Yes, University of MD-my alma mater-uses this procedure. I was
a rho chi my junior year and the was it worked is this: we had
a maximum of 3 pref parties, but some girls wouldn't have all
3, they would have only 1 or 2, but as long as you ranked every
house that you went to, you were guaranteed a bid to one of them. This did not mean, though, that you got your first choice.
I had 3 girls of 7 that got their 2nd choice. Obviously this is great for the PNM, but it also lead to a lot of houses being able to take
quota plus while allowing other chapters to make less than quota,
so I think it's both good and bad