District Church Properties Board

1. The pastor should consult with the District Superintendent and the Board on the proposed plan to sell the property and the use of money received from the sale of the same, before the proposition is presented to the congregation for a vote.
2. The Local Church Board should consider the proposition by taking into account all the related facts. When they come to agreement on a proposal they shall recommend it to the church membership for their vote. The membership shall vote at a duly called special church meeting. A two-thirds vote of members present is necessary. (See Manual, par. 103, 104 and 113.8.)
3. The pastor shall submit all the facts on the proposition to the District Superintendent and the Board, for written approval before the sale can be effected.
4. The Local Church Board is authorized, by the vote of the congregation and the approval of the District Superintendent and the Board, to negotiate the sale of the property. Thereafter, all other transactions to formalize the arrangement will be undertaken by the District Office and Resource Center or its Legal Team.

1. The pastor should consult with the District Superintendent and the Board in the formative stages. The District Superintendent and the Board will be interested in knowing the need for the purchase, the location, the size, the terrain, the condition, the price and the ability of the church to undertake the financial obligations.
2. The Local Church Board should either elect a Building Committee or act in this capacity.
3. The Building Committee shall consider the needs of the church, securing the necessary facts to determine what is required to best serve the purpose of the church. They should seek out suitable sites and buildings which can be purchased.
4. The Building Committee should recommend to the Local Church Board a certain site or building for their consideration and approval.
5. The Local Church Board should consider the recommendation and approve or disapprove the purchase and financing plan.
6. The approved proposition is submitted to the District Superintendent and the Board for their advice and written approval or disapproval.
7. The pastor, after consultation with the Local Church Board, shall duly call a special church meeting for the purpose of having the membership vote on the specific proposition. A two-thirds vote of members present is necessary. (See Manual, par. 103, 104 and 113.8)
8. 8. After the Local Church Board, the District Superintendent, the Board, and the membership at the special church meeting, have approved the proposition, the transaction is then referred to the District Office and resource Center or its Legal Team for completion of the purchase.

1. The Local Church Board should either elect a Building Committee or act in this capacity.
2. The pastor and the building committee shall consult freely with the District Superintendent and the Board throughout all stages/phases of this project.
3. The building committee shall consider the church building needs and proposals to meet those needs. Complete studies should be made on the communities served by the church and projections on anticipated population and membership growth. This initiative should be undertaken in consultation with the District Advisory board.
4. The building committee recommends an over-all plan to the Local Church Board for their consideration and approval.
5. The Local Church Board votes to engage an architect/qualified personnel to prepare preliminary plans, not final working drawings, in consultation with the building committee, District Superintendent and the Board.
6. The Board strongly recommends that qualified personnel (engineer, plumber, electrician, etc.) be used to prepare the plans/drawing.
7. The Local Church Board approves the preliminary plans/drawings.
8. The building committee determines the method of constructing the building; such as:

1) Contracting out the building to a general contractor after securing bids,

2) The church serving as the contractor and securing bids for sub-contracts as needed, or

3) Do it yourself.

9. The building committee shall acquire Quantity Surveyor’s report of the total cost of the building and furnishings and submit to the Local Church Board a sound plan for financing the project.
10. The Local Church Board submits the proposition to the District Superintendent and the Board for written approval or disapproval. The district will respond with initial approval and requirements. (See Appendix)
11. The Local Church Board votes to approve the building plans, as approved, and the plan for financing the project.
12. The Local Church Board submits the proposed plans, financing and projected cost to the church membership for their approval in a duly called special church meeting. A two-thirds vote of members present is necessary. (See Manual, par. 103, 104 and 113.8.)
13. The Local Church Board authorizes the final plans or working drawings to be prepared and approved by the necessary local authorities/agencies.
14. The building committee shall secure bids and/or estimates on the building and have these approved by the Local Church Board.
15. Contracts can be signed and obligations incurred to complete the project only after receiving the written approval of the District Superintendent and the Board.

16. The Local Church Board should designate a “Sub-Committee” within the building committee and empower the committee to make “on-site” decisions.

1. The long-range plan for the development of the church facilities.
2. The present proposition under consideration.
3. Give all data concerning the purchase of land, such as; location, size, terrain, zoning and any other related information.
4. Give all data concerning the purchase of buildings, such as; location, zoning, type of construction, size, state of repair, repair or remodeling costs, price and adaptability to church use.
5. Give all data in the construction of a building, such as; site, compliance with zoning and building codes, plot plan, design of building, floor plan, method of construction, total cost of the project including land, building and furnishings.
6. Give complete financial report of the Local Church and her past record (3 year minimum) in meeting her obligations, such as; local expenses, pastor’s care, payment of all church budgets, and the ability to take on the additional financial responsibility.
7. State the total indebtedness you are seeking approval for and give evidence that the Local Church can raise the necessary money to finance the project or the necessary mortgage payments.
8. Give evidence of the desire of the congregation for this project and their willingness to make it a success.
9. Pastor’s commitment and willingness, in faith, to bring this to a successful completion.

1. The Local Church must show the need for the land and/or building.
2. The Local Church must show evidence of increasing morale and dedication to an expansion program.
3. The proposed plan must be adequate, feasible, and in the best interest of the local church.
4. The Local Church must be in a sound financial position as evidenced by financial growth, paying all local bills, providing an adequate pastor’s salary, and paying all the budgets.
5. The complete financing of the proposed project shall be submitted to this board:
6. Present assets including cash on hand, value of church and parsonage property, net income from sale of property, pledges and any other assets.
7. Present liabilities including any mortgages on church and/or parsonage property showing balances due, monthly payments, and name of lender.
8. Present total cost of proposition, including land, building, landscaping and furnishings.
9. Present total indebtedness to be incurred. $ _________________      
10. Show how you will finance this indebtedness. By a Deed of Trust ­­­­ ;

Other                    ; Total amount to be financed $                      ; Interest rate           %;

Years to pay off                    ; name and address of lender 

1. Show a Deed of Trust commitment from a bona fide lending agency.
2. Show the ability of the Local Church to carry the indebtedness and the plan adopted by the Local Church Board to secure the additional monthly payments.
3. Demonstrate that sufficient money is available to complete the project.

<CASH ON HAND>          <GAP>            <DEED OF TRUST>

<TOTAL COST OF THE PROJECT>

Ways to close the gap:

1. Raise more money before starting.
2. Raise more cash during construction.
3. Increase the mortgage, yet under the maximum debt limit.
4. Reduce the cost by economizing in design, layout, materials, and method of construction.
5. A little of each.

The following “guidelines” are used by lending institutions and the Board.

They help to determine the maximum debt-limit a church can prudently carry.  It is essential that each church keep the debt as low as possible.

1. The morale and dedication of the congregation to accomplish this project.
2. The attitude and ability of the local church to meet her local, district and general church obligations.
3. Confidence in the ability of the pastor to lead the church in a successful completion of the project.
4. The total indebtedness should not exceed 60% to 75% of the appraised value of the land, buildings, and furnishings. A qualified appraiser should determine value of the completed project.
5. The total indebtedness should not exceed 3 times the total raised for all purposes in one year. In cases where there has been an unusual rise in the income for one year, the board should average the income over the last three years. (See Manual, par. 237.4)
6. At no time should the debt payment be more than 40% of the residue after regular church expenses are met.