenic building suite

Financial and Facility Management without a lease :
Virginia Polytechnical University - Epsilon Tau special purpose house
Case Western Reserve University - Zeta Upsilon chapter house

For how many chapters does the NHC serve as property manager on behalf of the chapter?
As of April, 2004, The NHC acts as property manager for 25 chapters of Alpha Chi Omega.

Allegheny University - Delta chapter
Bucknell University - Eta chapter
Brenau University - Tau chapter
College of William and Mary - Beta Delta chapter
Pennsylvania State University - Beta Mu chapter
Florida Southern University - Beta Omicron chapter
Washington College - Beta Pi chapter
American University - Beta Rho chapter
Stetson University - Gamma Chi chapter
South Eastern Missouri University - Delta Epsilon chapter
Sam Houston State University - Delta Kappa chapter
Ripon College - Delta Lambda chapter
Indiana State University - Epsilon Omicron chapter
Brown University - Zeta Theta chapter
University of North Carolina-Greensboro - Zeta Xi chapter
Mulhenburg College - Zeta Chi chapter
Western Carolina University - Zeta Omega chapter
Clemson University - Theta Lambda chapter
University of North Florida - Theta Sigma chapter
Columbia University - Theta Psi chapter
Marquette University - Theta Omega chapter
University of Richmond - Iota Mu chapter
Lynchburg College - Iota Omicron chapter
Middle Tennessee State University - Iota Chi chapter
Elon University - Iota Psi chapter

Financial Reporting

Does the NHC have an accounting firm?
Yes. Blue & Company in Indianapolis , Indiana audits the NHC's financial statements and thus far has rendered unqualified opinions for each year of operation.

Does the NHC have a Business Plan?
The NHC Board of Directors approved the Business Plan in February, 2002.

Business Philosophy of the National Housing Corporation

Does the NHC want to own and manage chapter facilities of Alpha Chi Omega?
Yes. But, only when the local house corporation desires and votes to transfer ownership of the facility to the NHC. The NHC's primary purpose is to offer support and assistance in the areas of budgeting and facility management to help ensure the financial health of the local housing corporation as an independent entity.

Does the NHC require housing corporations to give up ownership of facilities?
The NHC cannot force a housing corporation to give up ownership of its facility. A HC is a legal entity that owns the facility. Only a vote by the housing corporation Board can cause a transfer of ownership. Furthermore, the NHC wants the decision to be mutual as we want a continued relationship with the housing corporation as property manager and would hope that the housing corporation would see long-term benefits from allowing the NHC to own the asset.

Does the NHC take ownership/management of all facilities offered to it?
No. The NHC uses a decision-making model that has specific financial criteria to determine whether a facility should be acquired. Facilities that have insufficient revenue or value net of debt, which cannot be improved within established timelines, will not be acquired.

If the NHC acquires ownership / management of a facility, what, if any, role does the local housing corporation play?
A very important one. Being that the NHC will be a long-distance, out-of-market owner, we need a team of people locally to manage the facility on our behalf. We have varying levels of involvement and will cater the local role to meet the needs of those interested in serving in the role of property manager for the NHC.

Why doesn't the Fraternity or the NHC loan money to housing corporations instead of taking ownership of facilities? Why doesn't the Fraternity or the NHC guarantee debt of housing corporations instead of taking ownership of the facilities?
The Fraternity and the NHC are business corporations and as such have a duty to maintain the financial strength of the corporations. Loaning monies without a corresponding asset to support the loan as collateral weakens the financial condition of the corporation. In essence, these loans are unsecured.

Furthermore, at the advice of Alpha Chi Omega's auditors the Fraternity and the NHC do not guarantee loans for the reasons listed above. Guarantees are direct liabilities of the corporation but have no corresponding asset value to the corporation. Again, guarantees or contingent liabilities weaken the financial strength of the corporation.

If a facility has been transferred to the NHC, can ownership of the facility revert back to the local HC in the future?
Prior to the transfer of the facility, all efforts will be made to keep local ownership of the facility. The NHC will work with the local housing corporation and chapter to establish a healthy rent payment that includes adequate reserves for the future. The NHC will assist a local HC in obtaining financing without a Fraternity guarantee. If after all efforts have been made, financial assistance from the NHC is needed, and the NHC votes to acquire the facility, the NHC will acquire ownership of the facility. After this time, the NHC will own the facility, and ownership would not revert back locally in the future.

It should be noted though that the NHC very much wants the local housing corporation to serve as property manager for the facility. Other than budgeting and collection of rent payments from the chapter, the duties of the housing corporation would remain mostly unchanged in its role as property manager.

Are the reserve fees collected set aside for use "only" by that chapter facility?
It is the practice of the NHC to utilize a facility's reserves for that facility. The banks, as well as the NHC, want each property to stand-alone and be independent. In addition, from an accounting perspective, each facility is accounted for separately. The NHC Board of Directors, in its fiduciary capacity, however, can vote to change this practice if deemed necessary.

How are Franchise Fee proceeds used?
The primary purpose of the franchise fee proceeds is to fund the equity requirement for facilities that are the result of extension. In other words, Alpha Chi Omega is invited to colonize on a campus where housing either already exists for the other groups or is a condition of coming to campus. The second purpose is to fund the equity requirement for facilities on campuses where Alpha Chi Omega has an established chapter, and housing is being introduced on the campus. The third purpose is to fund "necessary" renovation/ repair for chapter facilities at risk where there is an identified plan of improvement.

The NHC would own the facilities that are the result of extension or new housing initiatives. Funds allocated for facilities at risk will be evaluated as to whether monies would be gifted or loaned and whether ownership of the asset by the NHC is a condition of receipt of the funds.

Are donations to the NHC tax deductible?
No. Just as donations are not tax deductible for local house corporations, a donation to the NHC is not tax deductible.