Related Entities

HLC will review and hold only the accredited or candidate institution responsible for fulfilling HLC’s Criteria for Accreditation. However, where some aspects of institutional decision-making are controlled by a non-accredited related entity including a corporate parent, system administration or board, religious sponsor, funding sponsor (which, in some cases, may include an equity or investment fund), or other entity, the institution shall be responsible to HLC for presenting, explaining, and evaluating all significant situations involving such related entities that may affect its compliance with accreditation requirements. HLC will consider that an entity that has 50% or more ownership interest in the accredited entity or has 50% or more voting interest in the accredited entity’s board constitutes a related entity. 

The institution shall exercise this reporting obligation following HLC instructions at the time it initiates the Eligibility Process, applies for candidacy or initial accreditation, or files a self-study or other document prior to reaffirmation of accreditation. The institution will also exercise this reporting obligation when it informs HLC, through HLC’s change process, of any change in ownership or other changes as outlined in HLC policy on Substantive Change: INST.G.10.010. 

HLC may, at any time, request information about a situation that the institution may not have disclosed. 

Policy History

Last Revised or Edited: June 2023
First Adopted: November 2007
History:* renumbered November 2012 (former policy number 3.7); revised June 2020; edited February 2021; revised June 2023
Notes:

* In the history, “revised” indicates that the HLC Board of Trustees adopted changes to the policy, and “edited” indicates that HLC staff made technical amendments or minor editorial revisions that did not require formal Board approval.