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Title 10: Impairment to Capital/Fiscal Crisis

10.00 Definition of Capital Fiscal Crisis / Article: X


The SHC maintains certain restrictions on House sovereignty to ensure the safety of its Members and the functional operations of its Houses. In the case that a House becomes a serious risk to the system as a whole, its operations may require externally-guided change under Article X (see Title 9). Houses retain any powers not expressly granted to the SHC Board of Directors (“the Board”) or any other body within the SHC.


All of the Houses that are associated as part of the SHC rely on each other for support in matters of finance, education, membership, maintenance, and physical development. If the situation at any one House becomes such that it will adversely affect all the other Houses and damage the stability of the SHC as a whole, then that House must be considered a candidate for an Article X intervention.


All Houses reserve the right to assist any member Houses in crisis. In the cases of Article X, SHC officers are given the authority, on behalf of the Houses, to intervene and assist such a House. This assistance will last only until the House is out of the crisis situation as understood by the Board.


The Board, with a two-thirds majority vote, may declare a House on Article X on the recommendation of respective officers and staff and with the input of the candidate House at a meeting of the Board.

10.01 Article X: Membership


Article X: Membership is the measure to assist a House that is suffering from low membership, such that would infringe on the House’s ability to remain a participating member within the SHC.


When a House's membership falls below 60% of the regular SHC-assessed capacity the following shall occur:

  1. a. House membership policies and new member recruitment shall fall under the authority of the Vice President of Membership.
  1. b. The Corporate Treasurer shall establish a payment plan such that each member shall pay a rate at least equal to the highest current rate in the SHC system.
  1. c. If the House is incapable of filling, the Board may appoint the Executive Committee, headed by the Vice President of Membership, to approve new members.
  1. d. Other measures as advised by the Vice President of Membership and approved by the Board shall go into effect.
  1. e. A House may petition to have an emergency reduction in assessment with the same consequences as 6.04.
  1. f. The Board may move to declare Article X on grounds of financial crisis.

10.01.02 – EXCEPTIONS

If assessments are met, then Article X: Membership cannot apply except by two-thirds vote of the Board.


These measures shall cease when a House reaches 80% of its total assessed regular SHC capacity and the House can normally cover SHC assessments.


When a House is declared in violation of Article X due to insufficient membership the Board of Directors may declare the affected House an “Open SHC Membership House.” Any member may apply to the Vice President of Membership to move to that House under the following guidelines:

  1. a. The member may elect to move to an affected House for the duration of his or her contract.
  1. b. If a member has only one semester remaining in his or her contract, he or she can only apply under the terms of these guidelines.
  1. c. This person must be a member in good standing and have a zero balance with the original House upon moving into the affected House.
  1. d. This Member will become responsible for all charges required of Members of the House under Article X.
  1. e. The contract with their original House shall be nullified when the new contract goes into effect with the affected House.
  1. f. All applicants shall be carefully screened by the Executive Committee, headed by the Vice President of Membership to determine their suitability to the living situation of the affected House.
  1. g. The number of assessments of a House that has members move out (under these provisions) shall be lowered by one assessment for every member who moves.
  1. h. The assessment change shall be in effect for the duration of that person's contract or until the space is filled whichever comes first.
  1. i. Priority shall be given to those in non-singles and to those who have skills that are particularly needed by the House.
  1. j. The number of members that can leave any given House is limited to the number that would reduce House membership to 85% of its total SHC capacity.
  1. k. Members who are acceptable to the affected House and the Executive Committee headed by the Vice President of Membership may move regardless of the wishes of that member’s original House.
  1. l. These provisions will cease when a House has reached a level of membership high enough to no longer be considered impairment to the capital on the grounds of insufficient membership.

10.02 Article X: Finance


House will be placed on financial probation as a precursor to Article X: Finance based on the following procedure:

  1. a. A House Treasurer who submits transmittal forms or monthly House paperwork late shall be levied a $15 fine.
    1. i. A House whose House Treasurer submits forms or paperwork late five times within the twelve month contract period will be placed on financial probation.
  1. b. A late form or paperwork not submitted within two weeks of the original deadline will be considered a failure to submit financial information.
  1. c. A House whose House Treasurer fails to submit financial information twice within one semester will be placed on financial probation.


