University of Virginia Library

FRATERNITY AND SORORITY INVESTMENT PROGRAM

WHEREAS, the Board of Visitors acknowledges the important role that fraternities and sororities have played, and continue to play, in the lives of students at the University, and the contributions that such student organizations have made, and will continue to make, to the University community; and

WHEREAS, while the fraternities and sororities are independent and private associations, the Board is committed to supporting appropriately their efforts to provide safe and appropriate physical accommodations for their members and students of this University; and

WHEREAS, evidencing its commitment, the Board wishes to authorize a new pilot program providing limited financial assistance in the way of loans and other financial commitments to such student organizations' House Corporations needing funds to renovate existing housing facilities, who responsibly seek the assistance of the University for such purpose or to provide on-Grounds fraternity and sorority housing; and

WHEREAS any program involving fraternities and sororities should be designed to include appropriate participation and firm commitments by the house membership, alumni and the University; and

WHEREAS the Board expects all organizations associated with the University to comply with all local, state and federal laws as well as applicable University rules and regulations.

RESOLVED that the Board of Visitors authorizes the Executive Vice President and Chief Operating Officer in consultation with the Vice President for Student Affairs and the General Counsel and subject to all applicable state, University and Board policies and approvals, to establish and administer a program authorizing loan funds and other financial commitments for improvements to off-Grounds fraternity and sorority houses or to provide on-Grounds fraternity and sorority housing; and

RESOLVED FURTHER that funds for this purpose are allocated from other than general appropriations to the University, provided, any such loan and other financial commitments must be approved by the Executive Vice President and Chief Operating Officer, or his designee, following due diligence review with respect to repayment of any indebtedness and justification for any financial commitments, and who shall be authorized on behalf of the University to execute any and all papers associated with such programs; and

RESOLVED FURTHER that (a) loan(s) — meaning unpaid principal and other financial commitments — to all fraternities or sororities requesting such assistance and selected for participation in the program shall not exceed in the aggregate the sum of $3 million without the further approval of the Board, (b) loans shall be adequately secured or collateralized as approved by the Executive Vice President and Chief Operating Officer, or his designee, (c) interest shall be charged on loans at market rates, and (d) fraternities or sororities participating in this program shall commit affirmatively to rehabilitate their physical quarters in accordance with plans or designs approved by the University as well as to monitor and oversee their social activities in strict compliance with applicable laws, University policies, rules of any national or local governing association or of the Inter-Fraternity Council; and

RESOLVED FURTHER that such financial commitments will be made only in those cases where the University's assets and investments can be appropriately protected; and

RESOLVED FURTHER that, as a condition of participation in such programs, fraternities and sororities shall be required to achieve a standard of performance relative to the management of social activities, compliance with University policies, oversight of business operations and care of houses and furnishings that are acceptable to the University on an ongoing basis; and

RESOLVED FURTHER that the Executive Vice President and Chief Operating Officer shall report to the Board on a regular basis on all actions taken under this authority.