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The first thing that needs to happen is that the local needs to become a member of the panhellenic. The will be requirements the group will have to fullfill before being allowed to join, but this will give the group a step in the right direction. The local group is going to have to meet these guidelines (and probably more) if they every affiliate with a national group.
Once the local is on the panhellenic and is working with them thins may change. It is possible that the greek system is not strong enough at this time to be able to hld another group. This amy be why the local was turned down in the first place. One way or the other, by joining the council the local will be benefited.
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