Building And Financing Manual 2 25 09 26

Building-Financing-Manual-2-26-09

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BuildingandFinancingManual

forParishesin

TheDioceseofAtlanta

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THEDIOCESEOFATLANTAFINANCEOFFICE

2744PeachtreeRoad,Atlanta,Ga.30305

404‐601‐5320/toll‐free800‐537‐6743

TABLE OF CONTENTS

Page Number

Section I. Introduction

• Introduction 2

• Process Checklist 2

Section II. Process Required by Commission on

Church Architecture and Church Construction

• Purpose 3

• Pre-Planning By Parish 3

• Meetings 3

• Initial Consultation and Process 4

• First Submittal 4

• Contract Document Review 4

• Before work can begin 4

• Hiring and Working with an Architect 6

• Building the Facility 7

Section III. Process Required by Diocesan

Finance Committee

• Purpose 9

• Meetings 9

Section IV. Process Required by Diocesan

Standing Committee

• Encumbrance of Property 10

• Meetings 10

Section V. Sample Forms and Reports

• Project Data Report 11

• Building and Financing Information Sheet 13

• Financial Data Report 14

Section VI. Resources

• Resource Material 17

• Workshops 17

• Fund Raising Sources 18

• Funding Sources 18

INTRODUCTION

This manual has been developed to help facilitate your parish’s building and financing project.

Along with the canons, this information is designed to serve as a guide to the required diocesan

reviews and process. The Commission on Church Architecture and Church Construction and the

diocesan Finance Committee welcome your comments and suggestions.

PROCESS CHECKLIST

When your parish begins consideration of a church construction project, the following checklist will

help you work your way through the task.

_____ Notify Bishop Alexander that you are considering a building project.

_____ Request the Building and Financing Manual for Parishes in the Diocese of Atlanta

from the Finance office at the Episcopal Center.

_____ Complete the Process Required by the Commission on Church Architecture and

Church Construction

_____ Complete the Process Required by the diocesan Finance Committee

_____ Complete the Process Required by the diocesan Standing Committee

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Process required by the

Commission on Church Architecture and Church Construction

PURPOSE

To act as a helpful educational process and obligatory review process for any parish which is

planning a new or renovated building as required by Diocesan Canon 11.

• Section 1. There shall be a Commission on Church Architecture and Church Construction

appointed annually by the Bishop.

• Section 2. No Parish or Aided Parish shall erect a new building, or make structural alterations or

additions to any present building on their Church property without first securing the advice of the

Commission for such proposed construction. A Parish or Aided Parish desiring such construction

shall submit, under rules and regulations promulgated by the Commission and approved by the

Bishop, the following: a) Intention to Initiate; b) Schematic Drawings and Specifications; c)

Design Development Drawings and Specifications; and d) Such other Plans as shall be required

by the Commission.

• Section 3. After each submission, the Commission will, within thirty (30) days, meet with such

Rector, Vicar, Wardens, and Vestry as it deems appropriate. If the Commission does not within

sixty (60) days after such submission offer its advice, then such submissions shall be taken as

approved by the Commission.

• Section 4. Following construction, as-built drawings and specifications shall be furnished to the

Diocese as soon as practicable.

• Section 5. Should any dispute arise as to the application of this Canon, such dispute shall be

referred to the Bishop for resolution.

PRE-PLANNING BY PARISH

• The Project Data Report (see page 11 and 12) is to be prepared as a planning tool and

preliminary information for your architect.

• An Architectural Program, prepared by the parish Building Committee and architect, states the

design problem and budget.

• The Building and Financing Information Sheet (see page 13 and 14) is to be submitted to the

diocesan Finance Committee.

MEETINGS

The Commission on Church Architecture and Church Construction will provide onsite consultation.

The parish should be represented by the rector/vicar, architect (if already engaged), and other persons

most familiar with the project requirements. Parishes wishing onsite consultation should contact the

Canon to the Ordinary at the Episcopal Center to arrange a meeting date. After each review, the

Commission will respond within thirty days with written comments.

