Faith-Based Affordable Housing Research

  1. I. Executive Summary
  2. II. Introduction: The Growing Role of Faith-Based Organizations in Affordable Housing
  3. III. Leading Faith-Based Organizations and Initiatives
    1. Table: Major Faith-Based Housing Organizations and Their Scale/Focus
  4. IV. Key Supporting Associations and Partnerships
    1. Table: Key Supporting Organizations and Their Contributions
  5. V. Funding Sources and Innovative Models
  6. VI. Best Practices in Faith-Based Affordable Housing Development
  7. VII. Conclusions and Recommendations
    1. Works cited

I. Executive Summary

Faith-based organizations (FBOs) are increasingly recognized as pivotal actors in addressing the persistent affordable housing crisis across the United States. Their unique position stems from a deep-rooted mission to serve vulnerable populations, substantial land holdings, and established community trust. This report examines the landscape of faith-based affordable housing, identifying major organizations, critical supporting associations, diverse funding mechanisms, and proven best practices.

Leading organizations, such as Catholic Charities, demonstrate the potential for large-scale impact, managing tens of thousands of affordable housing units nationwide. Concurrently, innovative approaches like incremental development and the “Yes In God’s Backyard” (YIGBY) legislative movement are expanding opportunities for smaller FBOs to contribute effectively. Funding for these initiatives is multifaceted, drawing from public grants, private philanthropy, and impact investments. A recurring theme across successful projects is the indispensable role of technical assistance and strategic partnerships in building the capacity of FBOs. Best practices underscore the importance of meticulous planning, early and sustained community engagement, and a commitment to long-term project sustainability, often incorporating comprehensive resident services and environmentally conscious design.

II. Introduction: The Growing Role of Faith-Based Organizations in Affordable Housing

The United States continues to grapple with a severe and compounding affordable housing crisis, characterized by national housing supply shortages, escalating costs, and restrictive zoning regulations.1 Traditional solutions, including subsidies and tax incentives, have struggled to keep pace with the overwhelming demand.3 In this challenging environment, faith-based organizations have emerged as crucial contributors, leveraging their distinct attributes to provide desperately needed housing solutions.

The unique capabilities and motivations of FBOs position them as natural partners in this endeavor. Their engagement is fundamentally driven by a profound belief in justice and an unwavering commitment to the communities they serve.9 This translates into a practical application of their spiritual mandates, actively working to uplift and care for the most vulnerable members of society.10 Beyond their moral imperative, FBOs possess a significant tangible asset: land. They are major institutional landowners across the U.S., controlling vast amounts of underutilized urban and suburban property. For instance, reports indicate that FBOs own an estimated 2.6 million acres nationally, with the potential to yield 700,000 housing units.4 In California alone, approximately 38,800 acres of religious institution land could be developed for housing 1, and in New York City, FBOs hold over 84 million square feet of land, with 5.5 million square feet consisting of vacant or parking lots that could produce around 22,000 units.14 This extensive land portfolio, often located in prime urban areas, represents a substantial, untapped resource for housing development.

Furthermore, FBOs benefit from deep community trust and integration. As established local institutions, their projects are often met with less community opposition compared to those initiated by external developers.3 Many FBOs already serve as community anchors, providing a wide array of social services such as food banks, childcare, and job training.3 This existing social infrastructure allows them to offer not just housing, but also a supportive network that enhances resident stability and well-being.

The approach to faith-based housing development often falls into two broad categories: large-scale and incremental. Large-scale developments, while capable of delivering many units, typically involve extensive timelines, often taking half a dozen years or more for permits and ground-breaking, and require significant subsidies due to high per-unit costs (e.g., an $84 million project in Northern Virginia yielded 144 units at nearly $600,000 per unit).16 In contrast, incremental development emphasizes smaller, locally-driven projects, such as converting unused church buildings into apartments (e.g., Caldwell Presbyterian’s 21 units) or building tiny homes (e.g., Sacred Settlement’s $35,000 units).16 This model is generally more cost-effective, faster to implement, and inherently more responsive to local community needs, aligning well with the values of localism and civic pride often espoused by faith communities.16

The increasing focus on FBOs as a solution to the housing crisis extends beyond merely recognizing their land assets. It acknowledges their inherent social capital and deep community integration as critical advantages that can mitigate common development challenges, such as local opposition and the need for comprehensive resident support. The existing community trust and service infrastructure of FBOs directly reduce the social and political costs often associated with new development, by pre-empting neighborhood resistance and embedding housing within a pre-existing, supportive network. This makes their projects more viable and impactful than purely commercial ventures, leading to more positive community outcomes. This perspective suggests that policies and funding mechanisms should not only account for land and construction costs but also explicitly value and incentivize the non-financial contributions of FBOs, such as their social capital and existing service delivery capabilities. This reframes FBOs not just as potential landowners, but as comprehensive community anchors whose involvement transforms housing provision into a broader, more integrated community development strategy.

