I doubt the alums will be very happy to hear about this since they just spent a ton of money to completely remodel the house.
Delta Tau Delta was actually off campus for a year while I was there (the dark ages) but they still had recognition from thier national office, so they still functioned as usual, just without participating in greek week or homecoming. And then when they did recieve official recognition from the university, they had this amazingly huge pledge class (all the guys they rushed underground) that was initiated right away.