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INITIAL CONSULTATION AND PROCESS

• Initial contact is with the Canon to the Ordinary who will refer the congregation to either the

Commission on Architecture and Church Construction, or the Congregation Growth and

Development Commission for consultation

• The parish will have on-site consultation to access project and prepare the congregation for long-

range planning

• The Diocesan resources from Percept (demographic) and other consultations will be introduced,

as well fundraising, and an outline of the building, financing process

• The Stewardship commission may be invited in for consultation

• If liturgical space is planned in the project, consultation and education around current liturgical

practices will be introduced. Construction and design contracts will be discussed

FIRST SUBMITTAL

• Master site plan to include initial construction proposal for site development, existing and new

buildings, roads, parking walks, etc., as well as anticipated future development of the site.

• Topographical survey of area to be developed.

• Schematic floor plans and elevations preferably prepared by an architect at a scale of 1’8”= one

foot showing all new construction along with as-built plans of existing buildings, if applicable.

• Cost estimate prepared by the architect or contractor, if already chosen.

• AIA Document B141, Standard Form of Agreement Between Owner and Architect.

• The parish shall submit the above documents either in person at a meeting of the Commission on

Church Architecture and Church Construction or by the sending the documents to the Episcopal

Center at least one week prior to a scheduled meeting of the Commission.

• After the Commission has reviewed the Schematic Design Phase of the work, the Commission

will respond in writing to the parish within thirty days.

CONTRACT DOCUMENT REVIEW

• After the schematic design phase, the second review will take place when the contract documents

are approximately 95% complete. It is not necessary for the parish representatives to appear in

person for this review.

• Contract documents should include site plan, plans, elevations, details, mechanical, electrical and

structural plans.

• Specifications

• Preliminary cost estimate preferably prepared by the contractor chosen to do the work.

• AIA Document A101, Standard Form of Agreement Between Owner and Contractor.

• The Commission will respond in writing to the parish within thirty days.

BEFORE WORK CAN BEGIN

• Canonical approval for financing comes from the Standing Committee and Bishop who act with

the advice of the Finance Department (see financing review section).

• The congregation should prepare general overview and scope of the project for a ten minute

presentation for the Standing Committee for canonical approval, and also a presentation to the

Executive Board for their information (approval not required).

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HIRING AND WORKING WITH AN ARCHITECT

RESOURCE MATERIAL

• You and Your Architect, published by the American Institute of Architects.

SELECTION PROCEDURES

• Retain the services of a qualified architect early in the project planning process.

• Criteria for selection should include: previous experience in designing church facilities; good

references from other parishes; financially sound professional practice; professional liability and

general comprehensive insurance coverage; enthusiastic about the project; willingness to work

with the Commission on Church Architecture and Church Construction.

• Solicit expressions of interest from three to no more than six firms, asking them to submit their

qualifications by responding to a questionnaire (sample below) and attaching a copy of your

Project Data Report (see page 11 and 12).

Sample Architect Questionnaire

(parish name) is considering construction of a (description of project). Our schedule

calls for completion of planning by (date) and completion of construction by (date). If

you (or your firm) are interested in providing architectural services on this project, please

provide us with the information below by (date). A representative of our Building

Committee will contact you after we have received your response.

a) Your firm: individual? partnership? corporation?

b) Names of principals: affiliations, college, degrees

c) Brief history of firm

d) Name of principal in charge of project, and name of project manager or project

architect.

e) Describe how your firm manages projects, and how you would want to relate to

our committee.

f) Brief list of firm’s experience.

g) Amount of professional liability insurance and name of carrier.

• The Building Committee should select no more than three architects for interviews. Process of

selection can be by interview only or by paid competition.

WORKING WITH THE ARCHITECT

• Clarify at the outset what the process for input and decision-making will be, as regards the

architect, the Building Committee, the rector, and the vestry.

• One person - preferably the Chair of the Building Committee - should be authorized by the

Rector and Vestry to function as official liaison between the parish and the architect.

