Santa Rosa Diocese Bankruptcy Archives

Image: Coat of arms of the Diocese of Santa Rosa in California; via Wikipedia.The Catholic Diocese of Santa Rosa has begun selling off church properties as it struggles to remain financially afloat while facing more than 260 allegations of clergy sexual abuse, The Mercury News reported. Two small mission churches, Our Lady of Mount Carmel near Cloverdale and St. Francis Church in Hopland, are the first properties approved for sale under the diocese’s ongoing Chapter 11 bankruptcy. Church leaders say more real estate may soon follow. “We’re working with realtors, and in some cases with surveyors,” Bishop Robert Vasa said. “We have three or four other properties in a similar state.” The diocese filed for bankruptcy protection in April 2023 after a flood of lawsuits spanning several decades of alleged abuse. According to court filings, administrative costs linked to the bankruptcy are burning through nearly $345,000 a month, leaving the diocese with less than $3 million in accessible funds by year’s end, what church leaders describe as the “minimum operating reserve” needed to continue functioning. But advocates for survivors argue the financial crisis may be overstated. “If they’re out of money, they need to show me,” said Melanie Sakoda, a Pleasant Hill advocate for survivors of clergy abuse. Church Sales Reflect Financial Pressure The two pending sales represent both practical cost-cutting and symbolic loss. • Our Lady of Mount Carmel (built 1965, 1.3 acres), to be sold for $450,000• St. Francis Church (built 1897), to be sold for $275,000 to a local community group Both properties have been inactive for years due to either deterioration or pandemic closures. The diocese expects more liquidation will be necessary as it negotiates with insurers and survivor creditors. Questions Over Hidden Assets Survivor advocates argue that the diocese’s financial picture is incomplete. SNAP board member Dan McNevin estimates that Santa Rosa-area parishes collectively own 50–60 properties worth anywhere between $500 million and $1 billion. Those assets were not listed in the diocese’s bankruptcy declarations, because title transfers in 2017 moved ownership from the diocese to parishes individually, a common tactic employed across the country before bankruptcy filings. “My question is, why not sell the real estate and rent it back?” McNevin said. “God is the people, not the real estate.” Bishop Vasa insists that the transfers were standard legal practice within Catholic governance. Allegations of Fraudulent Money Transfers Survivors also allege the diocese diverted money to national Catholic organizations to limit what could be recovered in bankruptcy. A July filing claims that between 2019 and 2022, the diocese sent $760,000 across 30 transfers to the U.S. Conference of Catholic Bishops and Catholic Relief Services, at a time when bankruptcy plans were already under discussion. “These are transparent, obvious schemes to get money out of their bank account and shield it from survivors,” McNevin said. Vasa disputes the accusation, calling the collections longstanding charitable practices. “They can call them fraudulent,” he said. “There was nothing fraudulent on the part of the diocese at all.” The court must now determine whether those funds should be returned to help cover compensation owed to abuse survivors. Earlier this month, a bankruptcy judge allowed some lawsuits against the Santa Rosa Diocese to proceed to trial, giving survivors a path to justice and exposing potential church liability.Are You A Survivor Of Clergy Sexual Abuse? Learn your legal rights with our Catholic Church Sexual Abuse Lawsuit Guide. You can also initiate a free legal case review by our intake team, who may be able to connect you with an attorney that specializes in these cases. When you are ready, complete the secure, confidential form below.

Santa Rosa Diocese Bankruptcy

Bay Area Catholic Diocese Unloads Properties Amid Growing Bankruptcy and Sexual Abuse Claims

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Santa Rosa Diocese Bankruptcy

Bay Area Catholic Diocese Unloads Properties Amid Growing Bankruptcy and Sexual Abuse Claims

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