Q. I am thinking about buying / selling / building. Who should I contact about my project?
A. Before you engage a consultant, contact Uniting Resources Property Services and discuss the process, basic details of the project including $ value and how you intend to fund the work. If selling property, firstly obtain a valuation from a registered valuer.
Q. Who can approve my application to buy / sell / build?
A. No approval is required for building works under $50,000 providing sales proceeds are not required. If sales proceeds are to be used, then approval is required from Presbytery.
Presbytery approval is required for all projects between $50,000 and $500,000 in value.
Synod approval is required for all projects greater than $500,000.
Q. When is a property project approved?
A. Approval is normally given after the receipt of a satisfactory completion of feasibility and prior to Development Approval (DA Approval) or commencement of a project.
Q. What is meant by Staged Approval?
A. The Synod Property Board or its delegate may choose to issue staged approvals. To avoid confusion with projects that have multiple stages these “staged approvals” are referred to as follows:
Step 1 usually at the end of the feasibility process, and give permission for the applicant to expend funds (at their risk) to secure planning approval
Step 2 usually at the end of the planning approval phase, prior to detailed design and preparation of contract documents
The Step 2 approval is usually a formality and will receive approval providing the project is still viable.
Staged approvals are useful where the approval body feels there is risk that some of the assumptions of the feasibility may change or that external circumstances may change during the project.
Q. What is meant by Conditional Approval?
A. The Synod Property Board or its delegate may choose to issue approvals subject to certain conditions. Typically these conditions can be in three forms:
· Conditions which must be fulfilled prior to commencement of the project. These conditions mean that the applicant does not have final approval before they are fulfilled.
· Conditions which must be fulfilled prior to execution of legal documents.
· Conditions which must be fulfilled by the applicant in delivering the property. The approval body can require that the applicant to demonstrate that these are being met at any time in the delivery of the project.
Q. What is the role of Uniting Resources Property Services?
A. Uniting Resources Property Services is the administrative arm for the Uniting Church Synod NSW and ACT, which has oversight of all property and administration co-ordination within the church. Its roles include those of the Synod Property Board in the Regulations as well as the requirements of the by-laws and Synod policies.
Typically Property Services divide their role into 4 key areas:
- Stewardship and Compliance
- Projects
- Execution of Legal Documents
- Insurance
Q. Can I submit a Development Application (DA) for my project?
A. As the Property Trust is the legal owner of all property, the Property Trust must sign all documents of a legal capacity with the details of the applicant. The details of the applicant must be forwarded to Property Services. Alternatively, Property Services can delegate an authority to the applicant to lodge a DA to a local Council.
Q. Do I need a letter of authority to lodge a DA?
A. Often Councils will require a letter from the owner of the property before it can accept an application for the development of land or property. The Uniting Resources Property Manager Projects can issue a letter on behalf of the Property Trust for approved projects. In exceptional circumstances, the Property Manager Projects may issue a letter to lodge a DA prior to approval of a project at their discretion.
Q. At what stage should I appoint consultants for my project?
A. Before any consultants are appointed, contact Property Services to discuss your project, the process and funding issues. They will provide guidance to achieve the best outcome.
Q. How do I know which consultants to appoint for my project?
A. Property Services can provide guidance as to selecting consultants for feasibility analysis, architects, engineers and other consultants as well as builders.
Q. What is the role and responsibility of the Client Representative for a property project?
A. The Client Representative role includes being the contact person for a project as well as being responsible for the project delivery within time and budget. It will be necessary for other appointees, such as the project manager, to report to him. Refer to the Client Rep. checklist, which outlines the selection process as well as key requirements for the role.
Q. What is the role and responsibility of the Project Manager?
A. The Project Manager is responsible for delivery of the project in terms of time, cost and quality and reports to the Client Representative.
Q. What is a Transaction Manager and is it necessary to appoint one?
A. A Transaction Manager is required for sales and purchasing projects. The role is to provide specialist property advice to the Client Rep and oversee the completion of the property transaction.
Q. Can I bid to buy property at auction?
A. The Property Trust, as the owner of all church property, can authorise you to purchase at auction and will give you a written auction authority for you to bid to a certain value.
You must not bid on behalf of the Uniting Church, without an auction authority.
Q. Can I sell my property by auction?
A. The Synod takes the view that you should sell by Expressions of Interest rather than selling by auction. In this way, you can be protected to some degree as to who buys the property as a sale by auction could result in the possibility of a purchaser of unlike faith or non-acceptable business practice.
Q. I have approval from Uniting Resources Property Services to sell a property but the best offer I have is below the approved amount. What should I do?
A. Church entities who have followed church procedures should find themselves in this situation infrequently. Where a property has been placed on the open market, the Executive Director of Uniting Resources Property Services has the ability to approve a 10% variation between the approved value and the sales price. Variations above 10% may require Board or Property Committee approval. Variations are more likely to be given where a property has been taken to the open market in a professional and transparent manner.
