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It's not just to bother fraternities. Most fraternity zoning codes are extensions of codes for apartment buildings, anti-slum laws. When you build a single family home, only your family really has to be concerned about the conditions- and if you're content to live in a gasoline-soaked grass hut, the authorities will let you. But it's different when you build a house and people other than yourself are going to live there- you don't have to care as much. Most places have two different sets of codes, one for owner-occupied buildings and one for everything else. It's the same with banks- interest rates are lower and terms are longer if the facility is owner occupied, because the bank assumes it will be better cared for.
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