• Review the project budget with the architect to reach an agreement about construction cost.

• Request recommendations from the architect for revision in the scope of the project, if necessary,

to reach agreement on budget before proceeding to detailed working drawings.

• Refer to Pre-Planning by the Parish (see page 3) for the next steps in working with the architect.

• Arrange for the architect, along with parish representatives, to meet with the Commission on

Church Architecture and Church Construction to review preliminary drawings.

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BUILDING THE FACILITY

SELECTING A CONTRACTOR

• Solicit suggestions from parishioners and the architect.

• The Commission on Church Architecture and Church Construction does not make

recommendations, but does provide a list of parish building projects (see page 20).

• Contact recommended list to solicit interest in the project.

• Request interested contractors to submit material demonstrating their qualifications.

• Review materials carefully and check all references.

• Select no more than four contractors to submit bids or to be interviewed if the project is to be

negotiated.

• Visit at least one comparable project with your architect for each selected contractor.

• Involve your architect fully in the selection process.

• The contractor you select must have experience in church construction, a good reputation among

previous clients, be duly licensed, be in sound financial condition, and not be over-committed to

other projects.

TYPES OF CONTRACTING

• Competitive Bids from qualified, invited general contractors.

- Advantages: potentially the best price; appearance of fairness.

- Disadvantages: somewhat more time consuming; plans must be complete before bids can

confirm budget, thereby increasing changes for budget problems.

• Negotiated Contract with a pre-selected/pre-qualified general contractor.

- Advantages: contractor and architect work closely together during design to control

costs; costs are confirmed sooner, expediting the financing process; contractor is part of

the team.

- Disadvantages: may not achieve the most competitive price.

CONTRACTS

• American Institute of Architects contract form should be used as the basic form.

• Key contract provisions include: payment terms, retainage, liquidated damages (if any),

guarantees and warranties, dispute resolution, progress schedules, completion date.

• Architect drafts agreement for review by parish Building Committee and contractor.

• Contract must specify appropriate bonding and complete general liability, workers compensation

and builder’s risk insurance coverage by the general contractor.

CONSTRUCTION PROCEDURES

• A Building Committee must be appointed with full authorization from the rector/vicar and vestry

to administer the construction project for the parish. The Chair of the Building Committee will act

as the conduit for all communications between the parish, the contractor, and the architect.

• The Commission on Church Architecture and Church Construction recommends the architect be

retained for construction management; the architect becomes the agent who verifies that

construction is being performed in accordance with the construction documents. The architect

should meet at least monthly with the Chair of the Building Committee to review progress, to

discuss change orders, monthly payments, status of retainage, and other issues.

• The Building Committee should report regularly to the vestry and parish on the progress of the

work and coordinate temporary arrangements as may be required to facilitate construction.

• The architect and contractor must document thoroughly all discussions and decisions pertaining

to the project.

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PROJECT COMPLETION

• A final inspection shall be conducted jointly with the Chair of the Building Committee, the

architect, and the contractor.

• The contractor must furnish to the parish: a certificate of occupancy from the local building

authority; warranties; operating instructions (both written and verbal); equipment maintenance

requirements; lien releases; and as-built record documents.

• A warranty inspection should be scheduled at the end of the first twelve months of occupancy.

MAINTAINING THE FACILITY

• Reasonable operating costs, including utilities, insurance, cleaning, and maintenance, should be

carefully calculated and adequately budgeted.

• Consideration should be given to entering into service contracts for the maintenance of major

mechanical equipment. Alternatively, knowledgeable parish personnel should include the

following on a regularly scheduled maintenance checklist:

- check fans, motors, belts, pumps, and filters on mechanical equipment every six months.

- check refrigerant gas, gas burners, thermostat, control calibration, and time clocks every

twelve months.

- check roof exterior, painted surfaces and trim, exterior flashing, and miscellaneous metal

annually.

- maintain a termite bond.

- check plumbing fixtures monthly for proper operation.

