Renting school buildings to religious organizations: legal?

This past week Hawaii’s New Hope Churches agreed to settle a lawsuit originally filed in March 2013 by citizen activists Mitchell Kahle and Holly Huber. The “qui tam whistle-blower” lawsuit argues that these New Hope churches misrepresented time spent renting public school facilities costing the school millions in lost revenue. In an August press release, the plaintiffs claim that there has in fact been “widespread abuse and outright fraud perpetrated by churches often with the explicit approval or knowledge of school principals and/or their designees.”

The New Hope Churches make up only 3 of the 5 original defendants. Along with New Hope, the Calvary Chapel of Central Oahu and One Love Ministries were also accused of falsifying records to avoid paying rental and utility fees. The plaintiffs estimate that New Hope Oahu alone owes 3.2 million for the rental of Farrington High School.