The issue is insurance. If you aren’t associated with PSU, then the National Chapter will drop you. If you’re not part of the National chapter, its next to impossible to get insurance. Insurance is about spreading risk...if you have 120+ chapters nationally, an underwriter can price that risk, and the economics are such that insurance isn’t crazy expensive for each individual chapter (like $200 per guy per semester as part of your house bill.). That number increases by a factor of 10 if you get a carrier to write insurance for one single house. Then truly only rich kids could live there. Then your occupancy declines and you become cash flow negative, with even the most established chapters only able to draw on their capital reserves for no more than 3 to 5 years to pay operating costs. Don’t know if there’s a way for all of the PSU chapters to ban together in order to make the insurance economics work...if you had 40 or 50 chapters ban together, it might work.
Once Greek life dies, and I think it’s only a matter of time, it would be cool if the houses became alumni clubs. Would likely take significant capital dollars to renovate them to the point that they are nice enough for alumni to spend $500/night to occupy a room. If accommodations were nice enough, I could see a BNB vibe being very popular. Could potentially work with houses like Beta, SAE, Sigma Chi, Sigma Pi, ATO, Chi Phi, etc. May have to figure out other ways to generate revenue (event space rental perhaps?). And if they are ultimately going to be developed for condos/apartments, keeping the front facade from those houses as part of the development would be cool, although likely too expensive versus raising and starting from scratch.