Redeveloping faith sites into affordable housing

The redevelopment of sites owned by faith-based organizations (FBO) is among the decade's biggest urban redevelopment challenges. Some arise from a nationwide wave of church closings—others represent land owned by congregations that could serve a larger community purpose and generate revenue.

The scale of this challenge is enormous. Public Square reported in 2022 that 100,000 churches could close, and many of them already are. The Terner Center for Housing Innovation at UC Berkeley reports that 38,800 acres controlled by FBOs could be redeveloped into housing in California alone. At ten units per acre, that could yield close to 400,000 housing units—several times the state's current annual production. 

There’s a problem—FBOs must overcome many hurdles before they even get to urban planning. FBOs typically lack any development expertise. But there’s also a track record of FBOs working with affordable housing developers in many parts of the US. Given the health, economic, and social benefits of walkability, good urban design can play a role in this redevelopment. 

A report that came out last year from HUD and the nonprofit affordable housing developer LISC can help. Working with Faith-Based Organizations on Affordable Housing Development is a first step to guiding these groups on redeveloping sites, which often sit at prime urban locations. The report covers financing, entitlement, and many pitfalls faith-based organizations face as they become involved in housing.

“Affordable housing development in partnership with faith-based organizations is complicated but with thoughtful support and partnerships in place, they can provide truly community-rooted housing that benefits the entire community,” the report says.