Be it resolved that the Detroit Annual Conference adopt the following policy relating to clergy housing.

The historic parsonage system is the basic housing policy of the Detroit Annual Conference. In recognition of changing circumstances which may indicate that the basic policy of a church-provided parsonage may not be desirable in every situation, the Detroit Conference and the 1992 Discipline (parag. 270.2f(4)) recognize that exceptions thereto may be made.

All pastors serving full time in local churches, all conference staff members who are clergy, and district superintendents shall be provided with a parsonage or housing allowance. Housing or a housing allowance shall not be considered as part of compensation or remuneration, but shall be considered as means provided by the local church/conference, and for the convenience of the local church/conference to enable its ministry and the itinerant ministry of the annual conference.

1. The guidelines for providing a house allowance are as follows;
   
   • Negotiations to establish a housing allowance in a local church will include the pastor, the pastor/staff parish relations committee, and the chair of the board of trustees. The district superintendent shall be informed before and as negotiations progress. The purpose of these negotiations is to develop a clean understanding by all parties as to the arrangements mutually acceptable. Final arrangements must have approval of church/charge conference.
     

   • Negotiations to establish a housing allowance for a cabinet appointment will include the district superintendent, the district superintendent committee, the district board of trustees or parsonage committee, the district board of church location and building, trustees of the annual conference, and the bishop. Final arrangements must be mutually agreed to by these parties.
     

   • Negotiations to establish a housing allowance for a conference staff appointment will include the staff person, the personnel committee, the trustees of the annual conference and the bishop. Final arrangements must be mutually agreed to by these parties.
     
2. A written record of the housing agreements (signed by the parties mentioned above) shall be maintained in the files of the district superintendent, the pastor, and the charge conference, and also by the bishop's office and conference trustees where applicable. The written statement will stipulate clearly 1) the amount to be allowed each month; 2) a written statement, signed by the pastor, agreeing the the arrangement for a housing allowance in lieu of a parsonage shall not hinder his/her participation in the itineracy for future appointments; and 3) a written statement, signed by the pprc, agreeing that the arrangement for a housing allowance in lieu of a parsonage shall not hinder the acceptance of a subsequent pastor appointment where a parsonage is requested. If, in subsequent appointments, a parsonage is requested, the local church/charge must provide a parsonage (either through purchase or rental). The church/charge shall also have the option to change to a parsonage at subsequent transition times.
   

3. It is recommended that a housing allowance may be based on the rental value of the current parsonage, or, if the church/charge does not own a parsonage, on the rental value of an average home in the parish setting that meets conference parsonage standards. IN addition to the housing allowance or parsonage the actual cost of utilities will also be provided.
   

The down payment and closing costs on a house and all other costs of purchase and maintenance are the responsibility of the pastor and are not included in housing arrangements.

• No asset from the sale of a church owned parsonage shall be used for current operating expenses of the charge (Discipline para.2543.1) Proceeds from the sale of such a church owned parsonage shall be placed in escrow by the trustees of the local church, at least equaling an amount necessary to cover the future purchase of a home meeting parsonage or an amount to cover a down payment (of not less than 20% of cost of home meeting parsonage standards in the area) plus closing costs. It is recommended that the principal amount on the escrow be adjusted annually to provide equity with inflation and the real estate market. Interest received from an escrow account maybe used toward the provision of a housing allowance. Any such sale of a church owned parsonage must include consent from the pastir, district superintendent, board of church location and building, and the charge conference (Discipline papa. 2540.2541)
  

If the parsonage is not sold, but held for rental purposes, income there from may be applied toward a housing allowance for the pastor or for current expenses. Said rental parsonage shall be maintained at the conference and local community rental housing code standards and inspected annually by the local board of trustees, in readiness for possible future use as a parsonage.

• Once initiated, a housing allowance is expected to continue for the duration of a pastoral appointment. The allowance shall be subject to annual approval of the charge conference. The charge conference shall not have the authority to reduce the housing allowance without negotiation and consent of the pastor, pprc, and the district superintendent.
  

• The local church/charge shall allow the pastor who receives a housing allowance to live where he/she chooses in the community served. If the pastor chooses to live outside the communities service, he/she must receive consent of the pprc and the district superintendent.
  

• The housing allowance may be used for purchase, rent, or lease as desired by the pastor.
  

• The incoming pastor shall have no obligation to purchase the house of his/her predecessor.
  

• If a church needs to purchase a parsonage for an incoming pastor, some housing accommodations shall be provided for the pastor until the new parsonage is ready, and any extra moving costs shall be the responsibility of the local church.
  

If a pastor requests a housing allowance, after living in the parsonage, the costs of moving to another home using a housing allowance is the pastor's. If a church requests the move to housing allowance, the costs are borne by the church.

 

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