Property Services Team
The Property Services Team will support you as you navigate any type of property transaction. Learn more about where to start when refinancing, selling, leasing and more.
The Property Services Team is here to support your church
Local Foursquare churches are served by the Property Services Team, whether buying, leasing or something in between. When our local leaders find themselves in need of property changes, find out what you can expect and who to contact.
Charter or Covenant
Looking to buy, sell, rent, lease or upgrade a ministry facility? Foursquare ministers have two pathways to own or operate ministry facilities – the Charter Model and the Covenant Model.
Charter Model Property Benefits
- Property related consultation by Property Services Team
- Property is in the name of the International Church of the Foursquare Gospel (ICFG)—a larger corporation
- Property decisions/expenditures are authorized by ICFG
- Lenders realize the financial strength of the larger corporation
Covenant Model Property Benefits
- Property related consultation by Property Services Team
- Property is in the name of the local congregation
- Property decisions/expenditures are the responsibility of the local congregation
- Allows for non-traditional ministry models/methods that ICFG isn’t willing to participate in due to inherent risks and ascending liabilities
Ready to learn more about the Covenant + Charter church models?
Contact your district administrator to talk through which option works best for your church or ministry.
Types of property transactions
Whether your church or ministry is leasing or purchasing a property, or refinancing or renovating an existing property, the Property Services Team is here to support you. All property transactions fall within the directives of Foursquare Bylaw XVII
Many Foursquare churches rent facilities either through a lease or a license. A lease is a rental agreement that provides exclusive use of an entire property or unit. A license is a rental agreement that that provides non-exclusive use to a property or unit. A license can provide partial use all the time or, more commonly, full use only at set times or days. The Property Services Team assists hundreds of Foursquare churches navigating the leasing process each year. That volume of experience and level of expertise continues to be a great benefit and resource to churches in an ever-changing rental environment.
Below are the details about authorization and signatures, requirements, steps in the process, and typical timeframes related to leasing transactions. Please contact our team early so that we can help you navigate the process and answer any questions.
Authorization + signatures
According to our bylaws, all loan offers, agreements and closing documents can only be executed by authorized signers who have prior ICFG board approval. Therefore, no leases shall be signed by the local church or its leadership. Said leases, licenses and/or agreements are only permitted in the name of the International Church of the Foursquare Gospel, and can include the legal name and/or slogan name of the church. However, no personal guarantees are permitted.
List of requirements
- The Foursquare Hub indicates the church is current and up to date on monthly reporting
- 2/3 membership vote certified by the church council (except those which are month-to-month or less)
- Copy of lease, license, or agreement
- Copy of master lease if entering a sub-lease arrangement
- No personal guarantees permitted
- No automatic renewals permitted
- Zoning assurance from local city/county agencies
- Proof of insurance
- Fixed operational expenses and/or cash reserves within policy guidelines
List of Steps
- Church submits lease, license, or agreement for preview by the Property Services Team
- Property Services Team consults with district
- Completion of PT form attesting to congregational and church council approval
- Church submits additional documents as needed
- ICFG board approval
Estimated timeframe for leasing a property
Typically the process to lease a property, from beginning to end, takes 21-30 days.
Documents
Foursquare churches commonly acquire properties during their life cycle. This can be by purchase, donation or gift. Here we will address a purchase. If you have another situation, please contact the Property Services Team as early as possible.
The Property Services Team has assisted hundreds of Foursquare churches navigating the purchase process and continues to assist dozens each year. Most pastors and church leaders will typically only do this once or twice in a career/lifetime. Our team enjoys leveraging their cumulative experience and level of expertise to guide pastors and churches through the complexities.
Below are the details about authorization and signatures, requirements, steps in the process, and typical timeframes related to property transactions. Please contact our team early so that we can help you navigate the process and answer any questions.
Authorization + signatures
According to our bylaws, all loan offers, agreements and closing documents can only be executed by authorized signers who have prior ICFG board approval. Therefore, no purchase agreements or offers shall be signed by the local church or its leadership. And said offers, agreements and closing documents are only permitted in the name of the International Church of the Foursquare Gospel. Therefore, the purchaser must be “International Church of the Foursquare Gospel.”
