1. Getting the Most out of your Buildings and Grounds

2. part I FINDING PARTNERS Fly Eagles Fly

3. MAKE NEIGHBORS Who Is My Neighbor? (Luke 10:29) Make Your Church Known
Churches in neighborhood
Local businesses
Senior centers
Healthcare centers
Childcare centers
Make Your Church Known
Signage on property
Banners
Website
Invite Neighbors into the church building
Invite to worship
Door handle brochures
Invite to church events
Distribute flyers in the neighborhood

4. Why do we want Others to Use the Un-Used and/or Under-used space in Our Churches?
Community Engagement
Outreach
Meals
Food pantry
Homeless shelter
AA/NA meetings
Community group meeting place

5. Need for Income Stream After-school program Day care
Rental to another church
Rental to a small business
Private parties
Arts companies
Fitness
Church-run small business
Ex., printing business for other churches

6. Preparing for rental partners

7. Before you Rent
Evaluate your Campus and consider: What spaces are most attractive? What kind of tenants/partners do you want? What kind of activities you will allow? Then work with the Vestry to establish a Rental Policy (see slide #13)

8. Accommodation AND upgrade of space for new use
Paint
Removal/change old curtains
Repair windows/floors/stairs
Add or improve HVAC
Renovations
Bathroom(s)
Kitchen
Restructure rooms
Interior/exterior signage for new partners
Provide computer/internet/WiFi

9. Must-Haves Insurance Contract/Lease Yours/theirs Workers compensation
Sufficient liability coverage
Workers compensation
Contract/Lease
Agreement for usage of space
Rules
Time
Compensation

10. Marketing your space Signage advertising available space
Ads in local paper
Market events
Diocesan media
Make brochures available at church events

11. Historic Buildings/Designation You need to know if your building is historically designated. This can affect your ability to make renovations or otherwise sell or develop your property Please note: Other parties can request that your buildings be granted historic designation. If this occurs you should be notified in advance that there will be a hearing before the Historic Commission. Should this ever occur please contact the Diocesan Property Manager immediately so that we can advise you.

12. Part II The ABC’s of Rentals

13. Establish a comprehensive Rental Policy
Rental Policy of St. Swithin’s Episcopal Church
This policy guides the rental and use of St Swithin’s facilities. It is understood that this is a guide and that discretion can be used in exceptional circumstances. These policies are informed by the idea that our buildings are a resource that should be used as often as possible for the benefit of both the parish and community. This policy can be revised at any time by resolution of the Vestry.

14. Rental by Active Members
All official parish activities or ministries are not required to fill out a rental form or provide separate insurance.
Active members may use the hall and facilities for private events rent free so long as they schedule the event with the parish office. However, members must compensate the sexton for his time and any extra work that is required (see below). Moreover, they must also provide proof of insurance (see below).

15. Rental by Non-Members/For-Profit Groups
For the use of the parish hall for a party/other gathering, the renter works with the staff and utilizes the standard rental form. Rates are as follows: 1-4 Hours:$300, 4-6 hours: $400. There is an additional $75 sexton’s fee for all such rentals. The kitchen may be used for food prep for an additional fee.
The Parish Hall may be rented on an hourly basis for classes or meetings. The fee is dependent on the size of the group, the nature of the activity and the amount of set up and clean up that will be required. For smaller groups that require minimal set up and cleaning the suggested rate is $30 an hour.
Other rooms may be rented on a case by case basis. The suggested rate is $20 an hour.
In all cases the renters must provide proof of insurance (see below).

16. Rental by Non-Profit/Community Groups
Non-profit, arts and other groups intended to serve the community may use the facilities at a reduced rate. The suggested rate is $20 an hour for the parish hall and $10 an hour for smaller rooms. They should also, if possible, take up a collection to give to the sexton. On a case by case basis the fees can be waived. Such groups are still required to provide proof of insurance (see below). Whenever possible the parish should consider whether or not the purpose of the group and/or meeting is in keeping with our mission and ministry in which case we should explore co- sponsoring/presenting the meeting. This would negate the need for the group to provide insurance (see below).