III. Leading Faith-Based Organizations and Initiatives

Several organizations stand out for their significant contributions to faith-based affordable housing in the United States, demonstrating diverse models of engagement from direct development to capacity building and strategic partnerships.

Catholic Charities USA (CCUSA) is one of the nation’s largest providers of affordable housing. Through its extensive network of agencies, CCUSA manages over 38,000 permanent units, serving a wide array of vulnerable populations including families, seniors, veterans, and individuals experiencing chronic homelessness. Beyond permanent housing, CCUSA also provides crucial temporary and emergency shelter options across the country.11 Their diverse housing programs encompass affordable housing project development, focusing on both new construction and the rehabilitation of existing properties. A notable initiative is the Healthy Housing Initiative (HHI), which secures permanent, service-enriched affordable housing to reduce chronic homelessness, moving individuals beyond shelters into stable homes with integrated social support.17 A prime example of their regional impact is Catholic Charities Brooklyn and Queens (CCBQ). As one of the country’s largest faith-based affordable housing providers, CCBQ offers over 4,500 low-income housing units through its Catholic Charities Progress of Peoples (CCPOP) Development Corporation.10 Since its establishment in 1975, CCPOP has completed over 4,330 units, specifically targeting low-income older adults (2,186 units in 23 buildings), families (1,068 units in 5 buildings), formerly homeless individuals (433 units), and veterans (over 60 units), demonstrating a comprehensive approach to local housing needs.10

The Local Initiatives Support Corporation (LISC), a prominent Community Development Financial Institution (CDFI), plays a crucial role in supporting FBOs. LISC collaborated with the U.S. Department of Housing and Urban Development (HUD) to develop an expansive toolkit designed to help FBOs expand affordable housing in their communities. This toolkit outlines factors for successful projects, stakeholder roles, policy considerations, and financing strategies.1 LISC’s Bay Area Faith and Housing Program exemplifies their capacity-building efforts. Since its launch in 2019, this free, year-long program has supported over 40 FBOs, resulting in 68 housing units completed or under construction and more than 1,300 units in predevelopment. The program provides essential one-on-one coaching, training, early grants, and forgivable loans to equip FBOs with the tools needed for housing development.9

Enterprise Community Partners also significantly contributes through its Enterprise Faith-Based Development Initiative (FBDI). This initiative empowers houses of worship with the necessary knowledge, tools, grants, and capital to transform underutilized land into affordable homes and community facilities.21 FBDI has a demonstrated impact, having awarded $6.3 million in grants and mobilized $211 million in capital, leading to the creation or preservation of over 1,800 affordable homes nationwide.21

Habitat for Humanity is widely known for its mission to build homes, communities, and hope by “seeking to put God’s love into action”.23 Local chapters, such as Habitat for Humanity Wake County, organize Interfaith Coalitions that unite congregations from diverse faiths. These coalitions foster stronger relationships while collectively engaging in building, preserving, and advocating for affordable housing.24 Habitat for Humanity also employs the Community Land Trust (CLT) model, as seen with The Good Steward Community Land Trust. In this model, the CLT retains perpetual ownership of the land, ensuring long-term affordability and structural integrity of the homes, even as individual homeowners own the structures built upon the leased land.23

Beyond these established entities, emerging organizations are rapidly scaling their efforts. Logos Faith Development is a mission-driven real estate development firm dedicated to converting underutilized church land into community-centered affordable housing. Logos boasts a development pipeline valued at $525 million, encompassing over 2,000 units across more than 240 FBOs.25 The firm recently secured an $11.1 million strategic capital commitment from a private family foundation, including an equity investment and a revolving line of credit, designed to accelerate project delivery and expand its reach.25 Similarly, The Faith-Based Housing Initiative (Substack) is actively working to cultivate a broad national movement for incremental faith-based housing. They connect houses of worship with experts in incremental development, offering structured curricula, guest speakers, film nights, and design workshops to guide churches through small-scale, locally-driven development.16

