H1. Manse Policy
Manses are held in trust for the purpose of housing Ministers and other Church workers’ under the terms of the URC Act. Part II of Schedule 2 sets out the Trust provisions. Clause 2 (e) relates to manse lettings and Clause 5 relates to the sale of redundant manses
The Policy
1.0 Policy Objectives
1.1 The two main objectives of the Policy are:
(i) to ensure that all stipendiary ministers in the synod are properly housed. Section H Policy in the N/W Synod guidelines sets out the requirements to meet the Plan for Partnership standards.
(ii) to enable manses to be provided in suitable locations to meet current and future pastorates requirements.
2.0 General Principles
2.1 Deployment of ministers should drive manse availability.
2.2 The policy will be operated through a Synod Manse Scheme (SMS) and supported by a Synod
Manse Fund (SMF).
2.3 Manses will continue to be held under the URC N/W Provincial Model Trust and the responsibilities for capital expenditure and maintenance will be fulfilled by the (SMS)
2.4 Local Pastorates utilising manses will be responsible for general (non capital) maintenance, but the cost of this maintenance will be reimbursed from the SMF – see Appendix “1”.
2.5 Housing Allowance will be paid by the (SMS).
2.6 It is recognized that churches owning manse funds or manses on which they are receiving rental income may be financially disadvantaged by entering the scheme, but transitional arrangements are being put in place, please see Section 7 for details.
2.7 The (SMS) will satisfy itself on the condition of a manse prior to accepting the manse into the Synod Manse Scheme. In certain circumstances, churches may be asked to contribute to capital maintenance prior to the transfer of ownership.
3.0 The Synod Manse Fund (SMF)
3.1 A designated Synod Manse Fund (SMF) will be created to meet policy requirements and will receive the proceeds from manse sales, local church manse funds and income from manses within the scheme; with the previous beneficiary receiving income at the current level, tapering linearly to zero over a period of time. Please refer to Section 7 for details.
3.2 Churches for which the transitional arrangements described in 2.6 apply, will be allowed to opt for a single capital payment rather than a number of reducing annual payments.
3.3 The SMF will be administered by the Synod Resources Committee through the Finance
Officer, and will maintain a suitable working capital with the remainder of the Synod Manse Fund retained in property.
3.4 The SMF will be used to improve, replace or provide manses. Such improvements will not be
made against the wishes of current occupiers; unless they are required on grounds of Health & Safety or to carry out essential repairs.
4.0 The Synod Manse Scheme (SMS)
4. 1 The SMS will be administered by the Synod Resources Committee and the team appointed
to do the work.
4.2 When a pastoral vacancy is to be declared, the Area Pastoral Committee and the Synod Resources Committee will agree if an existing manse (whether within the SMS or not) meets the requirements of the Scheme and the Pastorate, or alternatively agree what measures are required to upgrade an existing manse, or provide a new property.
4.3 The pastorate will continue to be responsible for general maintenance as set out in appendix “I” of this Policy, including their responsibilities under the Plan for Partnership, through a locally appointed contact. However, these costs will be reimbursed from the SMF.
4.4 The SMS will provide the capital for works as set out in appendix “2” of this policy. During the early months and years the SMF may not contain sufficient funds to meet all the demands placed on it. The SRC will work with Area Pastoral Committees to priorities appropriately.
4.5 When a manse is vacant it will be `let’ in the name of the Trust Company using an approved
Assured Shorthold Tenancy agreement.
4.6 When a manse in the SMS is no longer required it will be sold and the net proceeds added to the SMF.
5.0 Joining the Manse Scheme
5.1 When a Church indicates its wish to join the SMS, it will be necessary for the church to pass a church meeting resolution to join. Prior to this, details of the property and funds, the timing of the entry into the scheme and any transitional arrangements would have been agreed with the Area Pastoral Committee and the Synod Resources Committee see appendix “3”. A Standard Resolution is given in appendix “4” of this policy, which will require approval by the church meeting and the agreement of the Synod Resources Committee.
5.2 When local churches with manse funds or manses currently being let join the SMS then future income from those sources will go to the SMF, subject to the transitional arrangements set out in Section 7.
5.3 When a resolution to join the SMS is passed, the approval of the trustees will be required.
5.4 The resolution of a local church to join the SMS will need to deal with its manse, any manse funds and any agreed transitional arrangements regarding future income from those sources and also regarding recent capital expenditure.
6.0 Housing Allowance and removal expenses
6.1 All approved housing allowances will be paid from the Synod Manse Fund.
6.2 Removal costs for ministers and CRCWs changing roles or pastorates are normally reimbursed from central URC funds. Where the synod initiates a house move within the synod as a result of this policy, all expenses incurred in relocation, including removal costs will be met by the synod.
7.0 Transitional arrangements
7.1 The circumstances of each pastorate will be unique and, therefore, detailed arrangements to transfer a manse and/or a manse fund to the synod will need to be agreed between the parties.
