Question & Answer

LEADERSHIP & GOVERNANCE

  1. What's an executive pastor? A: Part of executive team responsible for effective overall operations of church and affiliate entities.
  2. I heard the word diversity used for the Deacons and Elders... What is being done to ensure continuity and input from all segments of ESC? A: ESC has a Church Council consisting of men and women of diverse ages and skills that represent the congregation. We also have a teen council led by our Youth Pastor as well as youth and young adult leaders at each campus. We are thankful for a new Lead Pastor under 40 with strong relationships with the younger generation. Intergenerational engagement is very important to us during this NEW SHIFT.
  3. What is ESC doing to promote itself outside of Indianapolis? A: ESC is increasing its online presence, including Faith Talks and TV40.
  4. Are there pictures of the proposed properties and a mark-up of the vision? A: Both properties are Indiana Housing Authority properties. We are in the acquisition and due diligence phase, so we have not shared pictures, but they are available through public online sources.
  5. Can we have one message regarding voting to reduce confusion? A: Based on past practices, only out-of-state members are allowed to vote remotely. In-state members must vote in person. Email communication will be provided to eligible members with voting instructions.

PROPERTY MANAGEMENT & OPERATIONS

  1. Will the complex units be under HUD bylaws? Will the name remain the same? A: We are in the RFP phase of acquiring properties. There are due diligence items we are investigating with our legal, financial, and consulting team. These specifics will be addressed as we move forward.

  2. Who would be the property management company? A: We are in the competitive RFP process. No property manager has been identified. Proposals from reputable managers will be sought based on the asset’s needs.

  3. Who will serve as the property management company for these two apartments? A: We are in the competitive RFP process. No property manager has been identified. Proposals from reputable managers will be sought based on the asset’s needs.

  4. What will happen to the families in each of these properties when purchased? A: ESC already serves many Beechwood families through existing programs and will continue doing so after acquisition.

  5. Will current residents at Beechwood have the option to remain? A: Specifics are still under review. Resident needs and rights will be considered during due diligence and legal consultation phases.

RENOVATION, VOTING, & LOGISTICS

  1. Will there be renovation and opportunities to volunteer? A: Renovations will be needed. Volunteer opportunities will be evaluated based on safety and legal guidance once ESC is the successful bidder.
  2. Will voting be available remotely? A: No. In-state members must vote in person per bylaws. Remote voting is only for out-of-state members.
  3. What renovations are needed to raise occupancy above 25%? A: Beechwood and Hawthorn are approximately 25% occupied and in need of repair. Full scope is being determined in due diligence.
  4. Will we renovate/make improvements if acquired? A: Yes.
  5. Is the preference to buy both properties? A: Preference is Beechwood, but Hawthorn may be included due to ownership structure.
  6. Why are the apartments only 25% occupied? A: Likely due to poor condition of units. Full understanding will come through due diligence.
  7. Is the vote to approve the purchase funds? A: Yes. Church Council has approved, but member vote is required for transaction.
  8. How much of the money will go toward renovation? A: Acquisition should not exceed ~$3M. Other costs including renovation will be further defined as process continues.
  9. Why can’t virtual/online members vote? A: Only out-of-state members may vote remotely due to longstanding bylaws.
  10. Can we vote early if we can’t be there on June 8? A: No early voting is permitted.
  11. What’s the plan for Hawthorn if we must acquire it? A: ESC intends to sell Hawthorn as soon as feasible if required to acquire it.
  12. Estimated cost for renovating both facilities? A: Still unknown. Will be assessed during due diligence.
  13. How soon can rental income assist with debt? A: Will be determined during due diligence and cash flow projections.
  14. Will the voting process be like the Lead Pastor vote? A: Similar in principle, but not the same method (i.e., no paper or electronic ballots).