Q. Is the church responsible to pay GST on property transactions and leases?
A. Yes.
Q. Is GST applicable on Property Transactions?
A. Yes.
Q. What is the role of Presbyteries in relation to projects?
A. Presbyteries are required to give endorsement to congregational projects which take place in their Presbyteries. They can provide advice on any aspect of the project but we particularly seek their views on whether they support the proposal from a missional perspective (based on a local and regional level). Presbyteries have no formal role in the approval of projects being initiated by other Boards
Q. What is the role of the Board of Mission, if any?
A. The Board of Mission does not have any formal role in the approving of property projects. Although the Property Committee has requested their involvement in projects involving sales proceeds funds greater than $500k or for projects greater than $1.5m. We would particularly rely on the BOM to assess whether a proposal is consistent with the state wide missional priorities of the Synod and that projects can demonstrably build links with congregations. It is envisaged that this will be included in the review of the by-laws by UR-PS in 2008.
Q. What are the implications of the Sales Proceeds Policy?
A. The Sales Proceeds Policy is a policy in relation to how the proceeds of sale from real estate are utilised. The policy applies to all parts of the Church when properties are sold. The policy seeks to ensure that funds are not used for general operating expenses. Uniting Resources takes the lead role in ensuring this policy operates effectively, although the policy is currently under review.
1. Tithe
The tithe is part of the sales proceeds policy and is administered by Uniting Resources Property Services. The tithe is 10% of the net proceeds of sales. The tithe is collected by the Synod Mission Resource Fund (SMRF) who then distributes the funds to part of the Church in need.
2. Tithe Exemption
Exemptions to the tithe are given in accordance with the provisions of the Regulations and the Sales Proceeds Policy. SMRF administers exemptions to the tithe and applications should be made directly to SMRF. Tithe exemptions will not be included in feasibilities for development projects unless they have been approved by SMRF. For more information contact the SMRF administrator direct.
Q. Where can I obtain a loan for my project?
A. Where a loan is required for a project, approval needs to be secured through Uniting Financial Services (UFS) and the approval can be conditional. Applicants will need to refer to UFS to meet their lending criteria.
Q. Are there any loan options for funding projects?
A. 1. Loans
Property projects sometimes require additional funding, either during the project or on completion. Uniting Financial Services can offer applicants loans to fund their projects. For more information contact UFS customer service.
2. Low Interest Loans
The Uniting Church has some avenues for low interest loans, although these are typically for smaller loans:
- Schofield Loans – for more information contact UR-PS
- Woolnough Loan – for more information contact the Board of Mission
3. UCA Grants
The Synod Mission Resource Fund offers grants to assist applicants with their property projects. These grants can be for feasibilities or to assist in funding capital works. Alternatively they can be given as low interest or interest free loans. For more information contact the Synod Mission Resource Fund Administrator in the Board of Mission.
4. Government Capital Grants
From time to time applicants are also able to secure capital funding from the government for projects which meet a community need. Often the application process for these grants is handled jointly with the application process for UCA project approval. Often these grants come with conditions which can form an ongoing liability for the Uniting Church.
Q. In what ways is the Uniting Church Trust Association (UCTA) different from the Property Trust?
A. The Uniting Church Trust Association is a separately incorporated body and is sometimes confused with the Uniting Church Property Trust. The UCTA trades as Uniting Financial Services (UFS) and provides treasury services for the church. Its assets are not held by the Property Trust but in the name of the UCTA.
Q. What is the importance of the Certificate of Correctness?
A. The Certificate of Correctness is a legally important document, provided by the applicant, as it gives authenticity to the applicant’s approval and verifies contractual documentation for the project. The Certificate of Correctness enables the Property Trust to legally approve the project.
Q. Which documents must be sent to Synod for signing by the Property Trust?
A. The following documents must be executed by the Property Trust:
· All real property documents
· All documents which are required to be executed under the Common Seal
· Contractual documents with a value over $100,000 (GST incl).
Q. Who administers the execution of legal documents?
A. Uniting Resources administers The Uniting Church in Australia Property Trust (NSW) and arranges for the co-ordination of legal documents for approved projects and for the execution of those documents.
Q. What is the purpose of the Property Trust?
A. The Property Trust is a panel of appointed members who execute legal documents.
Q. What responsibilities do the stewards of the property have?
A. Stewardship of property is the term given for those entities within the Church with the principal responsibility for use or control of the property held by the Uniting Church Property Trust.
Occasionally people will use the term beneficial stewardship – in actual fact the Uniting Church as a whole is the beneficial steward of the land and occupiers of the land (or steward) with benefits and responsibilities which come with use of the land.
In the Uniting Church the steward has the following benefits:
- They may use the land and or buildings without charge
- They may derive income from the land and buildings
- They have control of the equity in these properties
Stewards also have some responsibilities:
- They must have systems in place which maintain the land and or buildings in safe condition
- They must ensure that the property is being well and efficiently used to support their ministry objectives but also those of the Synod.
