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If the alumni own the chapter house they have a lot of control. They also have a lot of liability that can roll up to them. My strong assumption is that the alumni knew what was really happening behind closed doors in the house they own and manage. They made the decision to reduce their risk and start over with a fresh group of men who are more likely to be a fraternity and not a "frat".
We did the same thing at our chapter and it was a great decision. Our national fraternity and the University were scratching their heads wondering why Sigma Nu was on campus at the end of spring 1997 and did not return in the fall 1997.
We alumni (who were paying the bills, signed the lease with the landlord etc.) knew things were going to hell. Quality members were leaving - knuckleheads were staying. You can't recruit quality when you don't have quality. It would have been nearly impossible to turn the culture of that organization. We started fresh several years later and now have a quality organization.
Good luck to Psi U in restoring their organization to their core values.
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