So, I followed this help link https://www.xwiki.org/xwiki/bin/view/Documentation/UserGuide/Features/Forms
And I was able to create the FAQ app. As I understand, any ap created by that method can be configured to be used in specific spaces.
So I can in theory create the app inside my Policies Docs space.
I was also able to create a template.
What I am not very sure how to do is how to use both together.
So when creating a new document, I fill forms whose content will be used in the text document.
Example, when creating a new Policy, selecting the Department from a list, and then the Department code being part of the document name.