• Vestry should consider funding an endowment for maintenance.

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PROCESS REQUIRED BY THE

DIOCESAN FINANCE COMMITTEE

PURPOSE

To review and approve long term indebtedness exceeding the ‘20%’ rule for any parish which is

planning a new or renovated building project as required by Diocesan Canon 23.

• Section 1. No indebtedness shall be incurred by an Aided Parish without prior approval of the

Bishop and the Department of Finance.

• Section 2. Indebtedness may be incurred by a parish without the prior approval of the Bishop and

the Department of Finance, where the debt service (i.e., annual payments of principal and

interest) including debt service for all indebtedness heretofore incurred for current expenses and

still existing, does not exceed 20% of the total annual receipts of such Parish during the

preceding fiscal year. Short term indebtedness in excess of the 20% limit may be incurred when

there is reasonable expectation that it can be repaid in its entirety out of Parish receipts within

the next three years, and budget provision for such repayment has been so made. No further

indebtedness may be incurred without the approval of the Bishop and Department of Finance.

• Section 3. The Bishop and the Department of Finance must be notified before any short term or

long term indebtedness is incurred.

• Section 4. Providing that, in computing receipts under Section 2 hereof, amounts from or for

endowments or from or by bequests, except income therefore not specifically designated, and

receipts for expenditures other than parochial shall not be included.

• Section 5. Provided that under any circumstances under which approval is required, it shall be

granted only when the payment of all indebtedness shall be provided for in a plan of amortization

or other method of payment to be submitted to and approved by the same authority.

MEETINGS

• The diocesan Finance Committee meets on the third Tuesday of each month at 12:30 p.m. at the

Cathedral of Saint Philip (usually Room 302). The parish should be represented by the

rector/vicar, treasurer, chair of the Capital Funds Campaign, and other persons most familiar with

the project finances. Parishes wishing to be placed on the agenda should contact the finance

department at the Episcopal Center at least two weeks in advance of meeting date.

• A copy of the Building and Financing Information Sheet (see page 13 and 14) should be

submitted to the diocesan Finance Committee during the pre-planning phase of the project (see

page 3).

• A copy of the Financial Data Report (see page 15 and 16) should be submitted to the diocesan

Finance Committee at least two weeks prior to the scheduled meeting date.

• After each review, the diocesan Finance Committee will respond within three working days.

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PROCESS REQUIRED BY THE

STANDING COMMITTEE

ENCUMBRANCE OF PROPERTY

• National Canon II.6.2. It shall be unlawful for any Vestry, Trustees, or other body authorized by

laws of any State or Territory to hold property for any Diocese, Parish or Congregation, to

encumber or alienate any dedicated and consecrated Church or Chapel, or any Church or

Chapel which has been used solely for Divine Service, belonging to the Parish or Congregation

which they represent, without the previous consent of the Bishop, acting with the advice and

consent of the Standing Committee of the Diocese.

• National Canon I.7.3. No Vestry, Trustee, or other Body, authorized by Civil or Canon law to

hold, manage, or administer real property for any Parish, Mission, Congregation, or Institution,

shall encumber or alienate the same or any part thereof without the written consent of the Bishop

and Standing Committee of the Diocese of which the Parish, Mission, Congregation, or

Institution is a part, except under such regulations as may be prescribed by Canon of the

Diocese.

MEETINGS

• To seek approval to encumber or alienate church property, contact the President of the Standing

Committee to schedule a meeting with the Committee. Contact the Canon to the Ordinary at the

Episcopal Center for the name and telephone number of the current President.

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PROJECT DATA REPORT

PARISH INFORMATION

Parish ____________________________________________ Report Date_______________________

Address ______________________________________________________________________________

Rector/Vicar _______________________________________ Parish Phone ______________________

Building Committee Chair ___________________________ Phone ___________________________

Attach Parochial Report for the past 5 years, current financial report, and Percept

“First View” document.