17. Insurance
Our insurance covers us against all claims regardless of whether it arises from a parish sponsored event or from a third party event. However, it does not cover any third- party users, neither individuals nor groups, regardless of their membership status. Therefore, the renter assumes full responsibility for the actions and safety of all attendees and agrees to defend, indemnify, release and hold harmless Saint Swithin’s Episcopal Church, its employees, agents, directors, vestry and staff, of and from any and all claims, judgments and liabilities including, but not limited to, damage to church property arising from the event.
The renter must provide proof of liability insurance with limits of liability of at least $1,000,000 per occurrence and $3,000,00 in the aggregate to be furnished in advance of the event. This can be either an extension of the renter’s homeowners or a separate rider.
In the event that an individual or group cannot provide this insurance they must sign a waiver acknowledging that they are not covered by our insurance and that they will hold the parish harmless in the event of an incident. Such exceptions must be agreed to by the rector and/or vestry on a case by case basis.

18. Use by Political Groups
Although the diocesan Chancellor has advised that we may allow any group we wish to use the space, any rental/use by an expressly political group, candidate or elected representative, must be approved on a case by case basis by the rector and/or vestry.
This Policy was adopted by the Vestry on (Date)
PLEASE NOTE: This is a sample policy. You will need to develop your own policy based on your congregation’s own resources.

19. Other things to bear in mind before you rent
If you are going to start/continue renting you will also need to keep a calendar of events, a file on all active and past rentals and create allowances in your accounting system for income, deposits, and refunds
Frequent rentals may also require more personnel to handle management, set up/break down and cleaning.
During all rentals you should always have a designated employee or trusted on site when a rental/use by an outside group is taking place. If you have clergy or other staff who live on premises, this can often suffice, so long as the outside group knows who to contact them in the event of an emergency.

20. Insurance Perhaps the most important thing to know about rentals has to do with Insurance. Your insurance DOES NOT cover events that are not explicitly part of the official activity of the church. All outside groups/renters should have their own insurance. This includes parishioners who are renting church facilities for their own private events. For any use of your buildings/grounds by outside groups you need a copy of their insurance. All renters should also sign something that acknowledges that they are not covered by your insurance and indemnifies you. Contact your insurance agent if you need further clarification

21. How do people get the necessary insurance
How do people get the necessary insurance? All businesses should already have it Individuals who rent for parties etc can either: Get a rider through their homeowners or renter’s policy or Get Event Insurance Note: Most 12 Steps groups do not have insurance. If they do not then you should have them sign a Waiver/Indemnification Agreement (see slide #8)

22. What about Alcohol? There are Pros and Cons either way Allowing alcohol makes your church more attractive for party & fundraising rentals Prohibiting it eliminates possible pastoral concerns and can limit liability issues If you do choose to allow alcohol you have the right to set limits on amounts and types of alcohol for non-parish events. For example: Alcohol Beverages are permitted but must be strictly controlled by an adult who is at least 25 years old. No alcohol may be consumed by anyone under the 21. The amount of alcohol that may be brought in is strictly limited to two drinks per person of legal drinking age. A drink is considered 12 ounces beer or 6 ounces wine. Hard alcohol (spirits) and bulk beer kegs are PROHIBITED. The user assumes any and all responsibilities for the distribution and monitoring of alcohol and for its effects and influence on those who consume it. Please note, if you do allow for any parish-sponsored events you must comply with the Diocesan Alcohol Policy

23. Short Term Rentals These include Private Parties Arts groups Community Events Health Screenings Etc. Please note: All groups should fill out a rental/use agreement (including indemnification)regardless of whether they pay or not.

24. Any agreement for rental/use should include Name and contact information Specifics on the event/rental Time of event including arrival, setup, the event itself, departure and cleanup What room(s) are bring used Payment information including due dates Specifics on deposits A check list of when things are received from the renter Agreements should be signed by both parties and both parties and both parties should get a copy. The church should keep a copy of all past rental agreements for at least on year, if not longer

25. Any Agreement should also include
comprehensive Terms and Conditions including:
Member versus non-member rates
Alcohol Policy
Smoking Policy
Monitoring of Children
Off-Limits areas
Use of the kitchen
Furniture
Publicity/Signage
Insurance
Handicapped Access
Thermostats, Etc.

26. Long Term Rentals These tend to be with businesses such as: Schools
Exercise Classes
Other Churches
Rental of rectories
Cell towers
Etc.
We recommend using a qualified professional such as an attorney or real estate agent/broker to help you draw up a lease. We will provide samples of publically available leases upon request.
Details of long term leases will be covered in Part III

27. All leases of 12 months or longer must be reviewed and approved by Diocesan Governance. This includes shorter terms leases that automatically renew.

