The following frequently asked questions were included in outreach to house corporations in summer 2020:
Are you aware of any financial support being provided to house corporations through the aid packages that were passed or are being considered by congress?Holmes Murphy has provided helpful guidance regarding force majeure clauses that the Fraternity recommends having in your lease agreements. This clause will excuse the house corporation from its performance obligation for an unforeseen event.
As we prepare our lease agreements for the future, should we make any alterations as a result of the pandemic?
From Arnold and Porter (Law Firm supporting Fraternity and Sorority Legislative Items): "The Small Business Administration (SBA) has created a page for COVID-19 small business loan guidance. On Tuesday, March 17, SBA revised the criteria for states seeking an economic injury declaration related to COVID-19 to make it easier to qualify. We strongly encourage house corporations to look at this program, which is likely to evolve significantly in the coming days as Congress passes modifications and injects hundreds of billions of dollars into the program. A group should apply for support as soon as possible if they are eligible because the new criteria to come may or may not be as favorable and demand for this program will soon far outstrip financial capacity. Again, fraternity and sorority house corporations may be eligible for up to a $2 million loan through the Economic Injury Disaster Loans. Here’s what the SBA says about them: 'These loans are for small businesses, agricultural cooperatives, aquaculture enterprises and nonprofits affected by disaster to help meet working capital needs or normal business operating expenses through the recovery period. Businesses are eligible for these loans regardless of whether or not they have suffered property damage.'" A helpful one-pager with information about the process can be found here.
Do we need to disinfect the entire building before students return this fall?
It depends on who has been in the building during the summer. If your building has been permanently closed during the summer and no one has had access, then there is probably not a need to disinfect the house. If tenants are in the house this summer, it may be necessary to have it professionally disinfected for the fall. For an in-depth understanding of disinfecting, please listen to this webinar by Holmes Murphy. If you would like to have your house professionally cleaned and disinfected, Service Master has a dedicated line for Holmes Murphy clients available at 888.927.4877.
Does our liability insurance cover the house corporation if a claim is brought against us due to COVID-19?
From Holmes Murphy: "Your General Liability policy provides coverage in situations in which an individual brings a claim or files a lawsuit alleging they sustained some sort of bodily injury, property damage or personal injury arising from the negligence of Beta Theta Pi. Bodily injury includes sickness or disease sustained by a person. Therefore, if a member brought a claim or filed a lawsuit alleging they contracted the Coronavirus arising from the negligence of the organization, your General Liability Insurance Carrier would likely respond. The GL carrier would be obligated to provide a defense and conduct a claim investigation up until the point where it determined whether or not the organization was indeed legally liable for contraction of the virus. If the organization was not legally liable, coverage would be disclaimed or denied to the person bringing the claim and the matter closed. If the GL carrier felt the organization was somehow negligent, a settlement would be negotiated. While you never say never, we find it highly unlikely that the Fraternity could ultimately be held legally liable for a member or another 3rd party contracting the virus. Please keep in mind that these are our general comments. Ultimately, coverage for any claim/lawsuit brought will depend on the specific allegations included within the claim or lawsuit."
How do I get personal protective equipment and cleaning supplies?
It’s important to begin procuring cleaning supplies and personal protective equipment now. Please check with local distributors or your host institution as they may be able to help provide access to difficult-to-find supplies. The Fraternity has leveraged its collective purchasing power and partnered with Corvexxe for a special package containing a number of these supplies.
How do we open the chapter house and move-in our members safely?
The move-in process will be a period of heavy traffic in your chapter home. Therefore, it is important to have a structured schedule so you can stagger move-in times while also providing additional cleaning. These steps will help ensure the home is safe prior to a new set of students entering. The Fraternity recommends requiring masks during the move-in process, having sanitizer available throughout the house and following this CDC guidance. Holmes Murphy has provided a helpful resource and checklist for opening your chapter home.
For house corporations that utilize Designated Educational Area (DEA) Grants through the Beta Foundation, sanitizing stations may be a qualifying purchase. Please contact Beta’s Cornerstone Housing Department for more information
How often should we be cleaning our home?
The CDC recommends cleaning and disinfecting high use spaces and surfaces such as kitchens, door handles, bathrooms and laundry areas at least once a day. The Fraternity recommends outlining expectations for the frequency of cleaning high touch surfaces with your residents and professional cleaning crew. Please review this list of EPA-approved disinfectants.
How might this impact meal plans for the fall?
Even with a return to campus in the fall, your house corporation operations may be different, specifically for meal service. Primarily, buffet serving styles may need to be adjusted to single-serve, individually wrapped meals. More information on meal plans is available in a housing webinar hosted by industry experts such as Woody Ratterman from CSL Management, Jack Dawson from College Fresh and Clay Wardlaw from Safety Plus.
If you are working with a food service provider, have a one-on-one meeting to talk about your needs and the unique situation your chapter has in its food distribution. Across the industry, there is a move toward single-serve meals, adding protective barriers and daily temperature checks for employees. For more guidance, review Campus Cooks’ guidebook for fall opening.