PROPERTY INFORMATION

Number of acres owned? ___________________ Number of acres occupied? ____________________

Square footage of existing facilities? __________ Seating capacity of existing church? ___________

Number of Sunday worship services? _________

Please list a description, the year completed, and the approximate construction costs of all buildings and

improvements? _______________________________________________________________________

____________________________________________________________________________________

____________________________________________________________________________________

____________________________________________________________________________________

PROJECT INFORMATION

1. Please provide a brief description of the proposed project: ______________________________

______________________________________________________________________________

_________________________________________________________________________________

_________________________________________________________________________________

_________________________________________________________________________________

_________________________________________________________________________________

_________________________________________________________________________________

_______________________________________________________________

2. Footage Description:

_________________________________________________________________________________

_________________________________________________________________________________

_________________________________________________________________________________

_________________________________________________________________________________

_________________________________________________________________________________

_______________________________________________________________

3. Estimated construction date ______________ Proposed occupancy date __________________

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4. Estimated Project Budget

Construction $_____________

Furnishings and Equipment _____________

Fees and Expenses _____________

Land, if applicable _____________

Other _____________

Total Project Budget $_____________

5. Funding Sources

a) Cash on Hand $_____________

b) Capital Funds Campaign

c) Commercial Lender _____________

d) Diocesan Foundation, Inc. _____________

e) Other (specify __________________) _____________

Total Funding Sources $_____________

6. General Information

a) Architect __________________________________________ Phone _________________

b) General Contractor __________________________________ Phone _________________

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BUILDING AND FINANCING INFORMATION SHEET

(Return completed form to the Diocesan Office)

PARISH INFORMATION

Parish ____________________________________________ Report Date ______________________

Address _____________________________________________________________________________

Rector ____________________________________________ Parish Phone _____________________

Senior Warden _____________________________________ Phone ___________________________

Treasurer _________________________________________ Phone ___________________________

Building Committee Chair ___________________________ Phone ___________________________

PROPERTY INFORMATION

Number of acres owned? ____________________ Number of acres occupied? _____________________

Seating capacity of existing worship space? __________________________________________________

Square footage of existing facilities? ________________________________________________________

Number of Sunday worship services? _______________________________________________________

PROJECT INFORMATION

Please provide a brief description of the proposed project: ________________________________

______________________________________________________________________________

_________________________________________________________________________________

_________________________________________________________________________________

________________________________________________________________________

Estimated construction date ______________ Proposed occupancy date ___________________

PROJECT BUDGET AND FUNDING

Estimated Project Budget

Construction $_____________

Furnishings and Equipment _____________

Fees and Expenses _____________

Land, if applicable _____________

Other _____________

Total Project Budget $_____________

Funding Sources

Cash on Hand $_____________

Capital Funds Campaign _____________

Commercial Lender _____________

Diocesan Foundation, Inc. _____________

Other (specify __________________) _____________

Total Funding Sources $_____________

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HOW MUCH CAN YOUR PARISH AFFORD?

The following formulas are general guidelines to determine budget parameters:

• Capital Funds Campaign

For an existing parish, the goal of a three year pledge drive typically would be 2.5 or 3 times the

annual budget.

$__________________________ x 3 = $ __________________

current year’s operating income campaign goal

This number represents the limit that you could expect to raise in an average three year parish

building pledge drive. For example, if your annual budget was $100,000, a goal of $100,000 x 3, or

$300,000 would be an aggressive pledge drive goal under normal circumstances. For a new parish, it

may be necessary to plan for two or more successive three year campaigns. It is important to

communicate this plan to the membership at the time of the first campaign.

• Debt Service

Under normal circumstances, the cost of financing should not exceed 20% of the parish prior year’s

operating income.

$ _________________________ x 20% = $ ________________

prior year’s operating income annual debt service

This number represents the normal amount of debt service an average parish can handle on an annual

basis. For example, if your annual budget were $100,000, your total annual debt service should not

exceed $100,000 x 20%, or $20,000.

