Chapter 4: Contract Release Procedures
Introduction
ICC Membership and Occupancy Contracts are legally binding documents signed by both ICC members and ICC authorized signers. Members can be released only by the following options: Replacement, Buyout, or Voiding. The original member shall be responsible for paying all monthly charges and completing all work requirements, until official notification of release is received from the ICC office.
House Role in Contract Releases
Individual co-ops may release members from the house portion of charges according to house procedures, but they do not have the authority to release members from their ICC contract. Houses that choose to release members from house charges take responsibility for paying any costs remaining for spaces vacated by released members. A House Charges Release Form must be turned into the ICC Finance Office by any house officer unless otherwise specified in the house constitution.
Contract Release Options
- Release by Replacement
- A current member with a signed ICC contract can be replaced by any person who does not have a contract for the term in question. Although strongly encouraged, replacement members do not have to sign for the same house or room, except for King House.
- In order to be fully released, the incoming member must be able to fill the entire remainder of the contract.
- In circumstances not covered above, a member may petition the Contract Release Committee.
- A current member with a signed ICC contract can be replaced by any person who does not have a contract for the term in question. Although strongly encouraged, replacement members do not have to sign for the same house or room, except for King House.
- Release by Committee
- Contract Release Committee (CRC) and Emergency House Operations Team (EHOT) have the power to release a member from their contract.
- EHOT procedures are in the Committee on Conflict Resolution policy. Written documentation is always required, regardless of automatic release cases or non-automatic release cases. Sexual Misconduct, Prejudicial or Criminal behavior cases are eligible for voiding a member contract.
- Appeals
- Definition: An appeal is a safeguard for an imperfect human process that attempts very hard to be fair. It allows for a case to be heard by a different body than the one that made the initial decision.
- Reasons for Appeal: Any member may appeal a CRC decision for the following reasons:
- The CRC did not follow proper procedures.
- Evidence provided by the member does not support the CRC’s decision.
- There is new evidence that was not reasonably available at the time when the initial petition was made to the CRC.
- Procedure: If the CRC makes a decision that the member wishes to appeal according to the reasons listed above, the member must inform the CRC in writing within 14 calendar days of receiving the committee’s decision. This appeal will then be brought before the Operations Management Committee, which will decide whether there is sufficient reason to hear the appeal and, if so, to confirm or overturn the CRC’s initial decision. The Operations Management Committee’s decision is final and must be reached within 14 calendar days of receiving the appeal.
- All decisions made by the CRC (or by the Operations Management Committee, in the case of an appeal) shall be reported to the Director of Financial Services and the Director of Housing.
- Automatic Release: The following are cases for which members can automatically be released from their contract. Supporting documentation, in writing, is always required. The Contract Release Committee shall review and approve all cases of automatic release.
- Call to Active Duty: members can be released one month before their induction date into the armed forces.
- Flunked out of School and Leaving Ann Arbor: the action must be initiated by the school. It cannot be the member's choice to withdraw from school.
- Uninhabitable Room
- Debilitating Illness or Hospitalization that prohibits a member from living in the ICC.
- Boarder Releases: After they are completely released from house charges
- Death
- Non-Automatic Releases
- The ICC generally does not grant releases outside of the automatic releases described in these rules except in the most unusual circumstances. The ICC may release a member from obligation for the full or partial contract. The Contract Release Committee shall notify the Director of Finance and the General Manager when decisions are made.
- CRC will consider all petitions submitted, regardless whether a house has released a member from house charges or not. In such cases where opposing viewpoints exist, the committee will reach out to the members and house equally.
- Release by Buyout
- Overview: A contract buy-out is a fee members can pay in order to be released from their ICC contract. The buyout process will not commence until a house confirms a member has moved out.
- Eligible Contracts: The following contracts are eligible to be bought out:
- Fall/Winter
- Fall-Term
- Winter-Term
- Spring/Summer
- Fees: The buy-out fee for a Fall/Winter contract is nonrefundable and is not affected by any future signings for that space, or prior release from house charges. It is equal to 2 months’ worth of monthly charges (ICC, utilities, and house.) Any additional balances due to the ICC are also due at time of payment. The exiting member also forfeits their right to all rebates and will not be charged any assessments. The member will not be released from their contract nor receive their member shares until the full buyout payment is received.
- Distribution of Buy-Out Fee: The contract buy-out fee shall be distributed based on the budgeted amounts, i.e., the portion calculated from house charges will go to the house, while the portion calculated from ICC charges will go to the ICC.
- In the event a house releases a member from house charges, the buy-out fee shall be reduced proportionally and the fee will go to the ICC.
Voiding Contracts
- Overview: Voiding a contract is cancellation of the obligations of a member for their contract and all attendant rights as detailed in the contract by the ICC. Contract releases must be voluntary on the part of the contract holder whereas a contract voiding can be done without the consent of the member if any of the following situations applies:
- Non-Payment of Debts: please see Finance Committee Policy for contract voiding processes related to non-payment of debts.
- Error by ICC: The Board of Directors, or Operations Committee, may vote to void a contract and refund all or part of the membership fee in cases where error on the part of the ICC or its agents has blocked fulfillment of the contract. No such refund will be made to a person who has lived in the ICC for more than three weeks prior to discovery of the error or request for the refund. If refund is made, the Board, and/or the Operations Committee, shall determine the source of error. This section shall not apply to cases of eviction.
- Previous Member Overstay: The overstay of a previous contract holder in the space to be occupied by the new contract holder is not the responsibility of the ICC and is not reason to void a contract.
- EHOT Investigation: for Sexual Misconduct, Prejudicial or Criminal Behavior
Operations Management Committee Jurisdiction
- Interpretation: The Operations Committee (OpsCom) has the power to judge the correct interpretation of Chapter 4 of the Standing Rules.
- OpsCom Policy: The Operations Management Committee may approve supplemental rules and policies as necessary.
- Appeal: All decisions made pursuant to this chapter of the Standing Rules may be appealed to the Operations Management Committee in writing within a month of the decision.