The significant scale of housing provision by organizations like Catholic Charities 10 and the rapid growth of specialized development firms such as Logos Faith Development 25 indicate a maturing faith-based housing sector. This suggests a bifurcation in the sector: highly institutionalized FBOs and specialized firms are capable of operating as major developers, executing complex real estate projects either by building substantial internal expertise or by forming robust external partnerships. In contrast, a vast number of smaller FBOs, which often lack inherent real estate development experience 9, increasingly rely on external expert partners and dedicated capacity-building programs to navigate the intricate development processes. The scale achieved by these leading entities is a direct outcome of their ability to professionalize or outsource the development function. For the broader FBO sector to significantly increase its contribution to the national housing supply, the primary focus must be on enabling this professionalization, either through direct capacity building initiatives or by facilitating effective, value-aligned partnerships. This implies a crucial two-tiered strategy for scaling faith-based housing: supporting the continued growth and efficiency of large, established players, while simultaneously investing in the foundational capacity and partnership frameworks for the numerous smaller, less experienced FBOs. This dual approach is essential for maximizing the overall impact of the sector.

Table: Major Faith-Based Housing Organizations and Their Scale/Focus

Organization Name Primary Focus/Approach Geographic Scope Scale of Impact Key Initiatives/Programs
Catholic Charities USA (CCUSA) Direct Development, Housing Services National 38,000+ permanent units; temporary/emergency housing 11 Affordable Housing Project Development, Healthy Housing Initiative 17
Catholic Charities Brooklyn and Queens (CCBQ) Direct Development, Housing Management Local (Brooklyn & Queens, NY) 4,500+ low-income units; 4,330+ units completed by CCPOP 10 Catholic Charities Progress of Peoples (CCPOP) Development Corporation, Catholic Charities Progress of Peoples Management Corp. 10
Local Initiatives Support Corporation (LISC) Technical Assistance, Training, Financing, Partnerships National, Regional (e.g., Bay Area) Invested $32 billion; 506,000+ affordable homes developed (overall).9 Bay Area program: 68 units completed/under construction, 1,300+ in predevelopment.20 HUD-LISC Toolkit, Bay Area Faith and Housing Program 9
Enterprise Community Partners Technical Assistance, Training, Capital, Grants National 1,800+ affordable homes created/preserved; $6.3M grants, $211M capital 21 Enterprise Faith-Based Development Initiative (FBDI) 21
Habitat for Humanity (Local Chapters) Direct Development, Interfaith Coalitions, CLTs Local, Regional Builds homes, communities, and hope 23 Interfaith Coalitions, Community Land Trust (CLT) Model (e.g., The Good Steward CLT) 23
Logos Faith Development Mission-driven Real Estate Development Regional (CA, other key markets) $525M development pipeline; 2,000+ units across 240+ FBOs 25 Transforming underutilized church land into affordable housing, strategic capital commitments 25
The Faith-Based Housing Initiative (Substack) Capacity Building, Incremental Development National (emerging movement) Fostering broad-based movement of incremental housing 16 Structured curriculum, guest speakers, film nights, design workshops 16

IV. Key Supporting Associations and Partnerships

The success of faith-based affordable housing initiatives is significantly bolstered by a robust ecosystem of supporting associations and strategic partnerships across governmental, non-profit, and interfaith sectors.

Government Agencies play a critical role in facilitating and funding faith-based housing. The U.S. Department of Housing and Urban Development (HUD), through its Center for Faith-Based and Neighborhood Partnerships, actively collaborates with organizations like LISC to provide comprehensive toolkits and guidance specifically tailored for FBOs engaged in affordable housing development.1 HUD also offers various competitive funding opportunities, known as Notices of Funding Opportunities (NOFOs), which are relevant to affordable housing developers, including FBOs.26

