I. Building Program Procedures

1. DEFINITION OF A BUILDING PROGRAM
A “Building Program” (Project) may consist of a sale, purchase, building a new facility, remodeling or adding on to the present facility. The information provided in this manual is specific to purchasing, building a new facility, remodeling or adding on to a present facility, or major maintenance/replacement to the present facility. If a Congregation, Campground or Mission Center intends to sell property please contact Legal Services for “Building Program Guidelines & Procedures for Sale of Property.”

2. PRESIDING BISHOPRIC’S HOUSES OF WORSHIP FUND
Congregational and Mission Center building programs are assisted by the ministry and policies provided by the Presiding Bishopric through the Houses of Worship Revolving Fund (HWRF) program and Legal Services. These policies are designed to bring the resources, assistance, and experience of the World Church to the congregations. All building projects, purchases or sales require prior approval of the Presiding Bishopric. Approval by the Presiding Bishopric reinforces its role as trustee of the church and provides support of the goals of pastoral and witnessing ministries which are at the heart of our mission.

3. CONGREGATION’S DECISION TO BUILD
Decisions about facilities must center on the ministries offered by the congregation, which in turn are determined by the Congregation in response to their particular understanding of the vision and mission of the Church. Property decisions should be made only after considering and balancing the Congregation’s vision, mission, program, and facilities. It is vitally important that the congregation determine and commit to their role in the larger community before finalizing decisions about facilities.

4. BUILDING PROGRAMS
Every project undertaken by an existing Congregation, Mission Center, emerging congregation or campground which involves the purchase, sale, acquisition, construction, or major renovation of real property is considered to be a building program.

5. PRELIMINARY PLANNING
Once the congregation makes a decision that a building program would enhance its ministry, they are ready to begin a planned approach to site selection, design concepts, building functions and construction. Legal Services assists at every step of the building process. The following information provides guidance and policies to be carefully followed in all property matters involving buying, selling, new construction, and renovation.

6. LAND USE
The first step in any building project, whether remodel, add-on, or new build, is to contact City, County and/or State authorities regarding restrictions, codes and zoning that would pertain to the project. All City, County and/or State approvals must be in place prior to beginning a project.

7. ELEMENTS OF A BUILDING PROGRAM
Each Building Program consists of the following elements:

7.1 The Building Project

7.1.1. Description of the congregation's plan for ministry
7.1.2 Discussion of building needs
7.1.3 Description and extent of the project
7.1.4 Development of preliminary building plans (including site plan)

7.2. The Financing Plan

7.2.1 Calculation of estimated cost of the project
7.2.2 Calculation of estimated financial resources
7.2.3 Completion of loan application (if needed)
7.2.4 Production of evidence of ability to repay loan (Capital Campaign)
7.2.5 Analysis of the estimated Impact on Operating Budget

7.3. Legislative and Administrative Approvals

7.3.1 Secure Legislative approval from the Congregation
7.3.2 Secure Administrative approvals

a) Pastor and Congregational Financial Officer (congregations and emerging congregations)
b) Mission Center President and Financial Officer of affiliated Mission Centers.
c) Apostle in charge
d) Presiding Bishopric

8. INITIATING A BUILDING PROGRAM
A building program is initiated by sending a “Letter of Intent” to Mission Center administrative officers and to the field apostle with a copy to Legal Services. This action should be taken as soon as it is probable that a building program is likely to be pursued. Early notification benefits everyone by allowing Legal Services, Fiscal Services and Risk Management opportunity to offer assistance and guidance to each building program.

The “Letter of Intent” should include the following information and attachments:

a) Purpose and need for the building
b) Approximate square footage of the proposed project
c) Estimated cost
d) Funds currently available
e) Approximate loan amount needed, if any
f) Copy of congregational business meeting minutes approving the project.
g) Copy of preliminary building plans

If a Houses of Worship Revolving Fund Loan is needed to assist in completion of the building project the information in 8 a) thru g) above can be provided in the Loan Application itself.

