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As a recent alumna from Valpo, I hope this will clarify a few things.
1. The decision to suspend the chapter was made by Phi Delta Theta's international officers, not the University.
2. Fraternity houses are recognized student housing as long as the chapter retains operational status. If the fraternity does not exists, the house is not recognized. Valpo's policy is that all student must live on-campus or in a recognized student residence (ie fraternity house) through their junior year. There are a few exceptions, like if you are married, above a certain age, military veteran, or living with parents at home.
3. Phi Delta Theta and the University definitely has a reason to be concerned about the property. The empty lot across the street where the Pike house stood is an example. After that house was closed, it was trashed to the point it had to be torn down (early 90s.) The former Delta Sigma Phi house (later 90s) was protected after the chapter was closed, and it is in use today as a special interest residence hall.
4. What happened this week is not just about two incidents in the past four months. I am sure that a number of incidents from the past few years also played a part in the decision. I believe that a quote from a Phi Delt spokesperson alludes to that.
The Valpo Greek commmunity is about education. If a mistake is made, and a chapter is willing to face the situation and improve, you will be given a chance. I am not surprised that is a touchy issue on campus because the Greek community is truly a community. What affects one chapter, affects everyone, especially as many students work very hard to keep Greek life strong.
ValpoKD
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