At the state and local government levels, there is a growing trend towards implementing supportive legislation and initiatives. The “Yes In God’s Backyard” (YIGBY) movement is a prime example, advocating for legal reforms to dismantle restrictive zoning laws that historically impede affordable housing development on religious property.5 This movement has seen tangible legislative successes. California’s SB 4, the “Affordable Housing on Faith and Higher Education Lands Act of 2023,” is a groundbreaking law enacted in 2023. It permits 100% affordable housing projects on FBO properties “by right,” effectively bypassing discretionary special zoning requirements, provided these projects adhere to state affordability standards for 55 years for rentals and 45 years for owned homes.5 Similarly, Washington’s HB 1377 extends a density bonus for 100% affordable housing built on land owned by religious institutions.5 In New York, the proposed Faith-Based Affordable Housing Act (FBAHA) (S3397/A3647) is currently under legislative consideration. This bill aims to remove barriers and allow residential buildings for affordable housing on religious land in urban areas, potentially overriding local zoning rules and significantly accelerating project timelines. It includes specific density limits and affordability requirements, such as setting aside 25% of units for households earning 60% Area Median Income (AMI) in New York City.4

Beyond state legislation, numerous cities are implementing their own supportive initiatives. Cities like Atlanta and San Antonio provide direct technical assistance to FBOs interested in housing development.14 Detroit and Boston have offered development financing to help FBOs repurpose their properties.14 Atlanta’s Mayor’s Faith-based Development Initiative specifically aims to cultivate a pipeline of community-based organizations, with a goal of spurring 2,000 units by connecting FBOs with resources, technical workshops, peer mentoring, and pre-development capital.29 The New York State Office of Faith and Non-Profit Development Services also provides valuable grant application assistance and resources to FBOs.30

Community Development Financial Institutions (CDFIs) are mission-driven lenders that bridge financing gaps for communities traditionally underserved by mainstream finance. Organizations like LISC exemplify how CDFIs have developed advanced technical assistance programs specifically focused on faith-based development. These programs help FBOs navigate the complexities of real estate development in an informed and equitable manner, providing crucial support where traditional financial institutions may not typically reach.1

Non-profit Housing Developers are indispensable partners for FBOs, many of whom lack the specialized expertise required for real estate development.12 Strategic partnerships with experienced non-profit developers are common and mutually beneficial. Examples include collaborations with members of the Housing Development Consortium like Bellwether Housing, Compass Housing Alliance, and Imagine Housing, many of which originated from church initiatives.22 National CORE also partners with various denominations to develop affordable housing.31 These collaborations enable FBOs to leverage their land assets—often through ground leases or sales at below-market value—allowing developers to construct critically needed affordable housing.22 In return, congregations can fulfill their mission, access professional development expertise, and establish a revenue stream to support their core ministries and ensure their own financial sustainability.31

Interfaith Coalitions and Networks foster collaboration and shared learning among diverse faith traditions. The Interfaith Housing Alliance (IHA), founded in 1990, develops affordable housing and provides social services in Maryland and Pennsylvania. They emphasize strong partnerships across faith communities, public, and private sectors to tackle housing challenges.33 Similarly, the Interfaith Coalition within Habitat for Humanity Wake County actively unites congregations from different faiths to collectively build, preserve, and advocate for affordable housing.24 The IFCA Housing Network in New York is dedicated to providing and managing quality affordable housing, operating on the principle that a stable home is fundamental for a healthy life.34

The proliferation of state-level “YIGBY” laws 5 and city-level initiatives 14 represents a critical policy evolution. This signifies a shift from merely acknowledging the potential of FBOs to actively legislating for its realization. This evolution indicates a growing understanding among policymakers that regulatory barriers, rather than solely a lack of funding, are significant impediments to increasing affordable housing supply. These legislative and municipal actions are a direct response to the identified regulatory and capacity challenges faced by FBOs. By streamlining zoning, providing “by-right” development permissions, and offering targeted technical assistance, governments are actively removing systemic barriers, thereby enabling FBOs to more efficiently convert their land assets into affordable housing. This represents a crucial advancement beyond simply providing grants. This trend suggests a maturing policy environment that recognizes the unique nature of FBOs and is willing to adapt regulations to unlock their potential. It also implies that continued advocacy for further zoning reform and dedicated FBO support programs at all levels of government will be instrumental in accelerating the pace of faith-based affordable housing development nationwide.

