Churches Converting Vacant Lots into Cost-Effective Housing Developments

A vacant grassy parcel situated across the street from Trinity East United Methodist Church remained largely unoccupied throughout most periods.

Historically, the property had been intermittently utilized for outdoor activities, food distribution services, and community gatherings spanning multiple decades. Upon her appointment as pastor more than eleven years prior, Rev. Marilyn White discovered that the Houston congregation had previously contemplated converting the property into residential housing; however, this initiative had not yet materialized.

White observed significant transformations within the Trinity East neighborhood over the preceding decade. Residential property values escalated substantially, and established community members faced increasing displacement.

The United States currently experiences its most constrained housing affordability crisis in at least one generation, substantially attributable to an insufficient housing supply. Numerous religious institutions are examining their own properties, underutilized parking facilities, undeveloped land parcels, and deteriorating structures as prospective locations for developing affordable residential units available for lease or purchase.

For White, Trinity East’s vacant lot represents a meaningful opportunity to generate positive community impact. The Houston congregation exemplifies a movement characterized by certain observers as “YIGBY”—Yes In God’s Back Yard—a derivative concept emerging from the broader pro-housing YIMBY initiative, (“Yes In My Back Yard”).

“I went out and started attending meetings of nonprofits and community meetings and just listening,” White said. “The number one need everywhere I went: We need affordable housing, and we need it quickly.”

Certain religious institutions regard this initiative as a charitable or nonprofit undertaking. For others, it represents an essential matter of organizational sustainability.

According to Mark Elsdon, a Presbyterian minister and professional developer specializing in religious facilities, the fundamental reality is that church attendance and participation in houses of worship have declined compared to historical levels. He notes that numerous religious institutions may require alternative revenue streams as diminishing membership results in reduced financial resources.

However, the development of residential properties in the U.S., particularly housing designated as affordable, constitutes a protracted and costly undertaking. Religious leaders who possess limited or negligible expertise in real estate development or financial management must navigate an intricate regulatory framework, encompassing the acquisition of financing, obtaining necessary approvals, and addressing objections from neighboring communities and, in certain instances, from members of their own congregations.

“You have to have so many ingredients for that to work. It has to be a site that works, it has to be financially feasible, financing has to be obtained, all the zoning has to be obtained,” Elsdon said.

Building Challenges & Pushing Forward

According to Elsdon, a substantial quantity of underutilized religious property exists that could meaningfully address the nation’s shortage of affordable housing. However, he noted that presently, only a limited proportion of ecclesiastical land is being successfully converted into housing developments due to the substantial obstacles inherent in affordable housing construction.

Pastor Joseph Daniels of Emory United Methodist Church in Washington, DC, encountered a prolonged dispute with the National Park Service and the DC Historic Preservation Board during the initial phases of developing an affordable housing initiative on his congregation’s property. Following a petition submitted by a private resident, the National Park Service unexpectedly conferred historic landmark status upon the church’s land, according to Daniels.

Historic designations can serve as instruments for local residents to obstruct or postpone development initiatives, thereby introducing an additional impediment to undertakings that are already challenging and costly to initiate.

Following extensive advocacy, the congregation ultimately secured authorization to proceed with construction. Nevertheless, the protracted negotiations resulted in project delays totaling millions of dollars and a minimum of two years, Daniels reported.

The comprehensive development timeline extended across 11 years. The culmination was the creation of 99 units of fully affordable housing, which commenced operations in 2019. Daniels indicated that the church maintains an outstanding obligation of approximately $2.5 million from an initial $3.5 million loan provided by its denomination, which the congregation is systematically repaying as the project advances toward financial sustainability.

At present, certain church members reside within the adjacent apartments, and additional residents have become active participants in the congregation.

“History is extremely important, but when it is used to deny persons the opportunity to help others, particularly on land we own, that was a real challenge,” Daniels said.

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