Rep. Adams Introduces Bill to Support Faith-Based Organizations’ Development of Affordable Housing

WASHINGTON, D.C. — Today, Congresswoman Alma S. Adams, Ph.D. (NC-12), introduced the Faith-Based Affordable Housing Predevelopment Fund Act, a bill that would help expand the affordable housing supply by addressing a critical early-stage financing gap that prevents faith-based organizations (FBOs) from developing housing on land they already own.

Across the country, houses of worship are partnering with developers to transform under-utilized land they already own into much-needed affordable housing. Yet many promising projects stall before construction because FBOs lack the resources to cover critical upfront pre-development costs.

The bill creates a five-year pilot program through the Department of Housing and Urban Development (HUD) to offer competitive grants to states, local governments, nonprofits, and community development financial institutions (CDFIs) to fund essential pre-development costs for FBO-led affordable housing projects.

“Shelter is a basic human need, and housing is a fundamental human right,” said Congresswoman Adams. “The average rent for an apartment in Charlotte is over $1,400 a month, a cost that is too high for many families. Faith-based organizations in my district and across the nation want to use their resources to build more affordable housing for their communities, but high upfront pre-development costs can be a major deterrent. My bill would relieve some of that burden on faith-based organizations and help to boost our affordable housing supply.”  

The bill is endorsed by the Faith-Based Housing Initiative, the Local Initiatives Support Corporation, and Lutheran Services in America.

“As neighborhoods become increasingly unaffordable, local places of worship across the nation are actively looking to convert their surplus land into affordable homes,” said Eli Smith, Director, Faith-Based Housing Initiative.“Yet high upfront predevelopment and exploratory costs often prove insurmountable, stopping congregations before they even get started. This bill helps ease some of those pains, making development more accessible and enabling faith organizations to unlock their land for the benefit of their communities.”

“The Local Initiatives Support Corporation (LISC) is grateful for Rep. Adams’ leadership in introducing the Faith-Based Affordable Housing Predevelopment Fund Act,” said Ralphine Caldwell, Senior Executive Director, LISC Charlotte. “Charlotte’s affordable housing crisis has been growing, and we know that many faith-based organizations want to use land they own to meet local housing needs. The Faith-Based Affordable Housing Predevelopment Fund Act would provide the predevelopment and technical assistance resources necessary to help houses of worship develop affordable housing, increasing housing options in our community.”

Pre-development activities that the grant funding can be used for include:

• Architectural and engineering design
• Environmental reviews and assessments
• Feasibility studies
• Legal expenses
• Financing application costs
• Performing market studies
• Project consultant fees
• Other costs that are deemed appropriate by the Secretary of HUD

You can read the full bill here.

A section by-section break down of the bill is available here.