Delta Upsilon fraternity has been granted permission to build a new house at its site at 407 E. Rosemary St.
The Chapel Hill Town Council approved reconstruction plans Monday night, giving the fraternity the green light to proceed with the effort.
The Town Council granted Delta Upsilon a special-use permit, allowing the demolition of the old structure and construction of the new building.
Chapel Hill Planning Director Roger Waldon said the house needs many repairs and added that the fraternity's decision to rebuild is primarily economic.
"The fraternity wanted to make some changes," Waldon said. "It was more cost-effective ... to replace it."
He said town officials and residents alike seem pleased with the reconstruction plans, partially because there were no major surprises.
"The application was received very well (at the meeting)" he said.
UNC Director of Greek Affairs Jay Anhorn said the new facility might not open until January 2004.
But Anhorn said he is excited about the direction the effort is moving.