The Americans with Disabilities Act requires places of public accommodation to be accessible to people with disabilities, and California goes further with its own stricter building codes under Title 24 and the Unruh Civil Rights Act, which extends protections and liability exposure well beyond the federal standard. For churches built before 1992, when the ADA took effect, or those that have undergone alterations triggering compliance upgrades, the cost of meeting accessibility requirements can reach tens or hundreds of thousands of dollars. Traditional banks typically decline to fund this work. BDM Mortgage does not.

Do ADA Requirements Apply to Churches?

This is among the most frequently misunderstood questions in church administration. The ADA itself exempts religious organizations from Title III requirements for places of public accommodation — meaning a purely private worship service is technically not subject to ADA mandates. However, the exemption narrows considerably in practice:

• Churches that operate preschools, daycares, food pantries, counseling centers, or other programs open to the public lose ADA exemption status for those programs and, in many interpretations, for the entire facility when those programs are in operation
• California’s Unruh Civil Rights Act and Title 24 building codes apply independently of the federal ADA exemption and impose accessibility requirements on a broader range of church activities than federal law
• Churches that undergo renovations or additions are typically required to bring the altered portions — and a portion of the path of travel to those areas — into compliance with current accessibility standards as a condition of building permit approval
• Churches that host community events, rent their facilities to outside groups, or provide services to the public face heightened exposure to accessibility complaints, particularly in California where plaintiff attorneys actively pursue ADA-related claims

In practical terms, the vast majority of California churches that open their doors to anyone beyond their own membership have meaningful ADA exposure, and the financial risk of non-compliance typically exceeds the cost of the upgrades required to achieve it.

The Liability Risk of Deferred Ada Compliance

California has one of the highest rates of ADA-related litigation in the United States. Serial plaintiffs and plaintiff law firms actively identify non-compliant facilities, send demand letters, and file lawsuits that can result in statutory damages, attorney fee awards, and mandatory injunctive relief requiring immediate compliance upgrades. For churches, the specific risks include:

• Complaints filed with the California Department of Fair Employment and Housing or the U.S. Department of Justice under the ADA
• Civil lawsuits under the Unruh Civil Rights Act, which provides for minimum statutory damages of $4,000 per violation per visit
• Building permit denial or project holds when churches seek to remodel, expand, or make any structural change to a non-compliant facility
• Reputational harm when congregants or community members with disabilities are unable to access programs or worship services

Funding accessibility upgrades proactively is almost always less expensive than responding to a complaint or lawsuit after the fact.

Why Banks Decline to Finance Church ADA Projects 

From a bank’s perspective, ADA compliance work presents many of the same challenges as seismic retrofitting: the project does not generate revenue or create an easily measurable increase in appraised property value. Banks view accessibility upgrades as maintenance expenditures rather than capital investments, and they are reluctant to originate loans for work that does not fit their standard underwriting model. Additionally:

• Many ADA projects fall below the $500,000 minimum loan threshold that community banks and credit unions require for commercial church loans
• Banks require extensive documentation — audited financials, CPA statements, tax records — that churches operating on lean administrative budgets struggle to produce on short timelines
• Personal guarantee requirements deter church leadership from pursuing bank financing even when they might otherwise qualify
• Bank loan committee timelines of 60 to 120 days make it difficult to fund compliance work that may be required as a condition of an active permit or in response to a demand letter

How BDM Mortgage Funds Church ADA Campliance Projects 

BDM Mortgage looks at church ADA compliance loans through a straightforward lens: the church holds real property equity, the project preserves the church’s ability to operate and serve its community, and the loan can be structured so that monthly payments are manageable relative to the congregation’s ongoing revenue. That is enough to build a loan on.

• Equity-based underwriting: Approval is based on the value of the church’s real estate, not on donation history, attendance trends, or years of audited financials
• No personal guarantees: Church leaders and board members are not required to co-sign or pledge personal assets
• Fast closings: Typically 30 to 45 days from application to funding, allowing churches to meet permit conditions or respond to compliance demands without delay
• Fully amortized 15-year loans: No balloon payment at term end — the loan pays off completely on a predictable schedule, freeing the church from the refinancing cycle common with bank programs
• Minimal documentation: No tax returns, no CPA statements, no personal credit checks required

How to Apply for a Church ADA Compliance  Loan Through BDM Mortgage 

Navigating financing for your California church can seem complicated, but BDM Mortgage Services sets out to make it easy and accessible for congregations of all sizes. When you approach BDM, we provide a simple checklist that’s designed to streamline your process for acquiring a loan for property improvements, expansions, or refinancing. The requirements are straightforward:

1. Gather basic documents: Articles of Incorporation, By-laws, property fire insurance information, and 12 months of bank statements
2. Prepare a Letter of Resolution: On church stationery, authorizing BDM to arrange financing, signed by a church member who is not signing the loan documents
3. Provide Board of Directors information: Names and addresses of all current board members
4. Disclose existing property loans: Lender information and outstanding balance on any current mortgage
5. Receive funding in 30 to 45 days: Move forward with your compliance project on the timeline your permits, contractors, and legal obligations require

View the complete Church Loan Checklist or call BDM Mortgage at 1-800-439-9551 to discuss your accessibility project with a church financing specialist.

Denominations and Church Types We Serve

BDM Mortgage has funded ADA compliance and accessibility improvement loans for California churches across all faith traditions and sizes, including Catholic parishes, Baptist congregations, Methodist churches, Pentecostal and Charismatic assemblies, Episcopal and Anglican congregations, Presbyterian churches, Lutheran parishes, Seventh-day Adventist churches, non-denominational fellowships, Korean-American churches, Vietnamese-American congregations, Spanish-language evangelical ministries, African American Baptist and AME churches, and interfaith community centers. Whether your building was constructed in 1945 or 1988, BDM Mortgage can help you fund the accessibility improvements that allow every member of your community to worship and participate fully.

With more than $500 million in funded church loans throughout California and a deep understanding of how faith-based organizations operate, BDM Mortgage is the lending partner California churches trust for financing that banks will not provide. Contact us today to get started.

Disclaimer: This article is for informational purposes only and does not constitute legal advice regarding ADA compliance obligations, California building codes, or civil liability. Churches should consult licensed legal counsel and a certified access specialist (CASp) for guidance specific to their facility and circumstances.