List of requirements to acquire a property
- The Foursquare Hub indicates the church is current and up to date on monthly reporting, tithing, missions giving, insurance, and any mortgage
- 2/3 membership vote certified by the church council
- 20 percent cash down payment
- Lending approval sufficient to cover the remaining amount needed
- Purchase Sale Agreement (PSA)
- Professional property inspection – the inspector will also complete our Inspection Questionnaire
- Professional property environmental report – $150 ordered by Property Services Team
- PT-21 Environmental Disclosure
- Zoning assurance from local city/county agencies
- Adequate property insurance
- Appraisal or brokers opinion of value (BOV)
- No cemeteries
- Fixed operational expenses = 80% or less than unrestricted income
- Title report and warranty deed in the name of ICFG
List of steps to acquire a property
- Church contacts Foursquare Financial Solutions (FFS) or commercial lender to determine borrowing capacity
- Church submits Purchase Sale Agreement (PSA) for review
- Church submits an appraisal or broker’s opinion of value (BOV)
- Property Services Team consults with district
- Completion of PT form attesting to congregational and church council approval
- Property Services Team requests EDR
- Completion of PT-21 Environmental Disclosure by seller
- Professional inspection of property
- Church submits additional documents as needed
- ICFG board approval of purchase/loan request
- Actual closing
Estimated timeframe
It typically takes between 90 days and 12 months, depending on the complexity of the property acquisition.
Documents
New building construction is still a routine activity in Foursquare churches, but, more commonly, our churches are renovating properties for better use. The difference is that new construction is any increase in square footage (footprint of the building is increased or altered), and remodeling is a build-out or repair that affects more than 25 percent of the interior, any load-bearing walls, or material change to the structure.
The Property Services Team has assisted hundreds of Foursquare churches navigating the construction/remodel process and continues to assist dozens more each year. Our team can leverage that volume of experience and level of expertise to guide pastors and churches through the creative aspects and unique complexities of each project.
Below are the details about authorization and signatures, requirements, steps in the process, and typical timeframes related to property transactions. Please contact our team early so that we can help you navigate the process and answer any questions.
Authorization + signatures
According to our bylaws, all loan offers, agreements and closing documents can only be executed by authorized signers who have prior ICFG board approval. Therefore, no construction agreements shall be signed by the local church or its leadership. Construction agreements are only permitted in the name of the International Church of the Foursquare Gospel and can include the legal name and/or slogan name of the church.
List of renovation or construction requirements
- The Foursquare Hub indicates the church is current and up-to-date on monthly reporting, tithing, missions giving, insurance and any mortgage
- Congregation confirmation: (1) 2/3 membership vote certified by the church council if the refinance will include additional debt or longer amortization; OR (2) only church council approval if no new debt is added, and the amortization remains the same
- Plans + specifications approved by city/county and fire
- Hard bids to support the estimates
- Complete budget of construction/project costs which includes: (1) all hard and soft costs (planning, permits, architectural design, on and offsite work, landscaping, and construction costs); (2) Furniture, Fixtures, + Equipment (FF+E); (3) course of construction insurance; (4) possible environmental tests, including for remodels of buildings built before 1981; and (5) 25 percent contingency must be added onto the contractor’s estimate of costs
- Cash on hand = 20% or greater of the total project costs
- Lending approval sufficient to cover the remaining amount needed
- Demonstrate ability to cash flow any new fixed expenses due to project
- Permission and/or assurance from local city/county agencies
- Adequate course of construction insurance
- Fixed operational expenses = 80% or less than unrestricted income
List of steps
- Church contact FFS or commercial lender to determine borrowing capacity
- Church submits construction agreements for preview to the Property Services Team
- Church submits city/county/fire approved plans, specs, complete budget and hard bids
- Property Services Team consult with district
- Completion of PT form attesting to congregational and church council approval
- Construction draws are funded by PT-22 forms submitted to and approved by the Property Services Team
- ICFG Board approval of construction or remodel request
- Final loan closing
Estimated timeframe
Typically, it takes 90-120 days to begin the renovation or construction. It could take longer depending on the local agency requirements and/or the complexity of the project.
Documents
Every month, there are Foursquare churches that are refinancing their mortgages. The Property Services Team and Foursquare Financial Solutions (FFS) collaborate to assist each church through the process, answer all questions and counsel them regarding all options.
Below are the details about authorization and signatures, requirements, steps in the process, and typical timeframes related to property transactions. Please contact our team early so that we can assist.
Authorization and signatures
According to our bylaws, all offers, agreements and closing documents can only be executed by authorized signers who have prior ICFG board approval. Said offers, agreements and closing documents are only permitted in the name of the International Church of the Foursquare Gospel (ICFG).
