The first workshop will take place at the Washington View affordable senior housing complex, the former Pierce Brothers Mortuary (Photo – Arch. Meyer & Holler, 1923, by Marina Khrustaleva)
California is officially in the midst of the housing crisis. Home purchase prices are soaring, interest rates are unreasonable, and rent goes up and up every year.
By Marina Khrustaleva
There is a limited supply of residential units, and the State adopts new and new bills to expand the options for building new housing. One of them, SB4, adopted last year, allows religious congregations to partner with developers and build 100% affordable housing on their property. The Pasadena-based non-profit, Making Housing and Community Happen, formed the Congregational Land Committee to help churches navigate this new opportunity. On October 12th, they will host the first workshop of their fall cohort, helping clergy and laity explore possibilities of affordable housing on their land. Philip Burns, Committee chair and Principal of The Arroyo Group, a local urban planning practice, answers our questions:
Phil, why may churches be interested in this unusual opportunity?
Churches and religious congregations may be interested in developing affordable housing on their land because it is something they can do that furthers their mission while also helping stabilize them financially. As Leviticus 25:23 reminds us, “The land is mine” i.e., God’s. Thus churches’ properties are to be used for God’s purposes, but many are not. Many congregations have Sunday School buildings, offices, gyms, parking lots, and the like that have not been used to their full potential in many years. Affordable housing is a way for many churches to build on their mission serving the needy and unhoused in their communities by providing permanent homes.
What are the benefits of the new legislation for congregation members?
Unlike most other landowners, congregations typically had to undergo difficult processes (conditional use permits) if they repurposed or redeveloped some of their land. This made it difficult for them to monetize their property, leading to the current epidemic of land-rich, cash-poor congregations threatened with closing. Indeed, Eileen Lindner in the book “Gone for Good” estimates that 100,000 churches will be sold between 2015 and 2030 because of closure or downsizing. Redeveloping congregations’ land into affordable housing can and should provide them with fair compensation for the land that they give up, giving them equity to continue their missions for years into the future.
Why do you think developers may be interested in such a partnership? What are the benefits for them?
Affordable housing developers are generally interested in working with religious congregations because they have missional alignment and strong ties to the local community where the development will be built. Also, it is less risky for a developer to gain site control for congregational land, where they don’t have significant holding costs while they entitle and finance the development. Compare this to private land sellers who often just seek top dollar for their land, with payment as quickly as possible. A final reason is that congregations are often located in desirable downtown locations or in suburbs with good quality schools; this gives people who live in these developments a leg up to get ahead.
Have you encountered any reservations from congregations’ representatives? They are not developers and may be embarrassed by the idea of using their grounds for a commercial project.
Not all congregations want to or even should develop affordable housing on their property. Doing a large development will change the way that congregations use their campuses; it will likely require changes to their facilities and parking. Other congregations are already using their property missionally, or feel more called to use their buildings for other community-focused missions such as job training, homeless shelters, temporary housing for the unhoused/migrants/domestic violence survivors, and the like. That is all great. However, some reservations are based on erroneous and dated perceptions about affordable housing. Everyone should know that Pasadena’s recent affordable housing projects are among the best buildings in their respective neighborhoods.
Do you know any real-life projects triggered by SB4, anywhere in California? Or projects involving the repurposing of religious buildings for housing?
There are many examples of religious congregations doing affordable housing development. Jill Shook’s book, “Making Housing Happen: Faith-Based Affordable Housing Models” explored several of these examples back in 2006, but recently completed examples include United Methodist Churches in Downtown Los Angeles, Garden Grove and Santa Ana. Our Congregational Land Committee is currently working with about 25 congregations in various stages of predevelopment; some of these will use SB4.
What is the structure of your October 12 workshop? What may participants expect?
Congregations who are interested in exploring this opportunity for their property will benefit greatly from the education that the cohort will provide. Five sessions – two in person and three through Zoom – will familiarize congregations with affordable housing, zoning, types of populations to serve, best practices for agreements with developers, and other key topics. We’ll provide a bit of initial analysis to help congregations understand if they have a potentially feasible project, and what that might look like. Upon completion of the cohort, congregations have the opportunity to submit an application to receive assistance from us to put together a plan for an affordable housing development on their campus that is supported by all the necessary players and select a qualified developer who will give the congregation a fair deal for their land. This advisement, which typically would cost between $20,000 and $50,000, is provided by our committee without any upfront cost to congregations.
What drew your personal attention to this very niche topic? Why are you passionate about providing these new opportunities to congregations and local communities?
Jesus taught a way of life that is very different from the way the world works. In his kingdom, the humble, needy and marginalized come first. It’s my pleasure to help religious congregations live into this spiritual reality and serve their communities.
To sign up for the cohort, reach out to Phil at phil@arroyogroup.com or (626)795-9771. Three members of each congregation should be present, including a senior or executive member of the clergy.
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