Unlocking Faith-Based Lands for Affordable Housing

Across North America, countless churches, synagogues, mosques, and temples occupy large, often underutilized lots in urban areas. While these religious institutions grapple with dwindling congregations and rising operational costs, they are uniquely positioned to contribute to the urgent need for affordable housing. With strategic location near transit and existing communities, they are keen to transform their properties into homes for seniors, families, newcomers, and those facing homelessness. Yet, despite the will and need, they face significant barriers in the development landscape.

The Promise of Faith-Based Land

Faith-based organizations hold unique advantages that make them ideal partners in solving the affordable housing crisis:

1. Mission Alignment: Many of these institutions inherently strive to serve vulnerable populations and foster inclusive communities.

2. Long-Term Land Ownership: Often, they possess their land outright, which eliminates costly land acquisition hurdles typical in development projects.

3. Trust and Relationships: Being embedded in their communities provides these organizations with invaluable social capital and a commitment to long-term stewardship.

4. Stability and Patience: Unlike profit-driven developers, faith-based entities typically have a generational timeframe, focusing on building enduring solutions rather than seeking quick returns.

Despite these strengths, the regulatory environment poses substantial challenges that often render their initiatives practically unattainable.

The Zoning Wall

Take, for instance, a church located on a major arterial road—a prime location for higher density development. This site is within walking distance of public transit, schools, and shopping centers. Yet, due to restrictive zoning regulations designating the area as “Institutional,” the church is limited to uses such as worship and daycare. In contrast, a private developer with a parcel of land designated as “Residential” across the street can legally construct a six-story, 60-unit building without facing the same obstacles.

This discrepancy highlights a fundamental issue: although municipal governments often declare objectives to increase housing supply, institutional zoning regulations remain rigid and inflexible. They frequently restrict allowable uses, making it challenging and costly to initiate housing projects, particularly multi-unit developments, which often require an arduous rezoning process fraught with risk and public opposition.

Organizations such as Kehilla Affordable Housing are working to change this paradigm. Sponsored by Canada Mortgage and Housing Corporation’s Solutions Lab, Kehilla seeks to reform zoning bylaws in collaboration with municipalities across Canada. Their initiative aims to empower faith-based institutions by developing practical policy tools that streamline the zoning process.

“Faith-based organizations are already deeply embedded in their communities—they just need the tools to unlock their potential. With the right zoning in place, we can turn underused land into lasting, affordable housing,” asserts Lisa Lipowitz, Kehilla’s Executive Director.

Why Faith-Based Groups Struggle to Build Housing

While zoning is a significant barrier, it is not the only challenge these organizations face. Many faith-based institutions lack experience in real estate development, often unfamiliar with the terminology and processes associated with it. They typically do not have access to in-house planners, real estate lawyers, or the financial acumen required for such ventures. This unfamiliarity can breed apprehension about risking their core missions and land in what may seem like uncertain projects.

Even when partnerships are formed, inherent power imbalances can complicate collaboration. Without clear and supportive policies, faith-based organizations may find themselves navigating a system designed for profit-seeking developers, making it difficult to secure favorable terms and outcomes.

Why This Is Low-Hanging Fruit

Unlocking faith-based land for affordable housing is not only feasible but represents one of the most equitable tools available to tackle housing shortages. Here’s why:

1. It’s Already There: The land for potential housing exists; the challenge lies in making it usable under current regulations.

2. It Aligns with Housing Goals: Often, these sites are precisely where increased density is desired, making them ideal candidates for housing development.

3. It Delivers Deep Affordability: With appropriate partnerships and frameworks, these projects can cater to the most vulnerable segments of the population.

4. It Builds Social Infrastructure: Housing projects initiated by faith-based organizations not only provide shelter but also fortify community ties and enhance social fabric.

A Call to Municipalities: What Needs to Change

In order to liberate faith-based lands for affordable housing, municipalities must take decisive action. Below are key recommendations for how local governments can facilitate this process:

1. Update Zoning Bylaws: Amend local regulations to allow residential uses, especially affordable and supportive housing, on institutional lands as a matter of right.

2. Align Official Plan Designations: Ensure that existing development plans permit housing in suitable locations that already support high density, with appropriate infrastructure and transit access.

3. Provide Clear Guidance and Support: Help faith-based organizations navigate the approvals process with standardized templates, feasibility funding, and technical assistance.

4. Promote Partnerships: Encourage collaboration between faith-based groups and experienced non-profits or public agencies to maintain mission-driven control while benefiting from specialized expertise.

Conclusion

The potential to transform faith-based land into affordable housing is immense and vital in today’s housing crisis. By reforming zoning laws and providing support, municipalities can unlock this low-hanging fruit, enabling faith-based institutions to fulfill their missions and contribute significantly to building inclusive communities. The time to act is now—because when faith meets housing, the possibilities are boundless.

Editor’s Note: Naama Blonder currently sits on the Board of Directors of Kehilla Affordable Housing.