Faith in Action
TRANSFORMING SACRED SPACES INTO AFFORDABLE HOMES
Faith-based redevelopment—converting religious buildings and property into housing and mixed-use—brings a unique and exciting opportunity to combine economic goals with a higher purpose, creating benefits for everyone involved—investors, developers, and the communities they serve. By reimagining underutilized church properties, these projects can transform neglected and/or underutilized properties into prime real estate for affordable housing, community centers, and vibrant mixeduse spaces.
For investors and developers, this approach offers much more than just a great location. It opens doors to development incentives and meaningful partnerships with trusted community networks, ensuring both financial success and lasting impact.
At its heart, faith-based redevelopment stays true to the core values of religious faith—stewardship, service, and supporting others. These projects tackle housing insecurity and create spaces where people can connect and thrive. The result? Stronger, more connected communities and a sustainable return on investment—a win-win that brings both practical and spiritual rewards.
From Surplus to Shelter: A Bold Answer to the Housing Crisis
The U.S. faces a deficit of nearly 7 million affordable homes. As housing shortages continue to challenge communities across the nation, an innovative solution is emerging: the conversion of surplus faith properties into affordable housing. Churches and other faith-based organizations—
often with underutilized land or buildings—are stepping up to address this critical need. The faith community holds millions of acres of land nationwide, much of it already zoned for housing. Adding residential units to this land can create new housing supply for vulnerable populations while delivering revenue and relevance to places of worship. By repurposing these assets, they not only provide much-needed housing but also fulfill their mission to serve their communities, offering a hopeful path forward in the housing crisis.
Brian O’Reilly, residential leader within Perkins Eastman’s Seattle studio, notes “these initiatives are introducing affordable housing to neighborhoods where such options are scarce.” Over the years, numerous successful affordable housing projects have been developed from faith-based properties. This approach
is seeing renewed interest from faith communities, local governments, the real estate sector, and non-profit organizations. O’Reilly explains that many of these projects can include residential units without incurring property taxes, which helps ensure that rents remain affordable for a wide range of residents, particularly those with low to moderate incomes.
How Communities and States are Empowering Affordable Housing Redevelopment
Localities and even states have begun to organize legislation to reduce redevelopment barriers and assist faith organizations willing to consider affordable housing initiatives. Here are a few examples:
CITIZEN ACTION: San Diegans have launched a YIGBY (“Yes in God’s Backyard”) movement to provide a counterweight to NIMBY (“Not in My Backyard”) groups. The YIGBY team describes itself as “an action-based, collaborative group of cross-sector professionals called to address San Diego’s housing crisis by activating abundant, under-utilized faith community properties.” The movement is spreading nationwide.
CITY LEGISLATION: The cities of Atlanta, San Antonio, and Seattle have forged initiatives to encourage faith institutions to consider building affordable housing on their surplus properties. The programs can include planning assistance, pre-development money, and density bonuses for affordable housing development.
STATE LEGISLATION: The State of California last year passed SB 4, the Affordable Housing on Faith Lands Act, which makes it legal for faith-based institutions and nonprofit colleges to build affordable, multifamily homes on lands they own by streamlining the permitting process and overriding local zoning restrictions.
Building on Faith: The Power of Collaboration in Redevelopment
Collaboration between faith-based organizations (FBOs), housing developers, and architects creates a solid foundation for impactful housing development by aligning mission-driven goals with practical expertise. Faith-based organizations, as trusted and established members of the community, are uniquely positioned to build on their strong relationships and goodwill to foster collaboration, address concerns constructively, and create broad support for their projects. Partnering with market-rate developers allows FBOs to leverage proceeds to subsidize affordable housing, maximizing resources to fulfill their mission. Architects, meanwhile, translate FBOs’ spiritual and communal goals into designs that balance functionality and sanctity.
For example, St. Luke’s Episcopal Church in Seattle partnered with a real estate consultant to structure a redevelopment project that combined family-sized affordable housing with community-focused amenities, including childcare and neighborhood programs. By issuing an RFQ, they engaged both market-rate and affordable housing developers. The value of the land was leveraged to subsidize the sale of the affordable parcel, to cover the construction cost of a new sanctuary, and to establish a stable, growing income stream for St. Luke’s. O’Reilly explains, “St. Luke’s offered an exciting design challenge - to create a vibrant, mixed-income, mixed-use community, while cementing the Church’s presence as a pillar of the civic core of Ballard.”
