Was I misinformed or misunderstand that individual congregations are no
longer required to raise their own funds for work on their own KHs? If
they are still to raise their own funds, how is any money above $5K
banked locally?
"Theocratic direction" now is that the LDC makes ALL decisions about if / when a new Kingdom Hall is needed.
Local congregations have virtually no influence. It is decided by the LDC and no one else (well, probably the CO has some input regarding the "need").
If the LDC says "No", the local congregation is stuck. Doesn't matter if they have raised a million dollars; if they try to build a KH without LDC input they will be disciplined for "not following theoratic direction".
If the LDC determines that a new KH is warranted, then yes the money is funneled from Warwick thru the LDC. LDC will pick the size, location, design, etc. Local congregation members can pick (out of a choice of probably 3 or 4) seat colors, carpet colors, etc.
By the way, there was another thread here from a month or so ago, the LDC approved the construction of 6 (yes, only 6) new KHs in all of the USA in all of 2016.
There was another thread a month or so before that, in which the head of the US LDC made remarks at an assembly that very very few KHs would be built in the USA in the foreseeable future.
Which of course raises all sorts of questions, about "what are they doing with ll those billions of dollars they have snagged over the past 2-3 years", but that is a topic for a different thread.