LONG-TERM PLANNING & BYLAWS

  1. Is there a 5–10–20 year plan? A: A long-term plan will be developed as part of the ongoing strategic planning efforts.
  2. Can I vote if out of town Sunday? A: No. In-state members must vote in person.
  3. How much of projected cost is renovation? A: Current projections focus on acquisition. Renovation costs will be shared once determined.
  4. Will the waitlist get first option to live there? A: Too early to confirm. No decision yet on tenant priority.
  5. Are the apartments for families and seniors? A: Yes, available to all who meet rental qualifications.
  6. Can I vote early in person before June 8? A: No.
  7. Where are the bylaws? A: Available for member viewing by contacting the church office.
  8. What’s the church’s vision for the area? A: This is part of the ROCK Initiative (Renewing Our Community for the Kingdom). More at www.rockinitiative.org.
  9. Same voting manner as last vote? A: No. In-person standing vote will be used.
  10. What will renovations cost and how does that factor into debt payback? A: Will be defined through due diligence and reflected in cash flow projections.
  11. Who are our partners? A: ESC is supported by philanthropy, legal, and financial partners, many of whom have supported our past $25M in community investment.
  12. Will bylaws be updated to allow simpler voting? A: Improvements are being explored, but current voting remains in person for Indiana members.
  13. Will there be a building fund? A: To be determined after due diligence and assessment of funding needs.
  14. Can bylaws be posted online? A: Yes, will be included in the secure member portal as the site is updated.
  15. Will funds be available for major repairs post-purchase? A: Yes, planning will include such funding as needs are identified. RENOVATION & OCCUPANCY
  16. Do we know why occupancy is so low at these apartments? A: As we progress through the acquisition phase and learn more, we will better understand all contributing factors.
  17. In addition to cash needed, how much more is required before apartments can be rented? A: Will be determined as we move through the due diligence process.
  18. What is the projected amount needed post-acquisition to rehab units? A: Will be defined through due diligence.
  19. After purchase, is there a projection for renovation costs? A: These will be projected once acquisition is complete and inspections are conducted.
  20. Does the cost shown include unit renovations? A: Current projections focus on acquisition. Renovation costs are still being determined.

HOUSING TYPE, VOTE DETAILS, BUDGET

  1. Will these be market-rate or affordable housing? A: All of our current properties are affordable. Future acquisitions are expected to remain affordable.
  2. Will the apartments still be income-based or Section 8? A: We are still determining this as part of due diligence. Most current properties are income-based.
  3. Will the apartments continue to be HUD-subsidized? A: As with our current properties, they will likely continue to be affordable and possibly HUD-subsidized, pending acquisition details.
  4. Can we get a copy of the bylaws? A: Yes, by contacting the church office. Plans are underway to add them to the secure member portal.
  5. Was the $2.8M in the 2025 budget? A: No. It was not in the operational budget, but sufficient reserves are available for this capital expenditure.
  6. Will voting be done in the sanctuary? A: Yes, after each service using a “Standing Vote” process.
  7. What age must you be to vote? A: All in-person members present on June 8 are eligible to vote.
  8. Will voting be electronic or on paper? A: No. Voting will occur via “Standing Vote,” not electronically or by paper ballot.