Table: Key Supporting Organizations and Their Contributions

Organization Type Specific Organization Name Primary Contribution Examples of Impact/Programs
Government Agency (Federal) U.S. Department of Housing and Urban Development (HUD) Policy Guidance, Toolkits, Competitive Funding Center for Faith-Based and Neighborhood Partnerships, NOFOs (e.g., CDBG, HOME, CoC) 1
Government Agency (State) California State Legislature Zoning Reform (YIGBY) SB 4 (“Affordable Housing on Faith and Higher Education Lands Act of 2023”) 5
Government Agency (State) Washington State Legislature Zoning Reform (YIGBY) HB 1377 (density bonus) 5
Government Agency (State) New York State Legislature Proposed Zoning Reform Faith-Based Affordable Housing Act (FBAHA) 4
Government Agency (City) City of Atlanta Technical Assistance, Resource Connection Mayor’s Faith-based Development Initiative (pipeline for 2,000 units, workshops, mentoring, capital) 14
Government Agency (State) NY State Office of Faith and Non-Profit Development Services Grant Assistance, Resources Guidebooks, grant application assistance, housing initiatives 30
Community Development Financial Institution (CDFI) Local Initiatives Support Corporation (LISC) Technical Assistance, Financing, Capacity Building HUD-LISC Toolkit, Bay Area Faith and Housing Program (coaching, grants, forgivable loans) 1
Non-profit Housing Developer Enterprise Community Partners Technical Assistance, Training, Capital, Grants Enterprise Faith-Based Development Initiative (FBDI) (1,800+ homes, $211M capital) 21
Non-profit Housing Developer National CORE Direct Development Partnerships Partnerships with Santa Ana United Methodist Church (Legacy Square), Nestor United Methodist Church (Nestor Senior Village), Episcopal Diocese of Los Angeles (Santa Angelina) 31
Interfaith Network Interfaith Housing Alliance (IHA) Affordable Housing Development, Social Services, Partnerships Develops housing in Western/Central MD and Southcentral PA, emphasizes public-private-faith partnerships 33
Interfaith Network Interfaith Coalition (Habitat for Humanity Wake County) Collaborative Building, Advocacy Brings together diverse congregations to build and advocate for affordable housing 24
Interfaith Network IFCA Housing Network Affordable Housing Provision & Management Provides and manages quality affordable housing in Ossining, NY 34

V. Funding Sources and Innovative Models

Funding for faith-based affordable housing initiatives in the United States is drawn from a diverse array of sources, reflecting both traditional and innovative financial models.

Public Funding remains a cornerstone for affordable housing development. The U.S. Department of Housing and Urban Development (HUD) offers various competitive grants through its Notices of Funding Opportunities (NOFOs). While the specific details of all programs are extensive, HUD’s focus areas include Community Development Block Grants (CDBG), HOME Investment Partnerships, Continuum of Care (CoC) programs, Rural Capacity Building for Community Development and Affordable Housing Grants, and Choice Neighborhoods initiatives.18 These programs provide critical capital for acquisition, rehabilitation, and new construction of affordable housing units.

A primary federal tool for affordable housing finance is the Low-Income Housing Tax Credit (LIHTC) program. This program is crucial for many large-scale affordable housing projects, often combined with state-level LIHTC programs to bridge financing gaps.1 Navigating the complexities of LIHTC is challenging for many FBOs, underscoring the need for experienced partners and technical assistance. Beyond federal programs, state and local governments contribute through direct development financing, as seen in cities like Detroit and Boston.14 States also implement their own funding mechanisms, such as Florida’s Live Local Act, which provides low-interest loans for the production and preservation of multifamily units, and New York’s tax incentives for new multifamily housing.8

Private and Philanthropic Funding sources are increasingly vital, often providing flexible capital and supporting early-stage development. Private Foundations are significant contributors, with examples such as a private family foundation committing $11.1 million in equity and a revolving line of credit to Logos Faith Development, a firm specializing in converting church land into affordable housing.25 Broader philanthropic support for community development and social services, including affordable housing, comes from entities like the Ford Foundation, the Catholic Campaign for Human Development, various Jewish Federations, the Robert Wood Johnson Foundation, the United Methodist Health Ministry Fund, the Catholic Health Association, and the Jewish Healthcare Foundation.36 These grants often align with the FBOs’ mission and values, supporting a range of activities from education and youth development to health and wellness programs alongside housing initiatives.