7.2 Manse refurbishment and improvement costs
The synod will reimburse the pastorate on a sliding scale for recent expenditure on refurbishment and improvement costs, but not routine repairs. The sliding scale will be:
- 100% of expenditure in the current and previous calendar years;
- 90% of expenditure in the current – 2nd calendar year; …
- 10% of expenditure in the current – 10th calendar year.
7.3 Manse rental income
The synod will recompense a church or pastorate on a sliding scale for the loss of net rental income. The net rental income will be calculated as the average over the previous 3 years. The sliding scale will be:
- in the year of transfer and in the next calendar year, 100% of the net rental income less £1,000 to cover repairs and maintenance;
- in the second full calendar year, 80% of this figure; …
- in the fifth full calendar year, 20% of this figure.
7.4 Housing allowances and manse rental income
Where a pastorate receives rental income on its manse and also pays the housing allowance of its minister, the pastorate will be invited to choose either to transfer both rental income and housing allowance in full to the Synod immediately or to phase both over a 5 year period as above.
7.5 Investment income on manse funds
The synod will recompense a church or pastorate on a sliding scale for the loss of investment income on any manse funds transferred to the synod. The value will be calculated as the average income on the manse fund over the previous 3 years. The sliding scale will be:
- in the year of transfer and in the next calendar year, 100% of the calculated investment income lost;
- in the second full calendar year, 80% of this figure; …
- in the fifth full calendar year, 20% of this figure.
7.6 Calculations
It is suggested a 3 year average calculation of net rental income partly to allow for periods when manses are un-let and partly because this will avoid over-paying pastorates where the manse is being `let’ during a vacancy in theory at least on a short term basis.
The sliding scales have not been set from the actual date of the `opt in’ but, in effect, from the beginning or end of the year of transfer as appropriate.
8.0 Redundant manses
8.1 The provisions of Part 2 of Schedule 2 of the URC Act 1981, should apply and to meet this provision:
(a) A church meeting resolution is required in order to enable the Synod Resources Committee to give the custodian trustees the authority to sell the property;
(b)Any manse sold or managed must first be transferred to the North Western Synod Trust under the terms of the Synod Manse Policy. Any proceeds of the sale will be added to the SMF.
9.0 Timing
9.1 The Synod Executive strongly recommends that all manses are taken into the Synod Manse Scheme as soon as is practicable and not wait for a change of minister.
Appendix 1
Schedule of Responsibilities of the Pastorate for manses in occupation by Ministers or Church
Related Community Workers include.
Items in the Plan for Partnership principally buildings insurance, council tax, water rates and certain maintenance or Housing Allowance. NB these costs will not be covered by the £1000.00 allowance because the costs form part of the Settlement Agreement.
The provision of a contact person with responsibility for day to day matters regarding the manse.
General assistance in managing the property including being the local key holder.
Arrange annual building inspections.
Normal Maintenance:
external and internal decoration;
general repairs, not covered by insurance – e.g. repairs to existing doors, windows and repairs to glazing;
installation of smoke alarms and fire blankets;
minor repairs to roof and rainwater goods;
minor repairs to wiring;
repairs and alterations to external paths, hard standing, steps, fences etc;
the servicing of heating systems, plus the annual testing of electrical and gas installations for certification purposes.
Note: If a local church chooses to join the SMS it will be relieved of all responsibility for the costs of future purchase, refurbishment and repair of manses. All these costs will in future be met from the SMF. However, the success of the SMS will depend on local people in the local church continuing to look after their manse and to identify and plan for work that needs to be done on it. Each local church with a manse in the SMS will be provided with a float of £1,000 from the SMF. This float can be used to meet the costs of normal routine maintenance, as indicated above. Any costs incurred will be reimbursed from the SMS on the submission of receipted invoices to the Synod Finance Officer.
Appendix “2”
The Synod Manse Scheme will be responsible for the following items in consultation with the Pastorate:
access facilities for the disabled when required;
an alarm system;
any professional, planning, building control fees, etc, in connection with any items in this list;
any major structural repairs not covered by insurance;
any work required by Health & Safety regulations;
extensions and alterations required to bring the manse up to the latest recommended National manse guidelines;
modernisation of the bathroom;
modernisation of the kitchen;
refurbishment or replacement windows;
new central heating system;
new fences and or boundary walls where the replacement is necessary other than by damage covered by insurance;
professional planning and building control fees;
the replacement of new central heating boiler;
the replacement of the roof including any existing flat roof;
the replacement of external doors;
the replacement of barge boards by UPVC;
the provision of any facilities for the disabled.
Appendix 3
Transitional Arrangements
Transitional arrangements will be negotiated between church representatives and those representing the synod and responsible for Synod Manse Scheme. Such negotiations will include not only the arrangements set out in 7.0 to 7.6 in the policy document, but may also include:
- development of an arrangement which will take full account of the needs of the church;
- assisting the church in a financial review of their income and expenditure;
- a shared approach of income apportionment;
- cancellation of manse loans;
- consideration of the current condition of the property;
- provision of documentation of legal and physical aspects of the property.
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