Pastors and Congregational Financial Officers are responsible for ensuring the completeness of the Letter of Intent, and forwarding all necessary legislative and administrative approvals to Legal Services. When all approvals have been received Legal Services will secure final approval of the Presiding Bishopric.

Mission Center officers are expected to be thoroughly informed and deeply involved with each project so as to provide leadership throughout the planning and building process.

9. USE OF ARCHITECT FOR PLANNING, DESIGN AND CONSTRUCTION FOR NEW BUILDS OR ADDITIONS
The planning phase of a project is vital to its success. Building projects can benefit greatly by hiring an architect who is knowledgeable regarding local codes and zoning requirements and is experienced in the specific project type that is contemplated. Legal Services is available to assist in interviewing and selecting an architect.

10. PLAN AND CONTRACT APPROVALS- NEW BUILDS AND ADDITIONS
Submit a complete set of plans, including a site plan, preliminary floor plan, elevations and a fully completed loan application to the Mission Center, with a copy to Legal Services for review. Contracts cannot be signed, nor construction deadlines set, until review of the foregoing is completed and Presiding Bishopric has given tentative approval to the architectural plan, the financing, and if applicable, the Houses of Worship Revolving Fund loan being requested.

Presiding Bishopric approval shall include evaluation of building and financing plans as appropriate for the scope of each project. Even after approval for a building project has been given by the Presiding Bishopric, it is still necessary for construction contracts, insurance and bonding documents and final versions of the building and financing plans to be reviewed and approved by World Church officers.

As the planning process begins, it will be especially important that all code and zoning requirements are cleared by local governing bodies.

11. BIDS/PROPOSALS AND CONTRACTS
It is important to remember that bids/proposals are not contracts.
Legal Services suggests that at least three (3) bids be received on any project. The Congregation has the authority to accept whichever bid they choose, however, bids/proposals are NOT to be signed without prior review and approval by Legal Services. Once the Congregation has selected a Contractor’s bid, the bid is to be forwarded to Legal Services, along with the following:

1) Copy of Congregational Business meeting minutes approving the project and cost.
2 Completed form titled “Contract Information.” (Form is available on Legal’s website.)
3) Certificate of Insurance provided by Contractor
4) IRS Form W-9.

Once the above documents have been received in Legal Services the information will be incorporated into a contract to be signed by the Congregation and Contractor.

12. GENERAL CONTRACTOR
Building projects require a general contractor, who must meet certain insurance and bonding requirements. It is likely that a project will be submitted for approval before many of the particulars,
including the negotiation of the contract with the builder is complete. Any approval given under these circumstances is always subject to the insurance and bonding requirements. All legal documents
must be prepared or reviewed by Legal Services prior to signing them. Upon satisfaction of these items and final approval of the project by local governmental agencies and the Presiding Bishopric, the sale, purchase, or construction may proceed.

13. VOLUNTEERS
Enlisting local volunteer assistance is permissible when practical as a cost saving measure. This may include professionals, skilled craftsmen, and laborers. However, it is important in all such instances that volunteer workers shall be properly coordinated into the project and that appropriate insurance coverage be provided to avoid undue risk to the congregation and the World Church.

14. PURCHASES

14.1. Unimproved Land
Factors to be considered when contemplating the purchase of vacant land for a building site should be carefully weighed:

14.1.1. Long-term needs of the congregation
14.1.2. Parcel size - is the property large enough for a church building, parking, etc.
14.1.3. Potential to influence or control adjacent land
14.1.4. Zoning requirements

14.2 Improved Property
Factors to be considered when contemplating the purchase of improved property:

14.2.1. Suitability of the building such as location, size, parking.
14.2.2. Plan for modifications that may be needed to adapt it to meet the needs of a specific congregation.
14.2.3. Zoning requirements

Consultation with Mission Center officers and the Field Apostle is required in all instances.