List of requirements
- The Foursquare Hub indicates the church is current and up-to-date on monthly reporting, tithing, missions giving, insurance and any mortgage
- 2/3 membership vote certified by the church council (except those which are month-to-month or less)
- Loan conforms to Foursquare policies: (1) only real estate is secured; (2) no unsecured loans; (3) loan in the name of International Church of the Foursquare Gospel; (4) repayment is principal and interest; (5) no prepayment penalties; (6) no personal guarantees; (7) amortization does not exceed 25 years; (8) loan does not exceed 80 percent loan to value (LTV); and (9) loan underwritten on local church creditworthiness
- Adequate property insurance
- Fixed operational expenses and/or cash reserves within policy guidelines
- Use of funds conforms to policy guidelines—purchase of real property, deferred maintenance, property improvements or trade fixtures—not salaries or personal equipment
List of steps
- Church contacts current and/or potential lender(s) to discuss refinance terms
- Term sheet or lender commitment letter including actual terms is sent to the Property Services Team for review
- Property Services Team Coordinator creates a property request (PT form) for pastor and church council to sign
- ICFG board approval of refinance request
- Loan documents signed by two ICFG corporate officers and returned back to lender
Estimated timeframe
Typically, it takes 3-6 months to refinance a property.
Documents
It is not unusual for a Foursquare church to sell a property. However, selling a property may be the most uncommon property transaction for any pastor. Selling a church is very different than selling one’s home and even has some unique aspects not found in other commercial sales. The Property Services Team is very prepared to assist Foursquare churches working through the listing and sale.
Below are details about authorization and signatures, requirements, steps in the process, and typical timeframes related to property transactions. Please contact our team early so that we can help you navigate the process and answer any questions.
Authorization + signatures
According to our bylaws, all offers, agreements, and closing documents can only be executed by authorized signers who have prior ICFG board approval. Therefore, no sales agreements or offers shall be signed by the local church or its leadership. Said offers, agreements and closing documents are only permitted in the name of the International Church of the Foursquare Gospel. Therefore, the seller must be “International Church of the Foursquare Gospel.”
List of requirements
- The Foursquare Hub indicates the church is current and up-to-date on monthly reporting, tithing, missions giving, insurance and any mortgage
- 2/3 membership vote certified by the church council.
- Purchase Sale Agreement (PSA)
- Appraisal or Broker’s Opinion of Value (BOV)
- Explanation for the use of sale proceeds
List of steps
- Church acquires an appraisal or Broker’s Opinion of Value (BOV)
- Church submits Purchase Sale Agreement (PSA) for review
- Church submits the appraisal or broker’s opinion of value (BOV)
- Property Services Team consults with district
- Completion of PT form attesting to Congregational and Church Council approval
- Church submits additional documents as needed
- ICFG board approval of sale request
- Actual closing
Estimated timeframe
Typically, it is a 45-day process to sell a property from the Properties Services Team’s side of the transaction. This does not include the time it might take to actually sell the property.
Documents
Cell tower leases, easements and demolition are very unique transactions that will require assistance to navigate.
- Cell tower leases need special guidance due to the length of commitments and to advise our churches of what is common and acceptable. Cell tower leases often begin as a very one-sided agreement not in the best interest of the church and can be further negotiated.
- Easements vary in uniqueness and complexity dependent on the type and use.
- Demolition is more complex than the simple removal of an unused structure. The removal of an asset will impact the accuracy of the Foursquare financial statements. And there may be federal laws and/or environmental aspects to address prior to demolition.
The Property Services Team is very prepared to assist with unique complexities and negotiations required for each.
Below are details about authorization and signatures, requirements, steps in the process, and typical timeframes related to property transactions. Please contact our team early so that we can help you navigate the process and answer any questions.
Authorization + signatures
According to our bylaws, all offers, agreements and closing documents can only be executed by authorized signers who have prior ICFG board approval. Therefore, no contracts of agreements shall be signed by the local church or its leadership. Said offers, agreements and closing documents are only permitted in the name of the International Church of the Foursquare Gospel.
List of requirements
- The Foursquare Hub indicates the church is current and up-to-date on monthly reporting, tithing, missions giving, insurance and any mortgage
- 2/3 membership vote certified by the church council
- Copy of all offers and/or proposed agreements
- Professional property inspection and/or survey depending upon the transaction type
- Zoning assurance from local city/county agencies
- Adequate property insurance
- Explanation for the use of any proceeds
List of steps
The actual steps vary by transaction type. Please contact the Property Services Team at 213.989.4410 for specific information as it pertains to your scenario. Overall, the church can anticipate the following:
- Church submits the proposed lease, license, easement or agreement for preview by the Property Services Team
- Property Services Team consult with district
- Completion of PT form attesting to congregational and church council approval
- Church submits additional documents as needed
- ICFG board approval
Estimated timeframe
The actual timeframe varies by transaction type. Please contact the Property Services Team at 213.989.4410 for an estimate.
Documents
Contact Us
The Property Services Team is here to support you as you navigate any property transactions. Call us at 213.989.4410 or email property@foursquare.org.