Board and community-funded property

All costs for board-funded buildings, services and land must be paid for using board funding. As a board of trustees, you may apply to transfer such property to Ministry ownership. You may also sell property funded by the board or community, though it is usually only practical to sell land.

Paying the costs of board-funded property

You can raise money to buy or build facilities that we don’t fund, like swimming pools and playgrounds. Money you raise from fundraising, grants and bequests is called board funding or discretionary funding.

Find out more about board funding and what you can use it for.

When you build or buy something with board funds, you must pay all the ongoing costs including maintenance, capital upgrades, insurance and operational costs.

If you shared building costs with the Ministry and/or community, you also share the ongoing costs based on ownership percentages. This is shown in the following table.

Responsibilities for ongoing costs of property depending on ownership

Paid for using

Owned by

Who pays ongoing costs

Board discretionary funds

Board

You must use board funding to pay for all ongoing costs including maintenance, capital upgrades, insurance and operational costs.

Partly board, partly Ministry funding

Board and Ministry

We will contribute funding to ongoing costs in proportion to our ownership. You must pay your share from board funding.

Partly board and partly community funding with the community retaining a share of ownership

Board and community

You must pay your share from board funding. The community must contribute to costs in proportion to its level of ownership. The community’s share must be recorded in the appropriate Ministry lease agreement.

Community funding on school land

Community

The community must pay all the costs associated with the facility, like a sports arena.
The community’s ownership and responsibilities must be recorded in the appropriate Ministry lease agreement.

Note: For more on lease agreements, go to leasing or hiring your school land and buildings to third parties.

Weather-tightness exception

If you have a board-funded building with weather-tightness failure (leaking), we may help with funding to fix it. For more information, go to weather-tightness failure of school buildings.

Insuring board-funded property

You should insure board-funded property. We will not replace it if it is damaged or destroyed.

If we have part ownership, we will insure our portion through the School Building Insurance Funding programme.

Transferring a board-owned building to the Ministry

You can ask to transfer ownership of your board-owned buildings to us:

Notes

  1. Unless we agree to transfer them, board-funded classrooms do not count as part of your teaching space entitlement because they are not Ministry-funded.
  2. If the building you want to transfer is jointly owned by you and us, we will only buy your portion. We will not pay for any property we originally funded.
  3. You keep ownership of any area of the building that is over your SPG entitlement.

Applying to transfer

To apply to transfer board property to us:

  1. notify us in writing that you wish to sell us your board-owned property
  2. engage a qualified consultant to do a condition assessment of the building or services, using the Fit for Purpose Assessment Form [PDF, 573 KB] and pay all assessment expenses. 

We will assess your application and advise you if we agree to accept its transfer.

Upgrading a building that is transferred to the Ministry

If we agree to the transfer, you will have to decide what upgrades are needed to make the building fit for its new use and/or meet Ministry standards. We will agree a project budget for you under the SPG programme or as a new teaching space project (depending on what type of space the transfer will address).

Carry out any upgrade work following our usual project management requirements.

Selling property funded by the board or community

You may wish to sell property paid for with board or community funding.

  • It is not usually practical to sell buildings or services because it’s often difficult to divide the building or services from the school site.
  • It may be possible to sell land. 

As a board of trustees, you are a Crown agent so any disposal must go through the Crown disposal process.

Talk to the team at your local Ministry office for advice about selling your board-owned property.

Receiving the sale proceeds

The net proceeds of the sale are divided among the owners based on their percentage of ownership. Net proceeds are the amount left from the sale after all costs relating to the sale are paid.

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