Faith-based institutions are among the country’s largest landowners—and increasingly, vital allies in solving the affordable housing crisis. The YIGBY (Yes in God’s Backyard) movement is growing and spawning positive actions such as new laws being proposed in states like New York, Virginia and Hawaii and adopted in cities like Atlanta and San Antonio, among other jurisdictions.
These new laws permit religious institutions to fast-track existing projects. Housing advocates like that the new laws invite congregations to look at their existing space, parking lots, air rights, etc., and consider how providing housing can benefit their congregations and the greater community.
But owning land doesn’t automatically make a religious organization a ready partner. Here are six key indicators that a partnership will yield strong, sustainable housing.
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1. A clear understanding of property value and zoning
Before entering into any development deal, both parties must engage in thorough due diligence—starting with an independent appraisal and zoning review. Religious institutions need to understand the full value of their land, including potential air rights or community space options. Developers should also retain experienced counsel to assess what can and should be built.
2. An experienced, mission-aligned team
The most successful YIGBY projects rely on a coalition of experts: development consultants, legal and tax advisors, community lenders and builders who understand both real estate and the values of the faith partner. These partnerships are growing—in 2024, more than 1,800 units of faith-based housing were developed in the Mid-Atlantic region alone, with 2,200 more in the pipeline.
In Houston, NHPF recently developed more than 300 units of housing with faith-based partners, while in Chicago, partnering with The People’s Community Development Association of Chicago for the second time, NHPF will bring 50 units of affordable housing to East Garfield Park. Funded by 9 percent Low-Income Housing Tax Credits awarded in 2023, this mixed-use project builds on a longstanding partnership focused on revitalizing neighborhoods through high-quality, affordable homes.
3. Access to public-private financing tools
Financing innovation is essential. A 2024 Federal Reserve Bank of Atlanta report found that public-private partnerships can reduce capital costs by as much as 25 percent. Today’s faith-based projects benefit from a range of options: equity crowdfunding, tokenized ownership, social impact bonds and state-supported programs like Enterprise Community Partners’ Faith-Based Development Initiative.
4. Broad stakeholder buy-in
Successful development requires more than bricks and mortar—it needs support from congregants, community boards and denominational leadership. Early, honest communication about housing lotteries, construction impacts and neighborhood change is crucial to building trust and buy-in.
5. Awareness of legal and tax complexities
From tax compliance to LIHTC eligibility, developers and faith leaders must stay informed about shifting regulations. Proper oversight helps avoid costly delays or disqualifications.
6. A flexible, shared vision
While many projects begin with a single goal—affordable units, expanded church space or a hybrid development—successful outcomes often emerge through collaboration. Some institutions opt to sell their land, while others co-develop multigenerational housing or mixed-use spaces. With the average U.S. housing unit now 40 years old, many congregations are seizing the opportunity to “recycle” outdated buildings into energy-efficient, modern homes that meet today’s needs.
“It’s radical common sense,” said David Bowers of Enterprise Community Partners. “Public-private partnerships bring together mission-aligned institutions with the expertise or capital to get things built. The result is affordable housing that meets community needs.”
Faith-based development isn’t just an act of service—it’s a strategy for resilience and renewal. When done right, these partnerships transform underutilized land into thriving communities that reflect both mission and market.
Veronica Gonzalez is assistant vice president at The NHP Foundation.
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