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As far as I know this is not completely uncommon, I know I met a random who was living in the Pi Kappa Phi House at Berkely and I know a few other houses at Berkely lend out housing to non-greeks for $ and because especially here at urban California campuses, housing (let alone cheap housing) is VERY hard to come by.
It does kinda seem weird that the parents will let them live in the house but not join the fraternity...
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