If we close the house for the semester, is it now considered to be vacant?
Holmes Murphy and our underwriters understand these are unprecedented times and will not be mandating vacancy adjustments for being under 50% occupancy, unless your property was already considered vacant under the policy. Please review this resource for more information.
Is there any insurance coverage if we end up closing the house and lose a portion of rent?
All occurrences trigging coverage of the business income policy is dependent upon the presence of direct physical damage resulting from a covered cause of loss. A virus or other communicable diseases generally do not constitute damage. However, if a disruption of operations occurs and there is a loss of rents, Holmes Murphy does recommend filing a claim which will require a response from the insurer. An additional resource is linked here.
Is there a way to reduce property insurance costs?
We strongly recommend that every house corporation review the property insurance discount flyer. Director of Cornerstone John Reineke and Associate Director of Cornerstone Colin Close can answer any questions you may have about qualifying for any discount.
Should bedrooms be arranged in a certain way?
CDC guidance does not specifically address how a bedroom should be arranged, but there should be six feet of space between individuals in a room. Some universities are additionally asking to have protective barriers installed in rooms occupied by more than one person. If you have a sleeping porch or high-density rooms, the Fraternity recommends making adjustments to those sleeping arrangements by either utilizing other available space in the chapter house, ensuring six feet of space between beds, or providing physical barriers between beds. For more information, review this resource endorsed by CSL Management on bed position protocol.
Should we allow guests over to the house?
CDC guidance says to limit the presence of non-essential visitors in shared areas when possible. The chapter house should be limited to essential personnel, such as residents and employees. The Fraternity also recommends creating guidelines for live-out members so they know when and for what purpose they can visit the chapter house.
What about excess liability coverage?
Currently, every house corporation is covered under Beta’s general liability coverage which provides $1,000,000 per occurrence with a $2,000,000 aggregate. The excess policy available through Holmes Murphy is an additional limit of $1,000,000 per occurrence and $1,000,000 aggregate. More information is available here. If you are interested in obtaining a quote, you can fill out the application and return it to Cynde Glantz at Holmes Murphy.
What do I do if someone living in the chapter house tests positive for COVID-19?
The first option would be to send that resident to quarantine alone, either at his parents’ house, university-provided housing or in a separate room of the chapter house with access to a private bathroom. Check with your local institution as some universities will provide space in a residence hall for quarantine. Additionally, we recommend a deep clean of the entire chapter house. For more information, please review this CDC guidance and this facility guidelines resource from CSL Management.
What if students don't return to campus in the fall?
North American Interfraternity Conference CEO Judson Horras and National Panhellenic Conference CEO Dani Weatherford address this question in a recent webinar. Word in the industry is that schools are planning for students to be on campuses in the fall, but house corporations should prepare for a scenario with an all-online fall term or a hybrid just in case. Regarding financial support for house corporations, if students don’t return to campus, the Fraternity and Sorority Political Action Committee is advocating for 501c7 organizations to be included in the next stimulus package, and the Small Business Administration (SBA) is hopeful for an additional appropriation of funds. House corporations are encouraged to monitor this resource for COVID-19 small business loan guidance.
What if we don't have all leases signed for next year?
Signing leases for the fall should be a high priority for every house corporation if it hasn’t already been completed. If campuses open in the fall as anticipated, having chapter houses filled for our men to call home will be essential. Now is the time to review your lease to ensure it has adequate provisions for these uncertain times. Please email Beta's Cornerstone Housing Department, if you would like to discuss your lease in more detail.
What should we be doing to prepare financially?
Each house corporation should prepare for a number of scenarios this fall, including what to do if students don’t return to campus. The Fraternity recommends reviewing your budget to understand what expenses can be stopped or reduced. It's also a good idea to start conversations with a lender to open a line of credit if it becomes necessary this fall. Beta’s Cornerstone Housing staff is happy to help review budgets and/or connect you with a mortgage broker if desired.
What upgrades are needed to our technology infrastructure to make sure our students can continue to learn in an increasingly online environment?
Students will likely have more of their classes and meetings online and your internet bandwidth and speed will need to keep up with the increase in demand. The Fraternity recommends you contact your local service provider and inquire about upgrading your internet if needed. Also, consider adding additional study areas as more students will likely stay at the chapter house instead of going to the library or other areas on campus.
What will recruitment look like this fall and what support is being provided by the Fraternity?
On June 10, the Fraternity hosted its first-ever virtual leadership meeting to unveil a wide-ranging plan to help chapters recruit and retain members during this fall’s unusual circumstances. Recruitment will look different for every university since each campus is deciding how best to keep students safe. This could vary from an all-online recruitment process to business as usual. Part of the announcement on June 10 was that the Fraternity is providing custom recruitment support to chapters that will address the changes in recruitment this semester. If you have questions about the recruitment support you are receiving, please reach out to Director of Expansion Zach Lepperd.