ENCOURAGEMENT & SUPPORT

  1. Will money be needed to get the units ready? How much on average? A: Yes, but specific amounts will be determined through the RFP and due diligence process.
  2. What will happen to current families? A: Will be determined in accordance with legal and property management guidance. Compassion and continuity of care will be prioritized.
  3. Does the church have the $2.8M for the purchase? A: Yes. Through generous giving and responsible stewardship, ESC has adequate reserves.
  4. What additional staffing is needed for maintenance? A: Staffing needs will be evaluated once the property is acquired and scope is finalized. ESC intends to hire a qualified property management firm.
  5. Will the results of the vote be made public? A: Yes. Members will be notified.
  6. What percentage of members must vote for approval? A: A quorum requires at least 40% of members based on the last 12-week average in-person attendance. A majority affirmative vote is required for approval. FINANCIAL DUE DILIGENCE, OPERATIONS & COMMUNITY IMPACT
  7. Based upon the offering of acquiring the apartments, was our church offered and able to get the best price for the apartment units? A: ESC is participating in a competitive RFP process. Our legal and financial partners are involved to ensure we secure the most favorable terms possible. We are not purchasing the property at a fixed price without due diligence and competition.
  8. Was a feasibility study done on the property? A: A comprehensive due diligence process is underway, which includes feasibility analysis by external experts in real estate, housing, and property development.
  9. In securing title to the real estate, how will our church ensure we will not be liable for any unpaid debts or past due utilities tied to the apartment complex and that the deed to the property is free and clear? A: ESC is working with experienced legal counsel to ensure clean title, resolve liens, and verify all utility and tax obligations prior to acquisition.
  10. What is the timeline from start to finish in acquiring the Beechwood Gardens? A: We are currently in the RFP phase. Timelines depend on selection, legal review, and closing process. Updates will be provided as milestones are met.
  11. Will the apartment complex be listed as a non-profit to avoid property taxes? A: ESC and its partners are exploring options related to nonprofit designation and tax exemption, subject to legal review and property use.
  12. What incentives or write-offs is the City of Indianapolis offering? A: As part of due diligence, ESC is evaluating all potential incentives and abatements available through the City of Indianapolis and other entities.
  13. Will some or all of the units need to be renovated, and if so, is that included in the purchase price/budget? A: Yes, many units will need renovation. The purchase price does not include all renovation costs, which will be budgeted separately based on due diligence findings.
  14. How expensive will the insurance be to insure all the units? A: Insurance costs will be evaluated during acquisition planning and will be part of the financial projections.
  15. Has there been a pre-assessment/inspection of each unit, its condition, and needs? A: A detailed property assessment is a key part of the due diligence process. Inspections and condition reports are being reviewed as information becomes available.
  16. Are units painted, have new flooring, smoke detectors, updated appliances, HVAC, plumbing fixtures, cable readiness, and up to code? A: These details are being assessed unit-by-unit through property inspections. Full compliance and necessary upgrades will be planned post-acquisition.
  17. Reports have cited issues such as roaches and mice in some Indianapolis Housing Authority units. Will such issues be addressed immediately if discovered? A: Yes. Health and safety are top priorities. Any pest issues identified during inspection or transition will be addressed immediately.
  18. What is the condition of the playground, and has consideration been given to repairs or replacement, including the clubhouse? A: These elements are being evaluated as part of property assessment. Repair and renovation of shared spaces will be included in improvement planning.
  19. Is landscaping considered in the transition? A: Yes. Grounds maintenance and beautification are part of the long-term stewardship of the property.
  20. Will ESC need to hire a property manager and additional maintenance staff? If so, what percentage will that add to the annual operating cost? A: ESC will contract with a qualified property management firm. Cost impact will be assessed once proposals are received. Maintenance staffing will be included in that scope.
  21. Has ESC estimated the monthly and annual cost to operate and maintain the apartment complex? Will the church make a profit? A: Financial projections are in progress. While profit is not the core goal, sustainability is key. Positive income is expected to cover operations and future improvements.
  22. Will Beechwood Apartments generate enough positive income to pay for and maintain itself? A: That is the intent. Cash flow projections will be finalized after due diligence and will guide operations planning.
  23. Will the apartment units be under Indianapolis Housing guidelines, ESC, or both? A: ESC is reviewing housing compliance requirements. Properties will operate within legal guidelines, which may include a combination of city, HUD, and internal standards.
  24. Will current residents still be able to afford to live there after acquisition? A: Affordability is a key commitment. ESC intends to preserve affordability for existing residents.
  25. Will current residents still be eligible for Section 8 or similar rental subsidies? A: ESC will operate in compliance with all applicable housing guidelines and eligibility requirements. As we continue through the due diligence process, we will be able to provide a more detailed and accurate response to this question.
  26. How will maintenance and property upkeep impact ESC’s overall operations budget? What is the projected cost increase? A: This will be determined once full operational plans and property management agreements are in place.
  27. Will the apartment community undergo a name change? A: This has not been finalized. A name change may be considered as part of the rebranding or improvement process.
  28. How will ESC inform current residents of the ownership change? A: Upon acquisition, ESC and/or the selected property manager will communicate directly and respectfully with residents regarding all transitions, timelines, and expectations