Repurposing or Decommissioning Houses of Worship

The COVID-19 pandemic and social distancing have accelerated a trend which has been underway for many years – the closing of houses of worship. There are many reasons a congregation, parish, or other religious community might close down their physical house of worship. If the physical property will no longer be in use for worship and related services, what are the options?

Attendance has been declining for mainline churches for many years. In fact, between 6,000 and 10,000 churches close every year. Declining attendance means more unused space. Yet, expenses such as grounds maintenance, insurance, heating, and cooling remain, even as parishioners and their contributions decline.

Conversely, some churches find themselves in the opposite situation – holding aside pandemic- related restrictions that may have paused or halted growth. Increased attendance may mean that they require a new, larger church. That can mean the old building will need to be put to another use or liquidated.

In 2020, social distancing and stay-at-home measures have meant that nearly all churches have seen severe declines in in-person attendance and contributions. This can only increase pressure to repurpose, decommission, or liquidate the house of worship. This situation is more common than one might think – several thousand religious buildings have sold since 2014.

Coming to Terms and Getting Buy In

Once that decision has been made, what are the next steps? First, it will be helpful to have buy-in from parishioners and interested community members. Many will have a years or decades long relationship with the building – it has been a core part of their lives. Explaining the need to sell or repurpose can increase community cooperation with the process.

Many stakeholders may have difficulty accepting that potential buyers could put the building to a decidedly secular use. This could include businesses like breweries, entertainment venues, or bed-and-breakfasts. Conversion into a residential, multi-unit development is relatively common as well. It is essential to make sure that all interested parties understand that such uses are a possibility. If church leaders are lucky, some of the churchgoers may have insight into possible buyers or users for the church going forward.

Once all the stakeholders are on the same page, what needs to happen? It is always important for the individuals who are managing the repurposing or decommissioning should identify roles and expectations. The person who is most able to manage a sale may not be the person who manages the property.

The church as an organization may have a secularization or deconsecration process which needs to be followed as well. This will differ radically depending on the religion. Further, the timing and complexity of that process could delay the sale or repurposing of the physical property. For that reason, it is wise to start any required secularization or deconsecration sooner rather than later.

Remain Objective About the Sale

Next, identify the professionals who can facilitate the sale or repurposing. In most cases, this means a real estate broker. If the church will instead repurpose the real estate by putting it to an agreed secular use, then in all likelihood this will mean contractors, along with perhaps business and legal advisors. It is possible that these professionals are already within the church community. However, there may need to be a search outside of the community to identify the best people for each job. A “do it yourself” mentality can sometimes be cost effective and easy, but the congregation and church leaders may simply not have the relevant training and experience. That is to say, it can be valuable to bring in outside experts.

The next piece of advice is valuable no matter who the professionals are, what they are doing, and what the eventual goals are. The church leaders and interested community members should respectfully let the brokers, attorneys, accountants, and contractors do their work. While the sale or repurposing process can be emotional, it will have the best outcome if every party tries to play their part and only provide necessary input to any “hired help.”

Once that work is underway, if everyone involved provides the necessary assistance and input, the sale or repurposing should reach a positive conclusion. These processes can be bittersweet, particularly once the final sale closes or the repurposing is complete. However, with proper planning, the church community can be sure that their house of worship will not fall into disuse and decline, and that the eventual sales proceeds can be put to charitable or religious uses.