28. Why is this necessary? 
As Christians, we are charged to be good stewards of the gifts God has given us. What we now enjoy reflects the generosity and labor of those who came before us and it is part of our sacred duty to ensure that it is cared for and managed to the best of our ability so that future generations may also come to enjoy and benefit from it. When it comes to managing and caring for our buildings and grounds, this obligation is particularly pronounced.
To that end, both in the Episcopal Church, and in our Diocese of Pennsylvania, when a congregation seeks to sell, mortgage, lease, grant an easement, or otherwise encumber its real property, it needs to first obtain the consent of the Bishop and Standing Committee. These rules exist to balance the fact that we are all part of a single hierarchical religious organization with a broad interest in ensuring that all assets within our Diocese are maintained and utilized appropriately, even as we respect that every vestry engages in decision making focused on the best interests of the congregation its serves.  

29. In other words, just as your vestry diligently may make a decision in the best interests of your congregation regarding the use of property, the Diocese is also required by our Canons to fulfill oversight obligations relating to how, when, and whether a congregation mortgages, leases, grants an easement or sells its property. This requirement protects your congregation by ensuring that any sales, leases or other arrangements are reviewed by people who have expertise in finance, real estate and the law, at no cost to you. Therefore, before you enter into any contract or agreement, we want to be sure that your congregation knows the who, what, when, and where of Diocesan decision- making on property matters in order to avoid any delays or frustrations as you seek to advance your goals and mission.

30. When do you need to consult a checklist
When do you need to consult a checklist? These checklists should be consulted whenever your parish is considering mortgaging, granting an easement, leasing, or selling its real property. When should you first speak to the Diocesan Property Manager/Diocese if your vestry is considering a sale, mortgage, easement or lease of parish real property? As early as possible. As soon as your vestry begins discussion, a call should be made to the Diocesan Property Manager to give him or her early notice of the possible transaction. Real estate transactions are often complex. The Diocesan Property Manager will help you navigate this process. Guidance may be obtained in advance of any specific transaction.

31. The Process
Our Diocesan Canons require any property transaction to be reviewed first by the Diocesan Property Subcommittee, which makes a recommendation to the Finance Committee, which, in turn, makes a recommendation to the Bishop and Standing Committee. These groups meet monthly, so it is highly recommended that you gather and provide all information sought in the checklist. Therefore, we recommend that you begin the process early so that your request can be evaluated promptly and not delayed for another month because of incomplete submissions.
Throughout this process, and even before your parish is ready to seek final approvals, it is wise to remain in touch with the Diocesan Property Manager who may be able to tell you early whether there are issues in your proposed transaction likely to cause concern and a possible delay in decision-making. As we hope you know, everyone at the Diocese wants to help your parish in its work, and not hinder your efforts to pursue your goals, but we need your help so that we can do our job on a schedule that works with that of your parish and can promptly let you know if we see something that might require an adjustment to your plans.
In addition, at any step in the process, the Diocese may seek information in addition to what you are asked to provide in the checklist. It might also discuss with you whether its approval will be issued with a condition – for example, a condition that the parish put some or all of the sales proceeds be placed in trust, with access to the principal permitted only with consent of the Bishop and Standing Committee, or a condition that prior Diocesan loans be repaid.

32. Diocesan Checklist for Approval of Leases of Property
Necessary Action/Documentation Provided
Date to Property Manager or Committee
Contact the Diocesan Property Manager and Provide him/her with documents identified in this checklist
No less than one week prior to the monthly Property Subcommittee meeting (usually held on the 1st Thursday of the month) to inform him of the proposed transaction and the parish’s need for Diocesan approval.
Get in touch with the Chair of the Diocesan Property Subcommittee
Tell him or her that the Congregation intends to seek Diocesan approvals of a real estate lease and provide any documents identified in this check list or arrange to have them delivered to him/her by the Property manager.
Provide him/her with a written Resolution by the Vestry
This Resolution must authorize the property transaction and include the reasons why the transaction is in the best interests of the Congregation’s mission and ministry.
Intended use of the rental proceeds
If not included in the vestry resolution, a Parish’s written statement regarding the intended use of the proceeds. This statement must be approved by its vestry.

33. Proposed Lease Agreement
Rental Price is Fair
Written materials to show that that the rental price to be paid by tenant is fair (such as competing rents in the area, parish’s inability to obtain tenants at a higher rental rate, information from a broker working for the Congregation or from another real estate specialist etc.). These materials must be endorsed by the Vestry. See Question 6 (b) on page 4 for other information required under certain circumstances.
Less than fair value
If the property is being leased at less than its fair rental value, a statement approved by the vestry as to why the transaction serves the best interests of the Congregation, and its mission.
Proposed Lease Agreement
Provide a copy of the lease agreement and, unless the lease contains this information, the property’s address and the name and address of the tenant.
Any brokerage or listing contract used by the Parish.
Parish Financial Information
Most recent annual budget, parochial report and audit, and treasurer’s report.

