4. Property ​

The role of the Archdiocesan Building and Property Commission ​

The Archbishop is responsible for the careful supervision of the administration of all goods that belong to the parishes of the Archdiocese.

The Archdiocesan Building and Property Commission (ABPC), formerly known as the PBFC, is a consultative body appointed by the Archbishop to assist and advise him, the Executive Director Stewardship’s office and parishes in the best use of the land and buildings assets. The ABPC does this by attending to the implementation of policies approved by the Archbishop and assists parishes in evaluating the benefits and options associated with the buying, developing and or selling of land assets.

The ABPC has the following responsibilities in pursuit of its purposes:

For the avoidance of doubt, for the purposes of clause (a)(i), any applications regarding works that concern building, restoration or renovation of churches or school chapels, or that otherwise involve the area of worship (nave and/or sanctuary), must not be considered by the ABPC unless they are accompanied by a recommendation from a competent body as authorised by the Archbishop, that supports the grant by the Archbishop of a liturgical approval for such works.

Master-planning: Take the Way of the Gospel processes for parishes to follow in collaboration consultations ​

As parishes begin to explore a path of missionary renewal in light of Take the Way of the Gospel, the current and future composition of each Mission comprised of multiple parishes will vary according to local needs and realities. The current and future use of parish properties will form part of the local discernment. Further property-related guidance will be developed for Mission parishes over time. Mission parishes are encouraged to consider how best their properties may be used as part of developing an overall master plan for all available properties within the local Mission area.

The purchase or sale of land ​

Parish land assets are accumulated through historical acquisitions, bequests and as a result of parish investment initiatives. These assets offer the parish a means for resourcing present or future apostolate initiatives. Parishes should seek to preserve this patrimony and maintain its value in meeting current and future needs.

A parish has a responsibility to exercise good stewardship in the use of its land assets. It also needs to consider requirements for new sites or in constructing additions that will assist the future work of the parish.

Consultation ​

The parish priest is to consult with PFC members and the regional bishop before submitting proposals for buying, developing or selling land to the ABFC in accordance with guidelines issued. Refer to Alienation or purchase of property guidelines. The parish priest must relay the PFC’s and the regional bishop’s opinions with the proposal to the Archbishop.

Parish analysis of the proposal ​

The parish is required to assess their needs for the future in regards to the proposed use of any new property or how alienating the property fits into future plans. The assessment should demonstrate how the transaction assists the parish in providing a sustainable resources base for service and mission, and how the transaction aligns with the parish's master plan for the particular site and overall land holdings.

Diocesan requirements relating to any application to purchase property include a detailed financial analysis and business plan to verify the ability of the parish to complete the transaction for the purchase of the property. The financial considerations are subject to review by the Executive Director Stewardship’s office through the Chief Financial Officer.

Archbishop’s approval ​

Prior to engaging in any real-estate transaction, the parish priest is required to obtain the written approval of the Archbishop. All requests for approval shall be in writing and sent to the Archbishop via the Executive Director Stewardship for review and submission to the relevant consultative bodies.

The parish priest representing the parish (c. 532) must be the one to initiate the alienation of the property. Even if the parish priest and the Archbishop are working collaboratively to sell the property, the parish priest and not the Archbishop initiates the sale. Except in the case of negligence by a parish priest, where the Archbishop may out of necessity be required to correct an error or insist upon a different method of administration, the Archbishop cannot alienate a parochial asset against the will of the parish priest.

Time should be allowed for review and consultation by the Archbishop and his consultative bodies, namely the Archdiocesan Building and Property Commission, College of Consultors, Diocesan Finance Council and possibly Council of Priests.

Refer to Purchase of property—prior approval request protocol.

Property transaction execution ​

Only the Trustees of the Roman Catholic Trusts Corporation for the Diocese of Melbourne (RCTC) have the authority to execute documentation pertaining to parish-owned property purchases and sales. The execution of the documents relating to property is facilitated through the Director of Property and Infrastructure.

Alienation of parish goods valued at over the ACBC-prescribed minimum value ​

The permission of the Archbishop is required before parish stable patrimony (property and fixed assets) whose value (not necessarily the sale price) exceeds the minimum amount listed in Amounts for alienation of temporal goods may be validly alienated—that is, transferred to another’s ownership. The opinion of the PFC must be relayed to the Archbishop when seeking his permission to alienate the goods.

Refer to the Application to the alienation of Church property guidelines and application form.

Closure of a church ​

Where the alienation of property involves the closure of a building that was previously used for Catholic worship, the Archdiocese has published guidelines for additional steps that are required for its conversion to a secular and appropriate use. These include formal consultation with parishioners, especially those affected by the closure. Further consultation should occur with parish bodies (pastoral council and PFC) and any interested parties who have a legitimate interest in the site (such as a land or building donor). The regional bishop or episcopal vicar is then to be consulted for a broader perspective in the region affected by the closure.