CONCEPT FOR ST LUKE’S HOUSING, SEATTLE, WA
Lessons in Faith
INSIGHTS FROM FBO REDEVELOPMENT SUCCESS STORY
St. Luke’s Mixed-Income Housing, Seattle, Washington
1. ALIGNING MISSION WITH COMMUNITY NEEDS
At the heart of St. Luke’s Redevelopment is a commitment to fostering a beloved community grounded in faith and service. In partnership with developers BRIDGE Housing and Security Properties, St. Luke’s Episcopal Church is transforming its underutilized land into a mixed-income housing community that supports the church’s mission of nurturing both physical and spiritual well-being. This development is designed to serve vulnerable populations in a way that reflects the church’s deep-rooted values of inclusivity, sustainability, and community care. Beyond housing, St. Luke’s continues its legacy of service by offering essential programs, such as its food ministry, that engage and uplift the surrounding neighborhood, strengthening the church’s role as a place of welcome and healing.
This past spring, the congregation broke ground on their affordable housing project, which will include 84 affordable units in the Ballard neighborhood—an area where the average home is valued at nearly one million dollars. The project is a crucial step in ensuring the congregation’s continued service to the community while addressing critical housing needs.
2. NAVIGATING ZONING AND REGULATORY CHALLENGES
The St. Luke’s Redevelopment project offers key lessons in both community engagement and creative design solutions. Thanks to St. Luke’s reputation as a trusted community member in Ballard, the project benefited from early and open dialogue with residents, allowing the design to be responsive to their needs and desires. This collaborative approach fostered strong support for the initiative and facilitated smooth interactions with city officials and stakeholders, helping to navigate zoning and regulatory challenges and secure the necessary approvals.
A unique challenge in this project was the zoning code requirement for stepped massing as the building increased in height. This rule is designed to enhance the urban environment by providing more daylight, reducing the “canyon effect,” and preserving a humanscale appearance. However, the stepped design complicated unit stacking and added construction costs. Additionally, the site contained several “exceptional trees” that were protected by Seattle’s land use code. Under these regulations, departures from setback requirements, as well as increased height and FAR, are allowed if exceptional trees are preserved.
ST LUKE’S MIXED-INCOME HOUSING, SEATTLE, WA
By understanding the intent behind these regulations, the design team, led by Perkins Eastman, proposed an innovative solution. Instead of following the costly stepped massing, they created a design that simplified the building’s form while preserving the grove of exceptional trees on the north side. This preservation not only maintained a valuable neighborhood asset but also provided a natural buffer to lower-scale development to the north. The non-stepped massing facing west was more appropriate for this site, as it faces a large park, effectively serving as a bookend to this urban space.
This thoughtful approach, which included strategically utilizing zoning provisions to increase height and FAR while preserving the natural environment, demonstrates how faith-based organizations (FBOs) can advocate for affordable housing that aligns with their mission. The lesson is clear: informed advocacy, an understanding of zoning regulations, and a willingness to creatively adapt designs can result in outcomes that serve both community needs and regulatory requirements. Through persistence and strategic design, St. Luke’s successfully navigated complex challenges, resulting in a project that enhances urban design, supports environmental sustainability, and fulfills the church’s mission of social good.
3. SUSTAINING THE PROJECT OVER TIME
Long-term viability is a key factor in the success of St. Luke’s Affordable Housing. The project was designed to not only meet the immediate needs for affordable housing but
also ensure its enduring impact. By focusing on energy-efficient construction, affordable rental pricing, and robust long-term management plans, the project is positioned to continue serving low-income residents for years to come.
FBOs interested in affordable housing projects must prioritize long-term planning— both in terms of financing and community engagement. St. Luke’s success shows that projects grounded in thoughtful, longterm strategies can continue to benefit the community for generations.
Rebuilding Communities Through FaithBased Housing Solutions
Faith-based organizations play a pivotal role in addressing housing shortages by offering innovative solutions, advocating for policy changes, and securing funding to weave faith into the fabric of our communities. Beyond affordable housing, these groups provide essential support services like financial literacy programs, job training, and emergency shelter, promoting long-term stability and enabling individuals to thrive. As city and state laws evolve to support religious institutions in developing housing, faith-based groups have increasing potential to rejuvenate under-utilized and out-of-date spaces and transform them into vibrant, affordable neighborhoods. This surge of interest in faithdriven housing initiatives offers a hopeful path toward sustainable, inclusive communities that uplift everyone.
To learn more about Perkins Eastman’s work with faith-based organizations, get in touch with Brian O’Reilly, Residential Practice Area Leader.