Preparing for the Next 10 Years: Cost-to-Cure Reports for Church Facilities

Introduction

Churches are more than just places of worship—they are multi-functional facilities that often serve as schools, community centers, and event spaces. Their buildings must remain safe, accessible, and financially sustainable for decades. Yet, many church boards, pastors, and administrators face a recurring challenge: how to anticipate long-term building costs and budget wisely for the next 10 years.

This is where a Cost-to-Cure Report becomes invaluable. A cost-to-cure report projects the expected costs of maintaining, repairing, or upgrading a facility over a set period (often 10 years). For churches, which typically operate on tight budgets funded by congregations, foresight into future expenses can mean the difference between thriving ministries and unexpected financial crises.

According to ASTM E2018—the industry standard for Property Condition Assessments (PCAs)—cost projections are a critical part of due diligence. The Cost-to-Cure Report, often bundled within a PCA, provides decision-makers with a financial roadmap that reduces risk and preserves long-term functionality.

Preparing for the Next 10 Years: Cost-to-Cure Reports for Church Facilities

What Is a Cost-to-Cure Report?

A Cost-to-Cure Report is a forward-looking analysis that outlines the estimated expenses required to maintain or restore a property over a 10-year horizon. It is not a vague budget—it is tied to actual building systems, observed deficiencies, and anticipated lifecycle replacements.

For church facilities, this means:

• Roofing replacement cycles

• HVAC unit lifespans and upgrades

• Accessibility (ADA) compliance retrofits

• Parking lot resurfacing

• Electrical or plumbing modernization

• Interior finish upgrades (paint, flooring, seating)

Unlike a simple maintenance checklist, the cost-to-cure report organizes these needs into a timeline of projected capital expenditures and includes inflation year-over-year.

Why Churches Are Particularly Vulnerable

Church facilities present unique challenges that make cost-to-cure reporting especially important:

1. Irregular Usage Patterns
   Churches may be used heavily a few days a week but sit empty the rest of the time. This uneven load creates unusual wear on HVAC systems and plumbing.

2. Deferred Maintenance
   Many congregations delay major repairs to focus on ministry programs, leading to hidden liabilities that grow more expensive over time.

3. Aging Structures
   In the U.S., thousands of churches were built between the 1950s and 1980s. These facilities are now hitting a critical stage where roofs, electrical systems, and parking lots all require attention.

4. Accessibility Requirements
   ADA compliance is often overlooked. Churches may face significant legal and financial consequences if facilities are not accessible to people with disabilities.

5. Budget Constraints
   Unlike corporate owners or REITs, churches rely on donations. Large, surprise costs can derail operating budgets and ministries.

Real-World Example

A mid-sized church in the Midwest discovered through a PCA with a cost-to-cure report that within the next 10 years it would need:

• $150,000 for roof replacement

• $80,000 for HVAC upgrades

• $50,000 for ADA restroom retrofits

• $25,000 for parking lot resurfacing

By spreading these costs across a decade, the church leadership was able to build a capital reserve strategy, conduct targeted fundraising campaigns, and avoid sudden emergency expenses.

Cost-to-Cure vs. General Maintenance Planning

It’s important to distinguish between maintenance planning and cost-to-cure reporting.

• Maintenance Plans address routine tasks such as HVAC filter replacement or plumbing inspections.

• Cost-to-Cure Reports address capital expenditures—the big-ticket items like roofs, chillers, elevators, and accessibility upgrades.

For lenders, brokers, and investors in the commercial real estate sector, this distinction is critical. For churches, it means the difference between handling small repairs reactively and anticipating large expenses proactively.

The Role of Property Condition Assessments (PCA)

ASTM E2018 sets the framework for Property Condition Assessments (PCAs), which are often bundled with cost-to-cure reports. A PCA provides:

• A visual walk-through of the property

• Documentation of existing deficiencies

• Analysis of building systems

• Cost-to-cure projections for immediate and future needs

For churches, a PCA combined with a cost-to-cure report becomes a strategic planning tool. Boards can prioritize projects, seek financing, and communicate transparently with congregations.

ADA Compliance in Cost-to-Cure Reports

Accessibility is a growing concern. Many churches, particularly those built prior to the 1990 ADA legislation, were not designed with accessibility in mind. A cost-to-cure report highlights where compliance gaps exist—such as ramps, door widths, bathrooms, and parking access—and provides a projected cost for upgrades.

For example, retrofitting a church to include an elevator might cost upwards of $100,000. By forecasting this in a cost-to-cure report, leaders can plan phased improvements rather than face an emergency lawsuit or denial of occupancy.

Benefits for Church Leaders and Decision-Makers

1. Financial Stewardship
   Transparent planning demonstrates responsible use of congregational funds.

2. Risk Reduction
   Proactively addressing safety and accessibility reduces liability.

3. Strategic Fundraising
   Churches can launch campaigns tied to clear, documented needs.

4. Operational Continuity
   Avoids disruptions to worship and community programs caused by sudden failures.

5. Alignment with CRE Best Practices
   By adopting the same reporting structures as commercial real estate investors and lenders, churches demonstrate credibility and professionalism.

How Lenders and Investors View Cost-to-Cure Reports

While most churches do not operate like traditional commercial investors, some rely on financing for expansions or refinancing. Lenders often require PCA reports compliant with ASTM E2018. Having a cost-to-cure report ready can smooth financing approvals and negotiate better terms.

Investors in religious or nonprofit facilities also benefit from visibility into long-term costs, ensuring that assets remain sustainable.

Practical Takeaway

For churches, preparing for the next 10 years isn’t just about ministry vision—it’s about ensuring that facilities remain safe, accessible, and financially viable.

A Cost-to-Cure Report:

• Provides a roadmap of expenses

• Prevents deferred maintenance disasters

• Enables better stewardship of limited funds

• Builds confidence with lenders, congregations, and community stakeholders

Church leaders considering inspections should partner with a qualified commercial inspection company familiar with ASTM E2018 standards and CCPIA guidance. This partnership ensures the resulting report is not just a list of problems, but a strategic tool for planning ministry growth.

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Bibliography:

1. ASTM International. (2018). ASTM E2018-15: Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process. Retrieved from https://www.astm.org/e2018-15.html

2. CCPIA. (n.d.). Commercial Property Inspection Standards of Practice. Certified Commercial Property Inspectors Association. Retrieved from https://ccpia.org

Keywords:

• Commercial building inspections

• Property Condition Assessment (PCA)

• ASTM E2018

• CCPIA commercial inspections

• Cost-to-Cure Report

• Church facility inspections

• ADA compliance inspections

• Capital reserve planning for churches

• Long-term facility budgeting

• Religious facility maintenance planning

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