One of the primary charges of the Grand Trustees is to improve chapter house conditions for livability and to address life/safety improvements like fire sprinkler systems. Sigma Chi has an outstanding money source available known as Constantine Capital, Inc.(CCI) that can help make those goals a reality.
What follows is a Q&A featuring information from the CCI web page together with comments from CCI’s Board President Jimmy Walker to help understand what CCI might do for your house corporation:
Q How much money can CCI lend?
A Up to $250,000.
Q What kind of house corporation participation money is needed?
A [Walker] It’s good to shoot for at least 20%. That amount could be raised through the Sigma Chi Foundation on a tax deductible basis for educational components of the House.
Q What if the university owns the House?
A [Walker] Often we see the university owning the land and granting a long term lease (like 40-80 years) to the house corporation, which then constructs the improvements. We can make a loan if the house corporation has a leasehold interest. CCI is looking for “tangible” collateral. If the university owns the
House, and we are unable to take a collateral interest in the real estate or leasehold estate, then perhaps we could provide financing for furniture, fixtures and equipment.
Q What are current interest rates?
A CCI’s loan rates are competitive with the commercial mortgage market and the loan process is less complicated.
Q What is the term of the loan?
A CCI loans can have up to a 30 year pay back plan but the remaining balance comes due in 5 years. If payments have been made as agreed and the house corporation is in good standing, CCI can consider renewing the note for another 5 years.
Q What collateral does CCI require?
A [Walker] CCI needs a 1st or 2nd mortgage and normally requires local alumni or house corporation officers to personally guarantee an aggregate amount up to 20% of the loan, with no one alumnus representing a disproportionate amount of the guarantee.
Q So what’s the first step in applying for a CCI loan?
A Contact the Sigma Chi Director of Housing at Sigma Chi Headquarters who can help put together a loan application.
The Grand Trustees encourage house corporations in need of funding to take advantage of this “in-house” option. For more information, go to www.sigmachi.org>Members>Housing >Constantine Capital, Inc.