All of the Houses that are associated as part of the SHC rely on each other for support in matters of finance, education, membership, maintenance, and physical development. If the situation at any one House becomes such that it will adversely affect all the other Houses and damage the stability of the SHC as a whole, then that House must be considered a candidate for an Article X intervention.


The conditions of financial probation are the following:

  1. a. All House books shall be immediately turned over to the Corporate Treasurer.
  1. b. All House bookkeeping will be done at the SHC office between the Corporate Treasurer and the Member Services Coordinator, supervised by the Corporate Treasurer.


All Houses not submitting their House books to the SHC office within seven days of notification of their financial probation and/or a House who does not replace their House Treasurer within 30 days of notification of financial probation will be declared Article X: Finance.


The probationary period will continue until a new House Treasurer has been installed and trained, with all payments to the SHC being current.


Article X will be invoked for a House on Financial Probation of one if the following happens:

  1. a. Failure of the House Treasurer to meet with the Corporate Treasurer in response to an overdue House budget, as per 7.03.01 ©.
  2. b. A House’s membership is such that regular House assessment is unable to be met by the current House membership.
  3. c. The Board declares the House to be in fiscal crisis due to extenuating circumstances.


The following measures will be taken on any House declared Article X:

  1. a. The House's finances shall fall under the authority of the Corporate Treasurer and the Board.
  1. b. All House members shall be put on a payment plan approved by the Corporate Treasurer, the Executive Director, and the Member Services Coordinator.


The measures shall stay in effect until the House has developed a working House budget and is generally out of fiscal crises as judged by the House Treasurer, Corporate Treasurer, Member Services Coordinator, and the Executive Director.


The duties of the Corporate Treasurer and the Member Services Coordinator toward a House on Article X shall consist of:

  1. a. Signing all House checks.
  1. b. Full responsibility for collecting all House member payments, assessment fees, damage deposits, phone bills, fines, and other moneys payable to the House or the SHC.
  1. c. Maintaining receipt files for all payments received, regardless of payment amount or method of payment.
  1. d. Paying all House bills by their due date, determining the priority of each bill.
  1. e. Keeping an accurate, itemized legible record of each member's account, semester budget, fines, phone bills, and other accounts as deemed necessary.
  1. f. Serving as financial spokesperson for the House at any appropriate situation (dealing with banks, the SHC, utility companies, suppliers, etc.)
  1. g. Closing the House books at the end of each semester in the case that the House remains on Article X at the end of the semester.


The Board may, on recommendation from the Corporate Treasurer and Member Services Coordinator, appoint a Financial Liaison to assist the House on Article X in the management of its finances.


The duties of the Financial Liaison shall include at least:

  1. a. Formulating, in conjunction with the House Treasurer, Corporate Treasurer, and/or Member Services Coordinator, the semester budget for the Article X House.
  1. b. Bringing all House bills, bank statements and all other relevant financial materials to the SHC office.
  1. c. Maintaining copies of the House records, which will be revised on a bimonthly basis by the Corporate Treasurer and Member Services Coordinator. These files must be open to any House member who wishes to see them.
  1. d. Keeping other officers and members of the House advised as to the status of the semester budget at House meetings.
  1. e. Attending all Finance Committee meetings.
  1. f. Writing or revising, in conjunction with the House Treasurer, Corporate Treasurer, and Member Services Coordinator, any deficient financial sections of the House constitution and submit them for final House approval.


A House shall be removed from Article X: Finance when:

  1. a. It has a working House budget and the House Treasurer understands the House budget as well as the operation of the SHC accounts; or,
  1. b. The House membership is such that regular House assessment can be reached; or,
  1. c. The Corporate Treasurer, House Treasurer, Member Services Coordinator, and Executive Director recognize that the House is out of fiscal crisis.

10.03 Article X: Maintenance


All Houses are required to be kept reasonably maintained and clean by their residents. To ensure this, the Maintenance Vice President shall conduct inspections of each building’s common areas each month.


The inspection forms used shall be approved by the Board and shall have the final rating scales based on a percentage, one for maintenance and the other for cleanliness.

a. Houses that fall below 70% on either of the scales will have failed that inspection and the Maintenance Vice President shall issue that House a written warning.


When a warning is issued, the House shall have seven days to correct the problems listed in the warning and reach a score of 70% or higher. The Maintenance Vice President may extend the warning period.