FINANCIAL DATA REPORT

(Return completed form to the Finance Office at the Episcopal Center two weeks prior to scheduled meeting)

Parish _________________________________________ City _______________________________

Prepared By ____________________________________ Report Date _________________________

MEMBERSHIP DEMOGRAPHICS FOR PAST FIVE YEARS

Parochial Report Data Year 1 Year 2 Year 3 Year 4 Current Yr

Baptized Members

Average Sunday Attendance

Total Operating Budget

Pledge Payments

Number of Pledging Units

Average Pledge Amount

Percentage Giving to Outreach

Percentage Giving to Diocese

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PROJECT BUDGET

Construction

Base building cost $______________

Site improvement cost ______________

Escalation to construction start ______________

Total Estimated Construction Cost $_____________

Furnishings and Equipment

Liturgical furnishings $______________

Kitchen and laundry equipment ______________

Furniture ______________

Flooring and lighting ______________

Other furnishings and equipment ______________

Total Estimated Furnishings and Equipment $_____________

Fees and Expenses

Site survey $______________

Subsurface investigation ______________

Materials testing ______________

Legal fees and expenses ______________

Architect/engineering fees and expenses ______________

Loan origination, interest expenses ______________

Miscellaneous expenses ______________

Total Estimated Fees and Expenses $_____________

Other Costs

Contingency ( ____%) $______________

Land cost, if applicable ______________

Other (specify) ______________

Total Other Costs $______________

Total Project Budget $_____________

CAPITAL FUNDS CAMPAIGN

Have you conducted a capital funds campaign for the project? (yes/no) _________________________

If no, is a capital funds campaign contemplated? (yes/no) ___________________________________

If yes, what is/was the start date? __________________ Length of campaign ___________________

How much is pledged to date? _____________________ Collection Assumption %? _____________

What is the pledge period? ___________________________________________________________

How much has been received to date? _______________ Number of pledging units? _____________

How many pledges over $25,000? _______ $50,000 _______ $100,000+ _______

FUNDING SOURCES

Cash on hand from capital funds campaign $______________

Outstanding pledges from capital funds campaign ______________

Commercial Lender ______________

Diocesan Foundation, Inc. ______________

Episcopal Church Building Fund ______________

Other (specify source) ______________

Total Funding Sources $_____________

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REPORT OF PARISH’S ASSETS, LIABILITIES, AND NET ASSETS

For Period Ending ________________________________

Operating

Account(s) Restricted

Funds Trust and

Endowment

Property Funds

ASSETS

Petty Cash

Checking Account(s)

Savings Account(s)

Short Term Investments

Accounts Receivable

Temporary loans to other funds

Deferred Expenses

Long -Term Invest./Mkt. Value

Land

Buildings

Furniture and Equipment

Depreciation (to be subtracted)

Total Assets

LIABILITIES

Accounts Payable

Payroll Taxes Payable

Temporary loan from other fds.

Deferred Income

Short-Term Debt

Long-Term Debt

Total Liabilities

NET ASSETS

IMPORTANT

Please attach a line item spreadsheet reflecting five years of history, current year, and nine years of projected

income and expenses for your parish’s operating fund. Please include income from capital funds campaign,

if applicable, and anticipated debt service. Please include the assumptions used in preparing the

spreadsheet; i.e., number of pledging units each year, average pledge amount each year, percentage used in

projecting increased expenses, projection of additional staff, etc.

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RESOURCES

RESOURCE MATERIAL

• Church Sites and Buildings, a publication of the Episcopal Church Building Fund, helps

congregations plan for building projects that are on budget and designed for their future.

• The Church for Common Prayer, a publication of the Episcopal Church Building Fund, provides

a statement on worship space for the Episcopal Church.

• Churches for Common Prayer is a video tour of two churches, one new and one traditional

building that has been renovated, that exhibit the principles of good liturgical space. This video,

produced by the Episcopal Church Building Fund, is available from the diocesan Resource

Center.