Please refer to the Application to the alienation of Church property guidelines and application form.

Capital works and building expenditure over $100,000 ​

The ABPC supervises the construction, alteration, addition or renovation of buildings. This includes church sanctuaries and other liturgical requirements. Capital works and major refurbishment—as defined as any construction, repair, renovation, landscaping or engineering project that is over $100,000 (excluding GST)—require the prior approval and permission of the Archbishop as an act of extraordinary administration.

Please refer to the detailed protocol in the Application for Project Appraisal—ABPC for Parish Major and Minor Works.

Diocesan Pastoral and Development Commission financial assistance application ​

The Diocesan Pastoral and Development Commission (DPDC) considers applications for funding for renovations to presbyteries to make them habitable for priests in residence.

Funding of up to $30,000 is available for this purpose.

The Commissioners have adopted a process whereby one round of applications is considered annually so that the budget can be allocated fairly between all applicants.

Please refer to the DPDC Application for Funding—Presbytery Renovations for further information.

Capital works under $100,000 ​

Parish priests are authorised to proceed under their own authority in obtaining and signing construction contracts that are under $100,000 (excluding GST) for parishes. However, it is recommended that the parish priest consults with and obtains the professional assistance of the Archdiocesan Property and Infrastructure Office, even for small projects.

Projects with a projected cost under $100,000 are generally handled at the local level, with the following exceptions:

• Work involving the area of worship (nave and/or sanctuary) requires liturgical approvals from the Archbishop.
• Any project under parish administration requires approval from the Archbishop.
• Any project requiring financing or financial assistance requires approval from the Archbishop.

Projects should not be subdivided into separate work components under $100,000 to avoid applications for permission.

The RCTC minor works contract for small construction projects should be used for all minor-works projects.

Any project or improvement involving asbestos or mould remediation, lead-based paint or structural change to existing buildings, even if it will cost less than $100,000, must be reviewed and approved by the Archdiocese's Property and Infrastructure Office before proceeding with the work.

Maintenance—budgeting and long-term planning ​

In accordance with the Parish Finance Committee Statutes, each parish should conduct an annual review of all parish properties, identifying immediate and long-term maintenance needs, which should be incorporated into the annual budget.

This will ensure that the assets of the parish are maintained in good working order. It will also assist with finance planning, reducing the risk of parishes incurring unbudgeted capital and or maintenance expenditure.

The Archdiocese’s Property and Infrastructure Office has issued guidelines for Maintenance of Church property (document link to come) as well as a Capital and maintenance 5-year plan template for reference.

Parishes are encouraged to document an asset-inspection program that covers the following items:

• the whole or the parish plant, including but not limited to the exterior and interior of all buildings, landscaping, playgrounds and car parks
• furnishings, including public space, office furniture, chairs, tables and electrical equipment
• security and safety systems, including perimeter fencing and gates, intrusion-detection and alarm systems, video-surveillance systems, fire extinguishers, sprinklers, switchboards and fire-alarm systems
• building systems and utilities, including drainage, roofing systems, plumbing, electrical systems, data-communication systems, heating, ventilation and air conditioning.

Leasing parish property ​

The leasing of parish property, including real property, requires that a contract be entered into by the RCTC and another party. This contract grants exclusive possession of the parish property, either moveable or immovable, or land for a specified period of time in exchange for some consideration or payment.

Good stewardship and administration principles are the basis for making sure that properly documented agreements are put in place for non-parish activities. This will contribute to improving communication and relationships between the parish and tenants or licensees, and will also reduce the risk of problems arising (which would be a significant drain on parish resources and also be of significant reputational risk to the parish).

The Archdiocese has published a Lease, license and hiring of parish property policy to assist parish priests and PFC advisers to understand the processes that govern the leasing and licensing of parish properties.

Leasing agreement execution ​

Subject to lease agreements being confirmed as ready for execution after the appropriate checks have been completed, the Executive Director Stewardship, through the Property and Infrastructure Office, submits all parish leasing agreements to the Trustees of the RCTC for execution. Upon execution, the agreements will be returned to the parish or its legal representative.

Lease agreements requiring the Archbishop's approval ​

In November 1984, the Australian Catholic Bishops Conference (ACBC) determined which leasing arrangements constitute extraordinary administration across the Catholic Church for diocesan and parish assets and therefore require special permissions. The Lease, license and hiring of parish property policy provides the full details, but in summary, the ACBC and the Archbishop require the following consultations and consents:

Leasing and renting—rates and taxes implications of change of use ​

Religious organisations as charitable entities are afforded relief from certain state and local government taxes and levies. Parish properties used for pastoral purposes, such as churches, presbyteries and parish halls, are exempt from land tax and municipal rates (although some municipal charges still apply for rubbish collection and fire- and emergency-services levies).