- They must meet the reporting and approval requirements of the Uniting Church before they make decisions relating to property.
Most times there is one steward of a property. Although it is possible for congregations to share a property under a shared use agreement which means that stewardship benefits and responsibilities are shared.
It is possible for a steward to rent space to another part of the Church. This is not encouraged between congregations. In these circumstances the steward cannot absolve itself of its responsibilities even if they try to do so under the terms of any internal lease documents.
For a more complete description of the responsibilities or Councils of the Church, refer to the Regulations and by laws.
Q. How can I obtain a Standard Lease Document?
A. Standard lease documents have been prepared and should be used where the Uniting Church is acting in the capacity of landlord or lessor. Normally when acting as a tenant or lessee the owner will request that their standard lease or an industry standard lease is used.
1. Retail lease
Retail leases are used for certain types of uses and have different legal requirements to normal offices leases. A copy of the Synod standard retail lease can be found here [Link to document].
2. Additions to standard residential lease
For residential leases, it is most appropriate to use an industry standard lease. The Synod has some additional clauses which have been developed and should be annexed to the standard lease and signed by both parties. A copy of the extra conditions can be found here [Link to document].
3. Commercial lease
The standard Synod commercial lease can be found here [Link to document].
Q. What is the difference between a lease and a licence?
A. A licence is for non-exclusive use of all or part of the land or buildings. It can be granted for a single event or regular periodic use.
A lease is an exclusive use of part or all of the property by the lease.
Q. What is gross rent?
A. Gross rent is the term used in lease agreements and includes the rental plus the tenants’ contribution to building outgoings. It is effectively the total costs paid by the tenant on an agreed basis and is generally paid monthly.
Q. What is a development project?
A. A development project is a project which has one or more transactions that are dependent on each for the project to be successful. For example it may be that a congregation is selling 2 properties in order to extend another property. It is necessary for all transactions to be successfully completed, before the project is deemed to be a success. By comparison another congregation builds an extension which is fully funded with the intention of leasing some space out to a mission group. This project could be assessed as two separate proposals as the building project is not dependent on the lease being executed.
Q. What is the process for a development project?
A. Needs an answer
Q. Do I need a Sinking Fund for Asset Replacement?
A. Stewards of property do not pay rental for the use of property. It is strongly recommended that stewards practice long term sustainable management of any buildings under their control by setting aside a sinking fund for major capital repairs in the future. These costs are different to repairs and maintenance.
It is mandatory that all significant building projects being undertaken can demonstrate that they can manage the building sustainability into the future.
Q. What do I do if I have a property emergency?
A. If you have a property emergency, the local steward should take necessary steps to treat any injured persons and minimize further risk of damage to persons or property by reducing access to the property. Local stewards should then seek expert assistance to resolve the problem. Uniting Resources Property Services can assist in identifying suitable contractors or consultants where necessary. The steward should also notify the Insurance Manager as soon as possible.
Q. In the event of a building being damaged, will the insurance company allow me to alter or improve the building to be something different from the original?
A. The insurance company will not pay additional (or betterment) costs.
Q. A Council or government authority wants to place a heritage listing in our property. What should I do?
A. We recommend that you appoint a heritage consultant to prepare a submission in relation to the property and submit to the appropriate government authority. A copy should also be sent to Uniting Resources Property Services’ Compliance Manager so that it can be raised through the Religious Property Advisory Board of the Heritage Council. Uniting Resources can provide names of reputable heritage consultants who can assist if necessary.
Q. A neighbour is complaining about our activities. What should I do?
A. We recommend that stewards try to deal with the issue as quickly as possible by clarifying the nature of the problem and objectively assessing whether the Church is either acting outside of the law (or the basis of its approval from Council) or outside the spirit of a neighbourly dealings. If the matter does not seem like it can be resolved ask for the issue to be put in writing outlining the nature of the problem and how it affects the other party. The decision making body can then respond with an appropriate compromise.
In some instances our best compromise will not be sufficient. In these situations, complainants may appeal to the Moderator or the media or Council. At all times it is important that we can demonstrate that we have tried to be flexible and have treated people with respect.
The Uniting Resources Compliance Manager can assist stewards to assess if the complaint is reasonable, as well as assist with consultants who can develop compromise solutions or attend meetings in a mediation role.
Q. A neighbour is proposing to complete a building project. What should I do?
A. Most building projects require approval from Council and your neighbour will need to make an application to Council for their project. Council in turn will notify all neighbours of the proposal and invite comments. We recommend that stewards of property appoint a consulting town planner to prepare a submission on their behalf and then hold a discussion directly with the applicant with the intention of resolving any issues prior to lodgement with Council. If any issues cannot be directly resolved the submission should be lodged with Council and both parties can accept the decision of the consent authority.
