Will the respective Province Archons for each F&H-assisted chapter be consulted on the running, upkeep and discipline of these houses and members?

For all F&H chapters, Province Archons will be as involved as they would at any other campus. While alumni involvement is always welcome, these properties do not need special treatment. F&H is primarily concerned with the physical structure of the house, as well as with revenue generated. The Fraternity is responsible for general operations, including discipline. As section 43(A)6 of The Fraternity Laws states, a Province Archon shall “advise and assist the Chapters Collegiate within the Province in all matters pertaining to housing. He shall communicate with each house corporation within the Province at least once a year for purposes of inspection.”

Do Province Archons have the ability to choose chapter advisers for these properties?

The selection of the chapter adviser is the responsibility of the chapter, alumni, Province and Fraternity Service Center. F&H has no involvement in choosing chapter advisers or other alumni advisers. Section 43(A)7 of The Fraternity Laws states that a Province Archon should “ensure that each Chapter in the Province has at least one effective Chapter Adviser. In the case where the adviser is either effective or does not exist, the Province Archon shall assist the chapter in the identification of a new and capable adviser. The house director, however, is hired by Greek Management Housing, LLC, a subsidiary of F&H. The chapter will participate in the selection of a house director.

How are the house corporations for these properties selected?

A house corporation for each chapter is a distinct entity that is created by alumni. F&H has nothing to do with individual house corporations at each location. However, upon donation of a property to F&H from a house corporation, the house corporation is encouraged to transform itself into an active alumni association, along with an alumni advisory board.

What requirements must Regional Directors and extension personnel fulfill with these F&H-assisted chapters?

Any representative of the Fraternity Service Center is required to treat a visit to an F&H-assisted chapter like any other visit. No special treatment need exist, as all Regional Directors work directly for the Fraternity Service Center, not for F&H. Since the F&H Corporation exists to purchase and rehabilitate houses that will be used for active chapters, however, it would make sense to target those F&H chapters for extension efforts. While such an effort would help Sigma Alpha Epsilon in general, the Fraternity maintains full control of the Regional Directors and the extension team.

Are Regional Directors responsible to visit F&H-assisted chapters a certain number of times?

Regional Directors must visit chapters, regardless of status with F&H, according to The Fraternity Laws. Again, it makes sense to target these F&H chapters in order to more fully support the mission of Sigma Alpha Epsilon, but the Fraternity maintains full control of the Regional Directors and the extension team.

How are travel, lodging, food and other expenses for these visits broken down?

These expenses are the responsibility of the Fraternity Service Center. F&H has no control on this issue. The Regional Director program, managed by the Fraternity, has been supported by dues increases at previous conventions.

Do these F&H-assisted properties constitute a partnership with the Fraternity Service Center?

The only partnership that exists between the two entities was spelled out in a blueprint agreement that was signed between the Fraternity and F&H in July 2007.

F&H, as part of the overall Sigma Alpha Epsilon structure, exists to help finance Fraternity operations by continuing to build the financial corpus of the Fraternity Endowment Fund and by improving housing throughout the Realm. Although each is a separate corporation, F&H exists to support the greater cause of Sigma Alpha Epsilon. Each has its own voting board of directors — the Eminent Supreme Herald and the Eminent Supreme Recorder are members of the F&H board — and, by dividing responsibilities, assets can be best protected from liability.

If a property is owned by F&H, what is the potential liability for the Fraternity?

F&H is a separate legal entity from the Sigma Alpha Epsilon Fraternity, and each housing corporation owns its property’s title. Only minimal liability exists due to the separation of board control. The LLC structure was specifically developed on the advice of several attorneys to isolate any liability at the chapter or property levels. Additionally, F&H’s leases with tenant chapters further isolate responsibility for chapter conduct. The risk level and risk exposure are no different that currently exists with all house corporations around the Realm. The Fraternity’s insurance policies cover chapters for potential claims.

In reality, were a problem to occur, house corporations, alumni associations and chapter advisers are typically removed from a suit through summary judgment. In most cases, the national Fraternity is also removed on that summary judgment. The only plaintiffs who remain are the chapters and the individuals being held responsible. Our insurance coverage provides a defense to the chapter and/or individuals as long as Sigma Alpha Epsilon’s risk-management policies were not violated. However, if those policies are found to have been violated, the offending parties are excluded from insurance coverage. In instances where risk-management was not an issue, our insurance carrier provides defense in those cases to all officially recognized Sigma Alpha Epsilon organizations, including F&H, the Fraternity, the Sigma Alpha Epsilon Foundation, house corporations, alumni associations and chapter advisers.

For more information about F&H, contact Associate Executive Director Gregory Somers at gsomers@sae.net.

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