Where a formerly exempt pastoral property is repurposed to generate an income through leasing or renting, the parish is obliged to advise the relevant statutory body of the change in use. Rates and taxes will then be applied in accordance with standard landholder assessments.

Properties that are used partially for income-producing purposes may incur a pro-rata land tax assessment. (For example, multiple residential units on a single site, being used for both pastoral and commercial purposes, will incur a pro-rata land tax assessment.)

Vacant land not being used for a current pastoral purpose may also incur land tax and municipal rates.

For further advice on the taxable status of land and on reporting obligations, please contact the Property and Infrastructure Office. The Archdiocese has published policy guidance in its Guidelines for property rates and taxes.

Renting or hiring parish property ​

A hire agreement differs from lease and licence agreements in that it covers the use of the property on a one-off basis, such as when a community group hires a parish hall.

Whenever parish property is used or hired by a third party, a formal agreement setting out the terms and conditions of the hire or use of the property or facilities must be completed and signed by the third party and the parish priest.

The Facilities hire agreement is to be used for all parish facility hire arrangements and provides information and protections for both parties.

The accompanying Parish facilities hire guidelines are to be complied with in relation to each and every user of parish property, whether the use is by a one-off user or a long-term user under agreed terms. The guidelines are designed to assist parish priests and parish workers with the administrative requirements for hiring parish facilities and deal with matters such as fees, bonds, insurance cover, permissible uses, work health and safety compliance, and conditions for use of the facility.

When a parish is a tenant ​

There are occasions when a parish may require the short-term use of a building and/or land that is owned by another organisation—for instance, when the type of facility required is unavailable within the broader Church asset pool, or vacant parish buildings or land are not deemed suitable for the intended purpose.

Prior to entering into any agreement with another organisation, the parish priest must consult with the PFC and maintain a record of their awareness of the expenditure to be incurred due to the lease proposal.

While the permission of the Archbishop is not required, the Lease application form (lessee) should be completed and forwarded to the Executive Director Stewardship through the Property and Infrastructure Office.

No formal lease process should commence until the Property and Infrastructure Office has reviewed the proposal. Execution of lease agreements for parish tenancies is completed by the RCTC.

The Archdiocese has published policy guidance in Application and process for when a parish is a tenant or licensee to assist parish priests and PFC advisers to understand the processes that govern the leasing and licensing of parish property.

Naming parish buildings ​

The Archdiocese has published a policy on naming parish buildings. Please refer to the Naming Policy for guidance on the process to be followed.

Deceased’s ashes and columbariums ​

In 1963, the Church lifted the prohibition on Catholics being cremated. Since then, the choice of cremation has notably increased, and parishes have responded by providing places, often near the parish church, where the ashes of the deceased can be interred. This follows the tradition of people being interred near the parish church, where their remains can be honoured within the faith community in which the deceased lived and worshipped.

The Church says that ‘the ashes of the faithful must be laid to rest in a sacred place, that is, in a cemetery or, in certain cases, in a church or an area, which has been set aside for this purpose, and so dedicated by the competent ecclesial authority’ (Ad resurgendum cum Christo, §1016, #5).

The word columbarium is derived from the Latin word for ‘dove’ (columba), the bird of peace and a symbol of the Holy Spirit.

It is a structure composed of many niches to permit the interment of the ashes of those who have been cremated.

Sample General conditions for a memorial garden and columbarium have been made available by the Archdiocese, including an agreement for internment right template.

The Archdiocese has also published policy guidance in Guidelines relating to the conservation of ashes in the case of cremation, to assist parish priests and PFC advisers to:

• understand the procedures to follow when establishing and maintaining columbariums
• respond to requests from parishioners to lay to rest a deceased’s ashes.

CCTV and security ​

The Property and infrastructure Office has published a Parish minimum standards security guideline to help parishes minimise the chances of property being lost and people’s safety threatened. It provides advice on how to minimise the risk of unauthorised entry to parish property and the associated threats to people, first, and then property.

Heritage-listed buildings and Conservation Management Plans ​

Parishes are advised to put in place a Conservation Management Plan (CMP) and to commission a quadrennial report from a suitably qualified architect with heritage expertise.

A CMP considers the needs of the church and other listed property and provides an overall assessment of the significance of the building and its condition. A priority of works is identified, providing the opportunity for overall planning for the building and site, rather than relying on an ad-hoc response to planning where maintenance is undertaken as required. It also assists with potential state and federal funding applications.

The Archdiocese is in the process of developing a CMP template for heritage-listed buildings, which will be made available to parishes.