Impact Investing represents a growing trend where investments are purposefully made to achieve social and environmental benefits alongside financial returns.38 This model can blend charitable funds with investment capital to support larger or higher-risk projects that might otherwise be financially unviable.38 The Baltimore Community Foundation, for instance, made a $1 million impact investment to support Affordable Homes & Communities (AHC), a non-profit affordable housing leader, demonstrating how such investments can fund predevelopment costs and revitalize neighborhoods.39 Community Foundations are also developing flexible financing funds. The Community Foundation for Greater Atlanta (CFGA) created a $100 million fund in 2023, which has committed funds for 4,500 affordable homes. This fund can act as a mortgage lender, provider of gap financing, and an equity investor, adapting to the specific needs of non-profit housing developers.40

Several Innovative Financial Models are being utilized to enhance the long-term sustainability and accessibility of faith-based affordable housing. Community Land Trusts (CLTs) are non-profit organizations that acquire and permanently own land, leasing it to homeowners. This model ensures that housing remains affordable for future generations by removing the land cost from subsequent sales, as exemplified by Habitat for Humanity’s use of CLTs.23 Ground Leases are another common strategy where FBOs retain long-term ownership of their land while leasing it to a developer for a specified period. This arrangement provides a steady revenue stream for the FBO, supports their mission, and allows for the development of affordable housing without divesting the underlying asset.32 Other emerging models include the exploration of Asset-Backed Securities (ABS) financing for public rental housing construction 44, and crowdfunding, which mobilizes smaller contributions from multiple investors for affordable housing projects.42

The shift towards diverse funding models, including impact investing, Community Land Trusts, and ground leases, reflects a recognition that traditional public subsidies alone are often insufficient to meet the scale of the affordable housing crisis. This evolution in financing also indicates a growing sophistication in how FBOs and their partners structure deals. By leveraging non-traditional capital sources and innovative ownership structures, these initiatives can ensure long-term affordability and financial sustainability for projects, moving beyond one-time grants to create enduring community assets. This approach allows FBOs to tap into broader capital markets while maintaining their mission-driven objectives and addressing the complex financial challenges of affordable housing development.

VI. Best Practices in Faith-Based Affordable Housing Development

Successful faith-based affordable housing initiatives adhere to a set of best practices that span strategic planning, partnership development, community engagement, capacity building, and long-term sustainability. These practices ensure that projects are not only built but also effectively managed and integrated into the community for lasting impact.

Strategic Planning and Discernment form the foundational phase of any project. FBOs must clearly define their mission and objectives for engaging in housing development.45 This involves internal discernment, listening to the congregation’s desires, and determining whether the aim is to sell property, develop service-enriched housing, or incorporate community centers.45 A crucial early step is obtaining an accurate valuation of the property and a thorough zoning analysis. Engaging independent appraisers and zoning experts is essential to determine the land’s value, the maximum buildable square footage, and to understand complex zoning regulations like Floor Area Ratio (FAR).45 Comprehensive feasibility studies are also vital, including real estate market studies, architectural and engineering assessments, land surveys, historic preservation studies (if applicable), and detailed land use and zoning analyses. These studies guide development decisions and help identify the right development partners.46

Effective Partnership and Expertise are paramount, especially given that many FBOs lack inherent real estate development experience.12 Partnering with experienced non-profit housing developers is a critical best practice. Selecting partners who align with the FBO’s values and maintain clear communication is essential for successful collaboration.9 Early engagement with legal counsel specializing in municipal and state real estate is also highly recommended to navigate complex legal frameworks.12 Furthermore, retaining an “owner’s representative”—a professional consultant who can guide the FBO, assist in hiring necessary firms, and advocate on behalf of the congregation—can be invaluable throughout the development process.46

Community Engagement and Policy Advocacy are crucial for project acceptance and broader systemic change. Involving the community from the earliest stages fosters transparency and builds local support, which is vital for overcoming common misconceptions about affordable housing’s impact on crime rates or property values.12 FBOs are uniquely positioned to lead these educational conversations due to their long-standing local presence and trusted relationships.12 Advocating for policy changes, such as “Yes In God’s Backyard” (YIGBY) laws and other zoning reforms, is also a best practice that helps streamline development and provides necessary incentives.4 Leveraging existing assets, such as repurposing underutilized land, vacant buildings, or even parking lots, is an efficient way to increase housing supply without requiring new land acquisition.3