34. Questions to be submitted on this checklist to the Property Subcommittee
(some questions will be answered on the face of any lease agreement and if so, you may so indicate)
Yes (add details) No
1. Deconsecration
Does the property need to be deconsecrated?
2. Title and Deed Restrictions
Is the title to the leased property held in the name of the congregation? If not, identify name on the deed. Has the deed been reviewed for use restrictions?
3. Rent
If the lease automatically renews, are there provisions regarding future increases in rent? If not, why not? If so, how were the economic terms regarding increased future rent determined?
4. Maintenance
Does the lease allocate responsibility for maintenance of the property and if certain maintenance obligations belong to the congregation, are they specifically spelled out in the lease?
5. Access
Does the lease provide landlord with reasonable access to the leased property for inspection or other purposes?

35. 6. Security Deposit
(a) Does the lease include a requirement for a security deposit?
(b) If the security deposit amount is less than two month’s rent, provide the basis for the decision to use a smaller deposit amount as part of the statement described Rental Price statement.
(c) Have arrangements been made to hold the deposit in the appropriate, segregated interest bearing account during the period of the leasehold?
(d) Does the lease permit landlord to use the deposit upon notice to tenant if and when tenant fails to pay either rent or other financial obligations?
(e) Does the lease require tenant to replenish the security deposit or face eviction in the event it is depleted in whole or in part by landlord’s withdrawals?
(f) In the event that the tenant does not make payments required under the lease other than rent (such as payments for insurance, any and all taxes or licensing payments), can the parish use the lease deposit to make said payments and require tenant to replenish the security deposit?
7. Confession of Judgment
Is the lease appropriate for the use of a Confession of Judgment provision?
8. Review by Counsel/Broker
(a) Was the Lease reviewed by an attorney or a broker working for you?
(b) If yes, the name of the individual who reviewed the lease.
(c) State whether that person recommended changes to the lease which were not accepted by the tenant and the changes proposed.

36. 9. Inspections and Licensing
(a) Have you determined whether your township or county requires any particular inspections or licenses prior to entering into a residential or commercial lease?
(b) If licensing or inspections are required, specify the nature thereof, whether they have been obtained or occurred and attach copies of licenses or inspection documents generated by that process.
10. Added Rent-Taxes or other fees (all leases)
(a) Does the lease require the tenant to assume the burden of any real estate taxes or other taxes which may arise by reason of the leasehold?
(b) If no, explain why not.
11. Insurance (all leases)
(a) Does the lease require the tenant to insure the property during the tenancy?
(b) How much insurance is the tenant required to have and how was that amount determined?
(c) Has proof of insurance been obtained from tenant?
(d) If the lease automatically renews, is there a process in place which insures that that the tenant has annually satisfied the insurance requirements?
(e) Does the lease require the insurance to name as additional insureds the Parish, those listed on the deed, and the Diocese of Pennsylvania, and is this shown on tenant’s proof of insurance?
(f) Have you spoken to your broker to see if your parish insurance is adequate in light of the tenant’s presence on the property?

37. 12. Non-Residential Leases (include all information above, plus the following)
(a) Has an insurance broker been consulted to determine the types and amounts of insurance that the tenant should be required to have in place in light of the non-residential use of the property?
(b) If yes, what did the broker advise?
(c) Were the broker’s recommendations followed and if not, why not?
(d) Have you determined what licenses, if any, are required by tenant to use the leasehold for his business or other operation?
13.Non-Exclusive Leases or similar agreements (e.g., use of a parking lot three days a week, use of school buildings on particular days)
(a) Has an insurance broker been consulted to determine whether the tenant requires its own insurance, and the amounts thereof, for its non-exclusive use of the property, or whether the parish’s insurance needs change by reason of tenant’s limited use of the property?
(b) Does the lease require the tenant to assume the obligation to pay any taxes imposed on the parish by reason of the non-exclusive lease of its property (e.g., the parish may be required to pay a pro-rata real estate tax)

38. Part III Leases, Taxes & Maintenance

39. Does The Parish Need To Hire A Realtor? Interview Process
Realtors
Does The Parish Need To Hire A Realtor?
Interview Process
Is the Realtor Active In The Community?
References
Commission
Residential Commission Typically One Month Rent Plus Fee For Any Township Permits
Commercial Commission Typically 6% as Collect or 4$ Paid at Rent Commencement
Listing Contract
Review by Lawyer
Length of Listing
Reporting
Establish a Weekly Schedule

