Our Process
Step #1 Identify & Inform Congregations: Involves the Cohort which we offer twice a year. Typically, 5-15 congregations participate. Upon completion, if they turn in their intake forms, we evaluate their form and again review their site, and in most cases, we offer them a contract and we continue to the next step.
Step #2 Initial Feasibility Study: We prepare a feasibility study and determine what type of affordable housing can be built on their site, based on their zoning and state and local laws. We consider local attitudes toward development, physical characteristics of the site, funding availability for different target populations, then offer several architectural concepts, based on the congregation’s goals and needs.
Step #3 Review & Discernment: Discernment, the congregation takes time to review what we have provided, and if needed, conducts a congregational vote and/or work with their denomination, to decide to move forward. This step is largely driven by the leadership and the congregation itself with our support, however, our team can be supportive by presenting info and answering questions from church leaders, including denominational leadership; meet with city planners.
Step #4 Developer RFP: We create a Developer Request for Proposals (RFP), outlining the congregation's history and goals, target population they wish to serve, and at least one site plan for affordable housing with their desired terms of deal. This step elicits plenty of discussion with the congregations and our team. The RFP is pitched to potential affordable housing developers. We support the congregation during interviews but their choice of a development partner is theirs.
Step #5 Agreement Negotiation: We support the congregation with a Development Agreement to make sure that the terms of the agreement are fair and in line with what the congregation wants.
Step #6 Owner Representation: If desired, is Owner Representation during the developers pre-development, construction phase and rent up.
Frequently Asked Questions
Q. We don’t understand much about building housing. Do we have to do this ourselves? If we don’t, when should we reach out for help?
Churches generally do not have all the financial resources, know-how, time and energy to take on a housing project all by themselves. They are often best served by partnering with affordable housing developers who will do all the pre-development, financing, construction, lease up and property management. However, a developer is only engaged once a church has clarified what they feel called to do, so that they can proceed with confidence and choose their development partner wisely. Congregational Land Partners will help you understand and clarify your goals.
Q. Do we have to pay or sell our property?
Depending on how a deal is structured and what the project’s goals are, a church can have affordable housing built on their property, they don’t have to sell their land, and they don’t have to pay to have it built. A ground lease is a common ownership structure that accomplishes these goals. Churches can also joint venture with developers to be more involved in the day-to-day operations and management of the project.
Q. How do Congregational Land Partners (CLP) get paid ?
We will work with you to create a strategy that works for your needs. Congregations that participate in our cohorts and which are selected to continue through an application process can often receive our support for no or minimal upfront cost, with our compensation coming only later once a developer is selected and/or construction begins, when congregations have received income to be able to pay for our services.
Q. What properties are often used for housing?
Affordable housing is commonly built on churches’ excess parking lots, excess educational or office buildings, and/or even where chapels or sanctuaries stand. Sometimes new space for church services or offices is built back into the new development.
Q. Can our members live in the new housing?
Housing projects that receive public subsidies must have an open and fair application process. Members who qualify can be encouraged to apply. If a congregation uses SB 4 to build housing, then 5% of the housing can be for congregational staff if they pay for it through their long-term lease or other means.
Q. What if our church does not have the proper zoning to allow for affordable housing?
Through SB 4, a state law that overrides local zoning, congregations are allowed to build critically needed affordable homes on their own land. SB 4 removes restrictions and speeds up approval processes so affordable homes for seniors, low-wage workers, people with disabilities, and low-income families can be built easier, faster, and less expensively. SB 4 has language to prevent and limit development in Very High Fire Severity Zones, hazardous waste sites, earthquake fault zones, flood hazard areas, floodways, conservation lands, and habitats for protected species.
Q. Can we build new congregational spaces in housing projects?
It is possible to build new congregational spaces within housing developments. Upgrades to existing buildings or the inclusion of new facilities that the church envisions can be incorporated into the redevelopment project.
Q. How much land do we need to build affordable housing?
To be appropriately sized for a Low-Income Housing Tax Credit (LIHTC) development, the land should generally be able to support at least 50 units. This helps ensure the project is both financially and economically viable. When a project is either not the appropriate size to qualify as a Low-Income Housing Tax Credit (LIHTC) development or does not qualify for higher density housing using SB 4, alternative options can be explored. The “Small Homes” strategy can serve as a viable, practical option for congregations unable to pursue larger-scale housing projects. Single Room Occupancy (SRO) development is also a potential option in some cases.