Capacity Building and Technical Assistance are fundamental for empowering FBOs to undertake complex development projects. Accessing specialized training and coaching programs, such as LISC’s Bay Area Faith and Housing Program or Enterprise Community Partners’ FBDI, provides FBOs with one-on-one guidance, workshops, and comprehensive technical assistance to navigate the development process.9 Utilizing governmental support is also critical. HUD toolkits, along with city-level initiatives like Atlanta’s Faith-based Development Initiative and the New York State Office of Faith and Non-Profit Development Services, offer invaluable technical assistance, pre-development capital, and opportunities for peer mentoring, helping FBOs overcome development hurdles.1

For Long-Term Sustainability and Resident Services, successful projects integrate comprehensive support systems. Affordable housing projects developed by FBOs often include built-in services like job assistance, childcare, and social connections, which are natural extensions of their existing outreach efforts.3 Offering programs such as parenting classes, job readiness training, and continuing food distribution transforms housing into more than just shelter, fostering stability, dignity, and community connection for residents.12 A commitment to long-term investment in resident services is essential, requiring dedicated planning and funding, often leveraging technology for off-hours access and consistently measuring impact to ensure program effectiveness.48 Furthermore, incorporating energy efficiency and sustainable design principles, such as green technologies, reduces utility bills for residents and improves health outcomes, contributing significantly to the financial viability and environmental responsibility of the projects over time.8

The comprehensive nature of these best practices, from early discernment and meticulous planning to long-term resident services and sustainable design, highlights that successful faith-based housing is not merely a construction project but a holistic community development endeavor. This suggests that a siloed approach to development, focusing only on building units, is insufficient. Instead, it requires integrated planning that considers the social, economic, and environmental dimensions of housing, coupled with a sustained commitment to supporting residents and maintaining the property over decades. This integrated approach ensures that the housing provided is not just affordable but also contributes to the overall well-being and resilience of the community.

VII. Conclusions and Recommendations

Faith-based organizations represent a powerful, yet often underutilized, force in addressing the United States’ affordable housing crisis. Their unique combination of mission-driven commitment, substantial land assets, and deep community trust positions them as indispensable partners in creating and sustaining affordable housing solutions. The analysis reveals a maturing sector, with large FBOs operating as significant developers and a growing ecosystem of supporting associations and innovative financing models enabling broader participation.

The increasing adoption of “Yes In God’s Backyard” (YIGBY) legislation at state and local levels signifies a critical policy evolution, moving beyond mere acknowledgment of FBO potential to actively dismantling regulatory barriers that have historically stifled development. This legislative momentum, coupled with the proliferation of technical assistance programs from CDFIs and governmental bodies, is crucial for unlocking the vast potential of FBO-owned land.

To further harness the capacity of FBOs and accelerate affordable housing production, the following recommendations are put forth:

  1. Expand and Standardize Policy Reforms: Policymakers at all levels of government should continue to enact and refine “by-right” zoning laws and density bonuses for affordable housing on FBO-owned land. Standardization of these reforms across jurisdictions, while allowing for local adaptations, would reduce complexity and accelerate development timelines.
  2. Bolster Technical Assistance and Capacity Building: Increased funding and programmatic support are needed for initiatives that provide FBOs with specialized training, one-on-one coaching, and access to expert consultants. This is particularly vital for smaller congregations lacking real estate development expertise, enabling them to navigate the complex phases from discernment to operations.
  3. Promote Diverse and Innovative Funding Models: Governments, philanthropies, and financial institutions should actively encourage and invest in innovative financing mechanisms such as Community Land Trusts, ground leases, and impact investing funds. These models offer pathways to leverage non-traditional capital, ensure long-term affordability, and provide FBOs with sustainable revenue streams.
  4. Foster Strategic Partnerships: FBOs should be actively encouraged and facilitated in forming equitable joint ventures with experienced non-profit housing developers. These partnerships are critical for sharing expertise, mitigating risks, and efficiently deploying resources to achieve mission-aligned housing outcomes.
  5. Emphasize Holistic Community Development: Affordable housing initiatives should be viewed as comprehensive community development projects, integrating resident services (e.g., job training, childcare, health support) and sustainable design principles. This holistic approach leverages the FBOs’ existing community integration, enhances resident well-being, and ensures the long-term viability and positive impact of the housing.

By strategically investing in policy reform, capacity building, diversified funding, and collaborative partnerships, the United States can significantly expand its affordable housing supply, anchored by the enduring commitment and unique assets of its faith-based communities.

Works cited

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