A house corporation is the alumni-run nonprofit that owns or leases the chapter house and handles its long-term finances. The BOG Chairman must maintain an active, regular line of communication with the house corporation about facility conditions, financial obligations, and anything that affects member safety. That relationship should never go dormant.
For: Board of Governors (BOG) Chairman (@chapters with a chapter house)
When: Every semester, and any time a housing issue affects safety or finances
What a house corporation is
A house corporation (sometimes called a housing corporation) is a separate nonprofit corporation, usually led by chapter alumni, that oversees the financial, physical, and safety aspects of the chapter house. It is affiliated with the chapter but has its own officers, bylaws, bank accounts, and legal obligations.
Most house corporations have a President, Vice President, Secretary, and Treasurer. The house corporation President is the official liaison to the chapter, the BOG, and the Executive Offices, so he is usually the primary contact for the BOG Chairman.
đ Policy â Under the National Constitution and Statutes, a chapter or house corporation must get National Fraternity approval before it leases, builds, buys, or sells a chapter house, and before committing to repairs or improvements over a certain dollar amount (e.g. Phi Kappa Tau policy has identified $5,000 as a threshold requiring approval in the past, so the BOG Chairman should check with the Executive Office before making substantial repairs and to confirm if this threshold has changed or is still current). House corporations also file an annual financial statement with the Executive Offices.
Who is usually responsible for what
Responsibilities should be spelled out in a written lease and operating agreement between the chapter and the house corporation. Where that's missing, this is the typical split:
House corporation | Chapter (Resident Council) |
Loan and mortgage payments | Collecting rent and paying the house corporation |
Property insurance and property taxes | Utilities |
Roof, mechanical, and structural repairs | Cleaning, routine repairs, and building maintenance |
Reserves for future needs | Yard maintenance |
Long-term competitive housing for the chapter | Leasing rooms to members |
Your role as BOG Chairman
The BOG Chairman meets with the house corporation President each semester and reports the results to the full BOG. He also makes sure the chapter's House Manager is reporting issues to the house corporation between those meetings.
Use each semester meeting to cover three areas:
(1) Facility Conditions
What did the House Manager's latest walk-through find?
Are fire safety systems, smoke detectors, and exits in working order?
What major repairs are coming, and who is paying for them?
(2) Financial Obligations
Is the chapter current on rent? If not, what is the plan?
Is the house corporation current on its loan, insurance, and taxes?
Is it building reserves, and will it share its financial statements with the chapter?
(3) Member Safety
Are there any conditions in the house that put members at risk?
Is the house being used in line with the Phi Kappa Tau Risk Management Policy?
Who needs to act, and by when?
â ď¸ Watch out â Don't wait for the semester meeting if something affects member safety. Contact the house corporation President right away and loop in your Chapter Services Consultant.
How to keep the relationship active
Schedule a semester meeting with the house corporation at the start of each term
Introduce new chapter officers to the house corporation soon after elections
Confirm there is a current, signed lease that says who handles which repairs
Invite a house corporation officer to at least one chapter meeting per term
Ask the house corporation to present to the Associate Member class about living in the house
Encourage the house corporation to give the House Manager a seat on its board
Report each semester meeting's results to the BOG
â Best practice â Encourage "open books." When the house corporation shares and explains its financial statements, members understand why rent must cover reserves, and trust grows on both sides.
Red Flags to look out for
Silence. No meeting in a semester, or no one knows who the house corporation President is.
No written lease. Responsibilities are unclear, so repairs fall through the cracks.
Late rent or missed payments on either side.
Deferred repairs, especially roof, heating, electrical, or fire safety.
Closed books. The house corporation won't share financial information.
Unapproved commitments. Major renovations or property deals made without National Fraternity approval.
đĄ Tip â Chapter Educational Grant (CEG) funds, managed by the BOG, can pay for educational improvements to housing, SUCH AS STUDY SPACE. Submit requests at least 30 days before funds are needed.
FAQ
How often should the BOG Chairman meet with the house corporation?
The BOG Chairman should meet with the house corporation president at least once each semester and report the results to the BOG. Contact sooner whenever a safety or financial issue comes up.
What if the chapter doesn't know who runs the house corporation?
If you can't identify your house corporation's officers, contact your Chapter Services Consultant. The Executive Offices keeps house corporation contact records.
Who pays for a broken furnace or a roof leak?
Major mechanical and structural repairs like a furnace or roof are usually the house corporation's responsibility, while routine maintenance usually falls to the chapter. The written lease should settle it.
Does the house corporation need national approval for a renovation?
Yes, if the repair or improvement may cost more than a certain dollar amount (e.g. historically =/>$5,000, but it should be confirmed before any major repair or investment). Yes also if the house corporation plans to lease, build, buy, or sell the house, in which case it must get National Fraternity approval before making any commitment.
Questions? Contact your Chapter Services Consultant
Last reviewed: September 2026