• Builder is a newsletter on church building issues published by the Episcopal Church Building

Fund, and is sent free to all clergy. Laity are invited to add their name to the mailing list by

contacting the Episcopal Church Building Fund at 1-800-334-7626.

• Accessibility Guidelines for Episcopal Churches is available from the Episcopal Church Building

Fund.

WORKSHOPS

• The Episcopal Church Building Fund offers free day-long workshops to introduce congregations

to the building planning process. A minimum of six congregations at the workshop is required.

Topics include: determining the building you need to support the ministries in your future; setting

a realistic budget and financing the building project; making group decisions with minimal

conflict; flexible space; and how to make a building ‘visitor and stranger friendly’. For additional

information, contact the Episcopal Church Building Fund at 1-800-334-7626.

• The Episcopal Church Building Fund co-sponsors with Seabury Institute an annual five day

seminar on congregational development, Start Up! Start Over! Held each spring, the seminar is

designed for those planting new churches and for those wanting new life for existing

congregations where growth is in a plateau or has declined.

FUND RAISING SOURCES

The following companies have expressed an interest in assisting parishes with a capital funds

campaign to raise funds for remodeling, restoration, expansion, debt reduction, and endowment.

• Holliman Associates, Glenn Holliman, president, 4775 Linglestown Road, P. O. Box 126208,

Harrisburg, PA 17112-6208; 800-516-8322, 717-540-5080, email: Holliman@aol.com web

site: www.register.com/holliman

• Sinclair, Townes & Company, Calder Sinclair, president, Robert Townes, senior vice president,

1750 Candler Building, 127 Peachtree St., NE, Atlanta, GA 30303, 404-688-4047

For additional information on conducting a capital funds campaign, contact the diocesan Commission

on Stewardship at 404-601-5320, or 1-800-537-6743.

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FUNDING SOURCES

DIOCESAN FOUNDATION, INC.

• Parish must have complied with Diocesan Canons 11 and 23.

• Capital Funds Campaign must have been conducted prior to making loan application.

• Based upon the availability of funds, the terms are as follows: up to $200,000 at a fixed rate of

interest; funds are unsecured/non-mortgage; monthly repayment term to 15 years, with no

prepayment penalty.

• All new loans will be subject to the current interest rate determined by the Board of Trustees of

the Diocesan Foundation, Inc. Interest rates at the time of this printing are as follows: 1-5 years,

3%; 6-10 years, 4%; and 11-15 years, 5%.

• For additional information or a loan application, contact the Episcopal Center.

EPISCOPAL CHURCH BUILDING FUND

• Loans are available to a diocese for the applying parish for the building, improvement, repair or

purchase of church sites and buildings.

• Based upon the availability of funds, the terms are as follows: up to $200,000 at a fixed rate of

interest; funds are unsecured/non-mortgage requiring diocese to co-sign; monthly repayment term

up to 10 years, with no prepayment penalty.

• The Episcopal Church Building Fund charges a two point origination fee on all loans. This fee

must be paid prior to the disbursement of the loans.

• The current interest rate at the time of this printing was 7.99%.

• Process for obtaining a loan: a) Request a Building Loan Application from the Episcopal Church

Building Fund. b) Submit the completed loan application to the Episcopal Center for final

approval by the bishop and the diocesan finance committee. c) The Finance Department will

forward the approved application to the Episcopal Church Building Fund. d) The Episcopal

Church Building Fund will review it and forward it to a Loan Committee. Approval or denial is

determined within two weeks. e) If approved, the Episcopal Church Building Fund will send you

a letter of commitment. f) Three weeks prior to disbursement, they will send you a Promissory

Note. The note must be signed by the appropriate representatives of the parish and diocese. g)

The funds are forwarded to the Bishop, and the diocesan finance office will forward a check to

the parish.

• For additional information and a loan application, contact the Episcopal Church Building Fund,

815 Second Avenue, New York, New York 10017, or call 1-800-334-7626.

COMMERCIAL FUNDING

It is recommended that several commercial lending sources be investigated in your local community.

February 25, 2009 – WC/NR