A Chapter House
Taken from the Tau Kappa Epsilon thread with hoosiers permission.
A Must read.
Were you in that boat?
quote:
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ZZ-kai- wrote on 06-04-2004 09:47 PM:
I notice one of your postings in the TKE forums, stating that your chapter folded after getting a big house (UGA???). I serve as a House Corp. Board Member for my chapter and I am hesitant to put any vote towards a new house, for that same reason - if they close, I may have to pay. I mean, I have a wife, a house, and a great job - I'd hate for a few dumbass undergrads to fuck it up for me. Were you in that boat?
Later,
ZZ-kai
Beta Theta Pi - the only
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To get a loan from the TKE House Fund, they require 30 alumni/friends to each personally guarantee $1000.00 of the loan.
The UGa Tekes had a wonderful large chapter, only 5 - 6 years old, thriving in a small house on a prominent corner. This was a chapter which won the Top Teke Chapter Award 10 times in their first 11 years of existence.
They wanted a big house with columns on GLO row, and found a perfect old mansion housing a real estate firm, and the realtor would take a first mortgage. The most prominent young alumnus, ironically a banker, got an appraisal from one of the undergrad's mother, prepared a budget easily described as voodoo economics, got 29 alumni and me (the Dist. Gov.) to sign-up.
Almost from the day they moved in, the chapter adopted an attiude of "we've got it made now" with fewer good pledges, empty rooms, almost no summer income, and better parties. The 29 alumni - even though they were on the line for $1000 - did almost nothing, as the chapter suffered.
After they moved into the mansion on GLO row, they never won another Top Chapter Award.
Like most chapters at GA at that time, their active alumni and chapter advisor were in Atlanta, about 60-90 min. away. As alumni get better jobs, and get married, and get kids, there are few chances to take off for the campus evenings or weekends.
At one point, several undergrad officers contacted several very recent alumni, and complained that the few chapter supervisors remaining were "too mean", so several good guys stepped aside - hoping that new alumni supervisors could get the job done.
The large house became a rock tied around the chapter's neck, with empty rooms and large costs.
The National made several addl. emergency loans to keep the chapter alive, and did a "shock rush" bringing in the famous Buckwheat, and put a picture of the 60-70 new members on the magazine cover. These guys apparently never pledged another person, and the chapter closed about three years later.
The good news, though, is that the mansion had rapidly climbed in value during the 12-13 years of TKE ownership, and there was enough equity to pay off all the loans - so no one had to pay on their $1000 guarantees.
I was happy to be a $1000 guarantor at the time, and we easily got the 29 alumni to sign.
Looking back, at the house purchase, the proposed budget was a joke, planning for a 45-man full house fall and spring, and about 75% full summer quarter. The undergrads wanted the house, but they didn't want to live in it - especially with the necessary four and five men per room. Their "full house" was about 35, but they wanted to have the rent based on 45 occupants, and the social budget based on a non-existent 75 members.
I'm not current with TKE House Fund policies now, but I know that years ago the Univ. of Toledo got a TKE loan, with alumni guarantors. The house they purchased could not be zoned, and was sold for a loss. TKE vigorously collected from the alumni guarantors.
Every situation is different. If a similar situation came up now, I would study the budget carefully. I would be sure the undergrads carefully looked at the house, and how many people would be crammed in, and how much the dues/housing would be. I would be sure the chapter advisor(s) were strong and committed (and guarantors). I would look at the building/location - if disaster happens, can the house be resold, and is it damage-resistant?
Getting a house is very important for a chapter. It's hard to finance a house. Often alumni guarantors make it easier (and it's a TKE requirement).
Having a mansion on Milledge St. at UGa was very important, and we took a gamble. Although the chapter died, the building was a financial success.
I would encourage you to look hard, look twice, and put your own money on the line reluctantly.
(This long essay has taken so much time, I think I'll add it to the TKE site for others to read.)
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