  1. a. If the problem has to be corrected by the SHC, then that House will be charged for time and materials it takes to correct this problem.
  1. b. If a House fails two consecutive inspections, then that House shall be reviewed by the Maintenance Committee for consideration of Article X: Maintenance. A full report will be submitted from the Maintenance Committee to the Board.


When a House is declared Article X, a Maintenance Manager shall be hired and supervised by the Maintenance Vice President and Maintenance Coordinator at a contracted amount, to serve until the House passes the next inspection. First preference shall be given to members of the Maintenance and Physical Development Committees.

  1. a. The salary of Maintenance Manager shall be charged to that House's account at a rate equivalent to $1.75 above the hourly minimum wage with a maximum of 15 hours per week.
  1. b. Houses must restrict any functions that may jeopardize any repairs/renovations performed by the Maintenance Manager or House Maintenance Officer.


If the House falls below 85% on either of the scales during the probationary period, Article X shall be declared.

  1. a. Houses shall be placed under a three-month probationary period after Article X is lifted.
  1. b. If the House falls below 80% on either of the scales during the probationary period, Article X shall be declared.


Rental properties are not included in Article X: Maintenance guidelines.


The above actions may be appealed to and rescinded by a two-thirds vote of the Board.

10.04 Article X: Education


  1. a. Article X: Education is to be seen as a measure to provide further support and help to a House, rather than seen as a punishment. Article X: Education is the concern for Houses that lack a sense of how to run as a co-op. This lack of how to function as a co-op may be seen through a lack of understanding or maintaining job responsibilities and miscommunication or no proper form communication, therefore resulting in a complete breakdown of House functions due to various educational and communication reasons.
  1. b. This sort of a breakdown within a House can adversely affect particular individuals within a House and can get as extreme as affecting other areas and committees within the SHC. Often some sort of interaction and outside help may be needed to correct and prevent larger problems from occurring. Article X: Education is a way for the SHC to be further aware that a concern or a problem may exist in a House.
  1. c. Article X: Education, as a policy, is meant to remain as general as possible to encompass any educational or communication problem or concern that may arise at any level with the SHC. This policy is meant to help strengthen our Houses and not meant to hinder in any way.


  1. a. Concerns for House-level education or communication problems may be defined as an internal House concern dealing with one or a few members. The concern for the House at this level may not come into conflict on a larger SHC-wide level, but may be a concern to the successful functioning of the House. The following are a list of some suggested internal House concerns that any individual House member(s) may have. Further solutions on how to address these issues are explained in the procedures under 8.03.02 (a).
  1. Internal House Concerns
  2. ● Factionalism or cliques
  3. ● Member apathy
  4. ● House members not knowing how to start jobs, etc. for the semester
  5. ● House jobs not being completed
  6. ● Chronic absences at House meetings
  7. ● Chronic lack of regular House meetings
  1. b. Concerns for more extreme House-level break down of communication and education can occur in many ways. At this level the House may be suffering problems that tremendously affect the entire House and has an effect upon the SHC in some way(s). The following is a list of suggested House concerns that affect the House on a larger level and affect the SHC on a larger scale. Solutions on how to address these issues are further explained in the procedures under 8.03.02 (b).
  1. External House Concerns
  2. ● House constitution not updated
  3. ● High percentage of new people
  4. ● High member turnover in the summertime
  5. ● Absences at Education Committee meetings or other meetings
  6. ● Reports of harassment or constant complaints
  7. ● Violations of corporate documents
  8. ● Communication problems
  9. ● Vice President of Education or others asked to facilitate and/or observe House meeting(s)
  10. ● Problems with the police or neighbors
  11. ● Late or no assessment payments
  12. ● Problems in all areas of House functioning
  13. ● Break-ins and thefts
  14. ● High vacancy rate in the House