40. Leases Residential Establish Rent With Market Comps Credit Check
Term of Lease (1Year)
Rent and Deposit
Space Preparation For Occupancy
Utilities
HVAC Inspection
Maintenance Responsibility
Photos In and Out
Taxes
Confession of Judgment
Diocesan Consent

41. Commercial Establish Rent With Market Comps Term of Lease Credit Check
Rent, Increases, and Deposit
Space Sharing
Space Preparation For Occupancy
Utilities
HVAC Inspection
Maintenance Responsibility
Photos In and Out
Taxes
Confession of Judgment
Diocesan Consent

42. Make sure the lease accounts for who will pay for: Utilities Paper goods Routine cleaning Snow removal Taxes (see next slide)

43. Taxes If a church rents out a significant portion of its space on a regular basis, it may incur a tax liability. It does not matter if the tenant is non-profit or for profit If a tax liability is incurred it would be based on the percentage of the building that is rented. The church would then be obligated to pay that percentage of the tax bill that would normally waived. For example: St. Swithin’s rents 25% of it’s parish hall to a Zumba class. Their parish hall is assessed at $5,000 in annual taxes. Because of the commercial rental the parish would owe $1,250 in taxes on the hall. Note: if you are in Philadelphia make sure your lease states that the tenant is liable for any Business Privilege Tax that might be incurred.

44. Building Maintenance Overview
Sacred Space
Worship and Fellowship
Asset of Parish and Diocese
Value as “Real Property”
Use of surplus land or buildings
Vestry Responsibility
Financial Oversight
Property Oversight
Parish Property Committee
Appointed by the Vestry to assist in property issues

45. Building Operation Checklists
Checklist Items
Grounds
Sidewalks
Church Yard
Parking Lot
Public Gathering Spaces
Trees
Buildings
Roof
Structure
Gathering Areas
Systems
Plumbing
Electrical
Heating and Cooling

46. Five Year Building Plan
Site and Grounds
Sidewalks
Parking Lots
Building Exterior
Building Wall Cracks and Pointing
Missing Stones/Bricks
Roof
Missing Slates or Shingles
Hanging Gutters
Bell Tower/Steeple
Chimney
Convert From Oil To Gas?
Building Interior
ADA Compliance
Mechanical Equipment
Plumbing Upgrades

47. Building History
List of Buildings
Building Square Footage
Architect
Engineer
Year Built
Original Or Updated Plans
Contractor(s)

48. The Growth Development Fund
• It is a five-year program.
• Grants are for deferred maintenance that will enhance a church’s capacity for ministry or the need for capital improvement.
• Determinations will be made based both on an evaluation of the urgency of the need and the potential impact it may have on the congregation’s life and ministry.
• Awards will be for projects under $30K. A church that receives a grant will be expected to report the following year on the progress of its enhanced ministry and the effect on the congregation.
• For Year 1, applications are being accepted from January 15, 2018 – March 16, Apply Now. See application below. Churches that need help filling out the grant can contact Canon Doug Horner,
• Awards are not made on a first-come, first-served basis.
• Churches that do not receive a grant in Year 1 may apply the following year. Once you receive a grant in this program you cannot apply for another one.
• Awards will be announced by May 1, 2018.

49. The church’s name and address
Please answer the following questions, using additional pages if necessary. Please also provide the following documentation as listed
The church’s name and address
The name and contact information for a designated point person
Description of the Project: What is the proposed project? How much will it cost? What is an approximate breakdown of how the fund will be spent: Labor? Materials? Etc.? What is the timeline for its completion?
How will this project contribute to the growth, life and mission of the church?
A copy of the following:
a) The 5 most recent parochial reports
b) The most recent financial reports
c) The most recent annual budget with current year to date figures
d) Minutes of the Vestry meeting indicating approval of the proposed project
6. Written endorsement of Dean of the congregation’s Deanery
Please submit all materials to Canon Doug Horner at
Applications will be forwarded to the special subcommittee of Diocesan Council which will review them make recommendations to the Bishop for approval.

50. Go in peace to love and serve the Lord!
Thank you for joining us!
Any questions please contact us.
The Rev. Canon Kirk Berlenbach:
Canon Douglas Horner:
The Rev. Canon Betsy Ivey:
Mr. Sean McCauley:
We are happy to come to your congregations, tour your property, meet with your vestry, or do anything else to help support you as you seek to know Jesus and to make Him known in the world as a people of prayer, proclamation and peace.
Go in peace to love and serve the Lord!