As congregations across North America grapple with shrinking membership and aging facilities, a new opportunity is emerging: transforming faith-owned land into affordable housing and community-serving spaces. At the 2025 ULI Fall Meeting in San Francisco, panelists in the session “Spiritual Brownfields: Declining Congregations and Opportunities for Housing on Faith-Owned Land” explored how churches and developers are partnering to bring mission-driven housing to underused sacred sites.
Moderator Linda Mandolini, president and CEO of Eden Housing, opened the session by describing how California’s recent “Yes-In-God’s-Backyard” law is encouraging faith-based housing development. The law allows churches to rezone for housing without undergoing a full California Environmental Quality Act review, streamlining projects that once took years to entitle. “Across the U.S., many congregations are sitting on land they’re no longer using to its fullest,” she said. “They’re looking for mission-centered ways to serve their communities through housing.”
Technical assistant for faith leaders Evita Chávez of LISC Bay Area, described how the organization’s Faith and Housing Capacity Building Program is helping congregations move from curiosity to construction through technical assistance, coaching, and financial support. Launched in 2019, LISC created the program in response to a growing number of faith leaders who wanted to address California’s housing crisis but didn’t know where to start. The initiative begins with a structured, year-long learning lab that introduces participants to the full predevelopment process—from understanding zoning and entitlements to exploring financing, community engagement, and developer partnerships.
Participants receive individualized guidance from development coaches, architects, and financial advisors to help them determine what is feasible on their land and what steps are needed to move forward. For those ready to take the next step, the program provides one-on-one “intensive technical assistance,” including site analyses, financial feasibility studies, and connections to experienced development partners. LISC also offers small grants and forgivable loans to help cover predevelopment expenses.
Since its launch, the program has supported 55 faith and community-based organizations across all nine Bay Area counties, advancing more than 1,300 affordable homes through the pipeline and providing over $3 million in direct project support. Chávez noted that about three-quarters of participating organizations decide to move forward with housing development after completing the program. “We meet organizations where they are,” she said. “Our role is to help them explore what’s possible, build confidence in the process, and make informed decisions that align with their mission and capacity.”
Mission financing, stewardship Patrick Duggan, executive director of the United Church of Christ Church Building & Loan Fund, offered a broader historical and institutional perspective on how faith-based organizations are reimagining their property for community benefit. The Church Building & Loan Fund is one of the oldest faith-based financing entities in the United States—founded over 170 years ago—and has supported more than 10,000 church-related building and redevelopment projects across 41 states.
Historically focused on constructing and financing houses of worship, the fund has evolved to help congregations adapt their facilities and land to meet contemporary needs through mixed-use, affordable housing, and community-serving developments.
In addition to providing capital, the fund operates as a full-service development partner through its Partners in Vision program, guiding churches “from concept to completion.” This includes portfolio assessments, feasibility analysis, mission-based redevelopment strategies, and connections to architects, developers, and philanthropic partners. The fund trains 800 to 1,000 church leaders each year through workshops and webinars on real estate stewardship, mission alignment, and asset management—equipping faith leaders to navigate the complexities of development while maintaining their congregation’s core purpose.
Duggan emphasized that effective partnerships require both financial literacy and mission clarity. For example, since many foundations cannot directly fund religious institutions, many churches interested in developing surplus property create community development corporations to attract philanthropic and public investment. He urged congregations to treat their property as a ministry asset rather than a disposable resource, encouraging long-term ground leases over outright sales whenever possible.
“For developers, it’s about building and profit. For churches, it’s about sustaining mission,” he said. “Property isn’t just land—it’s a tool for ministry and community renewal.”
He also noted that not all churches will be ready or able to pursue redevelopment immediately. The fund’s role, he explained, is to meet congregations where they are—sometimes offering loans, sometimes coaching, and sometimes simply helping them discern their mission before proceeding. “People think of church decline as loss,” Duggan observed. “We see it as transformation—a chance to repurpose sacred spaces for the good of the community.”
A case study in partnership Matt Nicholson, president of The Clear Blue Company, offered a detailed case study of the Northview development, a faith-based housing partnership now under construction in north Nashville, Tennessee. The project is a collaboration between The Clear Blue Company, Urban Campus & Core, and Born Again Church, a long-standing congregation with a 24-acre campus in a fast-changing neighborhood.
The Northview project will deliver 254 affordable apartments for seniors aged 55 and older, developed under the federal 4 percent Low-Income Housing Tax Credit program and supported by the Amazon Housing Equity Fund, a key equity partner. Situated on six acres of the church’s land, the community is designed to provide high-quality, age-friendly housing with on-site amenities and sweeping views of downtown Nashville. Construction began in 2024 and is expected to be completed in 2026.
Nicholson explained that this project represents a valuable model of developer-congregation, blending business discipline with mission alignment. From the outset, Born Again Church wanted to retain ownership of its land and ensure that any redevelopment reinforced its spiritual and community mission. To achieve that, the team structured a long-term ground lease—a model that allowed the church to remain the landowner while enabling the developer to finance and construct the housing. The lease terms were tailored to meet both parties’ needs, including a front-loaded payment schedule that gave the church immediate capital to reinvest in other campus improvements.
The process was not without challenges. Just days before closing, church leaders grew hesitant about the pace of the transaction, prompting what Nicholson described as a “leap of faith” on both sides. “Affordable housing is already complicated,” he said. “Add a faith-based partner, and you need even more creativity—and patience.” What followed were four months of weekly meetings between the development team and church leadership—each beginning and ending in prayer—that deepened mutual trust and led to a shared vision for the entire campus.
The project also required careful navigation of Nashville’s zoning and land-use laws. Initially permitted under the Religious Land Use and Institutionalized Persons Act, the team ultimately pursued a full rezoning to secure long-term entitlement certainty.
At a celebratory groundbreaking held in early 2025, Born Again Church’s sanctuary became the setting for a joint worship and community ceremony. City leaders, including Nashville’s mayor, joined congregants to mark the milestone—so moved by the event that the mayor canceled other obligations to stay for the full celebration. For Nicholson, this moment symbolized what faith-based development can achieve at its best: a project that delivers deeply affordable housing, honors a congregation’s legacy, and strengthens a neighborhood’s social fabric.
“This kind of partnership requires time, humility, and a lot of listening,” Nicholson reflected. “But when churches and developers find alignment, they can create housing that reflects both faith and community purpose.”
Aligning faith, mission, and development The panel closed with reflections on governance and culture. Church approval processes vary widely—some congregational, others hierarchical, even requiring Vatican sign-off. Cultural competency, Chávez noted, is vital: “These are sacred spaces tied to people’s lives. Decision-making can’t be rushed.”
Mandolini noted: “You can’t rush discernment. But when churches and developers get it right, the results can be transformational—for both the congregation and the community.”
