With the convention this summer in New Orleans, there have been quite a few questions about the SAE Financial & Housing Corporation. F&H serves as an entity under the Sigma Alpha Epsilon umbrella — just like the Fraternity or the Sigma Alpha Epsilon Foundation — that generally provides support and assistance with chapter housing. Read on for more frequently-asked questions about the F&H Corporation.

Where can I get a copy of the F&H financial report?

The current financial report for the SAE Financial & Housing Corporation can be obtained by requesting them from Gregory Somers, the Associate Executive Director for F&H, at gsomers@sae.net.

Who visits to the properties to make the houses are properly supervised? How are those visits funded?

Each property has a house director — in many cases, a house mother — who watches the individual property. In addition, Gregory Somers, the Associate Executive Director for F&H, visits each property on an as-needed basis. Somers’ expenses are paid through each chapter’s housing corporation. Expenses for house directors are paid through an entity called Greek Housing Management, LLC, which is funded through a management agreement between each housing corporation and each chapter, which functions as a tenant.

What properties does F&H own?

There are currently five housing corporations owned by F&H. Each corporation is set up as a limited-liability corporation, or LLC, which protects F&H from liability and helps with IRS and tax concerns.

• MIGA Housing, LLC, owns the title to 342 North Harrison, East Lansing, Michigan, for the house at Michigan Gamma at Michigan State.
• NHBE Housing, LLC, owns the title to 28 Madbury Road, Durham, New Hampshire, for the house at New Hampshire Beta at New Hampshire.
• WABE Housing, LLC, owns the title to 865 NE B Street, Pullman, Washington, for the house at Washington Beta at Washington State.
• OHGA Housing, LLC, owns the title to 57 East State Street, Athens, Ohio, for the house at Ohio Gamma at Ohio.
• ILBE Housing, LLC, owns the title to 211 East Daniel, Champaign, Illinois, for the house at Illinois Beta at Illinois.
• MIDE Housing, LLC, owns the title to 3315 West Michigan Ave., Kalamazoo, Michigan, for the house at Michigan Delta at Western Michigan.

The Financial & Housing Corporation is the parent organization of all LLCs listed above.

How much was paid for each property?

F&H does not purchase any properties. All are donated outright or donated in lieu of foreclosure. F&H then pays any remaining third-party mortgage or existing debts.

Michigan Gamma was gifted to F&H, subject to the existing mortgage on the property. The appraised value of the house is currently $1.05 million. F&H paid an estimated $180,000.

Washington Beta was closed, leaving F&H with a first-mortgage position. With no income, the house corporation was unable to make payments and, rather than foreclosing on the property, the house corporation gifted it to F&H. Appraised value, prior to planned improvements, is $1.1 million. F&H paid an estimated $325,000.

Illinois Beta was closed with a first mortgage in default, leaving F&H with a second mortgage on the property. Rather than losing its equity, the house corporation gifted the property to F&H, which paid the first mortgage. In 2005, appraised value was $1 million. F&H paid an estimated $800,000.

Ohio Gamma was closed and the first mortgage was in default with foreclosure sale pending. Alumni approached F&H about a gifting the house to the entity. F&H paid the $325,000 mortgage along with some past-due utilities and tax payments. While there is no current appraisal, F&H has a valid offer to purchase the house for $900,000.

New Hampshire Beta had been closed, and the house condemned by the town of Durham, with a first mortgage in default and a foreclosure sale scheduled. To save the house, the house corporation gifted the property to F&H. The appraised value is $1.25 million. F&H paid an estimated $425,000.

Michigan Delta gifted its existing property, located at 919 Short Road with a taxable value of more than $300,000, to MIDE Housing, LLC. MIDE Housing, LLC, then purchased the old Delta Gamma Fraternity house at 3315 West Michigan Avenue for $290,000. MIDE Housing, LLC, will sell the Short Road property to help pay the acquisition cost for the other house.

How does F&H ensure it gets its money back?

The board of directors built an ownership program that included model leases, house directors, an online billing system, financial oversight and a house-manager training system. With such measures in place, F&H can ensure that each house is filled to capacity and that each house corporation remains solvent. Additionally, F&H has consulted with other Greek organizations on how they have successfully and profitably operated large housing portfolios.

What is the capacity of each house?

Michigan Gamma holds 32 members. Washington Beta, 52. Illinois Beta, 50. Ohio Gamma, 45. And New Hampshire Beta, 32. These capacity numbers are for full occupancy and include a house director.

Are the houses at capacity?

For the 2009-2010 school year, Michigan Gamma, Washington Beta and New Hampshire Beta expect to have full occupancy. Illinois Beta is currently rented to the Acacia Fraternity, as the colony at Illinois is not large enough to fill the house. Ohio Gamma is currently being renovated and will be ready for new tenants after improvements are completed. A Fraternity colony is planned for the campus that will eventually move into the house.

What properties is F&H leasing?

As mentioned above, Illinois Beta and Ohio Gamma are rented to third parties, but all others are used by Sigma Alpha Epsilon chapters.

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