Legal Issues

Getting Legal

Like “Jello” and “Kleenex”, the term “house corporation” has a generic meaning for some alumni groups that are operating chapter houses. The typical scenario is that a couple of well meaning brothers decide to take charge of chapter housing to raise money, sign a lease or buy a property. Voilá! A house corporation is born. That’s all it takes, right? Hardly.
 

Collegiate Housing & Infrastructure Bill

Chapter houses seem to have an insatiable need for renovation. As the houses age and are subjected to “accelerated depreciation” by the residents, house corporations are challenged to keep the housing safe and competitive with other forms of university housing. Universities have long had the advantage of being able to use tax deductible contributions to maintain their property.
 

Bylaws By Law

House corporations, like any corporation, need a legal basis and framework to work properly. The legal basis is established by filing Articles of Incorporation with your appropriate state agency, often the Secretary of State. This is usually a relatively simple and inexpensive procedure.