  1. a. Individual members of a House may feel that some issues may be of concern and need to be further addressed by the entire House. The individual members are suggested to try the following procedures before approaching the Board:
    1. i. Address the issue(s) at a House meeting. If this is an uncomfortable measure, then;
    2. ii. Address the Vice President of Education and/or any other corporate officers and staff. Ask for suggestions/information to solve or work out the problem.
    3. iii. The individuals shall address the House using this further information or invite the Vice President of Education and other corporate officers to visit the House and advise House members on how to solve the problem.
    4. iv. It is also suggested that the House, corporate officers and/or staff look into the possibility of bringing in an outside resource person who can deal with these problem issues on a professional and trained level (e.g., the NASCO Member Services Director or any other professional communicator).
    5. v. The corporate officers/staff shall discuss the issue(s) and decide mutually by all parties that the problem(s) needs or doesn't need to be further addressed.
    6. vi. If it is mutually felt that this issue doesn't need to be further addressed, the original corporate officers/staff and the original concerned House member(s) shall follow up on the concerns after a two-week period.
    7. vii. If the issue has not been solved through the above steps or if the House mutually agrees with the corporate officers/staff that there is a larger problem,
    8. viii. The concern(s) is taken to the Board as a discussion item, only with consent and further communication of both corporate officers/staff and the majority or strong concern of many of the House members.
  1. b. A House may suffer from a further break down of communication and education that may affect the SHC as a larger entity or the House on a larger scale. The following is suggested as an alternative route of action to 9.03.02 (a), and as an alternative direction for the SHC to take:
    1. i. By a strong concern of the House Board Representative (or other Board members) at a Board meeting,
    2. ii. By a strong concern of 10% of a House, or no fewer than two House members at a Board meeting (or other committee meeting).
  1. c. The Board will make the final decision to extend Article X: Education to a House. The Vice President of Education and other corporate officers/staff, if needed, will be responsible for addressing problem issues and will work closely with the House in accordance with 8.03.03.


  1. a. The following procedures are suggested means that a House would go through when under Article X: Education:
    1. i. Ask the Vice President of Education to advise or facilitate at all House meetings.
    2. ii. Receive input and resources from an outside professional communicator.
    3. iii. Emphasize the importance of education and communication and detail particular aspects of these topics as related to the problem(s).
    4. iv. The Education Committee, Vice President of Education, and any other needed parties, shall help teach SHC policy, create new policy, hold in-House workshops, lock-ins, other educational events, and/or any other means to build stronger communication and member responsibility within the House.
  1. b. If this does not work:
    1. i. Have one or more co-op member coordinators to move in.
    2. ii. Begin new recruitment for the House.
    3. iii. Recolonize the House or close down the House and re-open it.
    4. iv. Perform any other means as seen necessary by all parties based on the severity of the problem.
  1. c. All of these procedures shall be strictly communicated with the Board and the Board shall further advise any concerns or direction that a House under Article X: Education may need to take.


  1. a. A House may be removed from Article X: Education when the goals that are created by the House, the Board, and the SHC officers, and staff, are reached in a way that is agreeable to all parties.
  1. b. The suggestion to remove a House from Article X: Education must come from the advisor (Vice President of Education, other SHC officers, staff, Board representatives, House members, or professional communicator) at a Board meeting. After the decision is to be made to remove a House from Article X: Education, this House shall be monitored by the House President, Board representative, and those who were the original advisors (Vice President of Education, SHC officers and staff, etc.).?

10.05 Reboot / Refresh


A motion to recolonize shall be introduced to the Board one week prior to voting; the affected House shall be notified one week prior to introduction of the motion to the Board.


All old members wanting to return will have their future contracts reviewed and approved by the Membership Committee.


The Vice President of Facilities and the Maintenance Coordinator will tour the House to determine if maintenance concerns need to be addressed.


The Membership Committee will choose up to two House Coordinators to live in the House. Coordinators shall:

  1. a. Be trained by the corporate officers and staff.
  1. b. Aid all House officers all throughout the semester.
  1. c. Report to the Board every two weeks on the status of the House.
  1. d. Act as House President, conduct all House meetings, and assist in assigning House jobs.

For all of the above, the House coordinator(s) will be compensated with assessment for the first semester.


The corporate officers will conduct bi-weekly, one-on-one meetings with the House officers to assess the progress of the House. This will go on as long as the corporate officer thinks it is needed or until the end of the semester.


At the end of the first semester of the contract period, a report will be prepared and submitted to the Board by the House coordinator(s) to assess the success or failure of the recolonization. If it is successful thus far, the House will return to normal operations. If it has failed thus far, the Board will decide what to do at that time.

policy_documents/code_of_operations/title_10/title_10.txt · Last modified: 2020/01/10 12:36 by itadmin