Faith Based Model Legislation

Yes In God’s Backyard (YIGBY)

Yes in God’s Backyard (YIGBY): Supporting Housing on Faith-Based Land

As cities strive to increase affordable housing, finding suitable land for new developments has become a critical challenge. Faith-based organizations, with their long history of partnering with nonprofit developers, are uniquely positioned to help. Many of these organizations own underutilized land or structures that could be repurposed to expand affordable housing options. YIGBY legislation enables faith-based and nonprofit organizations to unlock this potential by streamlining building processes and providing tools for community leaders to create safe, stable, affordable homes for local residents and families.

YIGBY allows faith-based organizations to pursue mission-aligned development opportunities using their own land:

Faith-based and nonprofit organizations often have missions rooted in social justice and community service, making housing development a natural extension of their work. A 2020 Terner Center report identified about 38,800 acres of church-owned potentially developable in California alone. Still, much of this land is not zoned for multifamily housing, requiring rezoning—a costly and complex process that many organizations can’t navigate alone. Without YIGBY legislation, these organizations are effectively blocked from using their land to create housing that serves both their mission and the community.

YIGBY projects benefit faith-based and nonprofit organizations:
In addition to advancing their missions, housing developments can provide new revenue streams that help sustain long-term operations. Faith-based institutions face growing financial strain as church membership and subsequent giving declines. Leveraging real estate allows these institutions to generate income and expand their community presence. Projects can also offer on-site housing for staff or members, strengthening community ties and boosting retention.

YIGBY developments can create a greater diversity of affordable developments:

Faith-based organizations serve diverse communities, and their housing projects can reflect this by addressing a range of local needs. YIGBY legislation enables these institutions to develop both affordable and mixed-income housing, creating inclusive communities that welcome people from all walks of life. For example, Compass Housing Alliance’s Ronald Commons, developed under HB 1377, is a mixed-use project that includes affordable housing, a food bank, family services, and financial education programs to support low-income households.

YIGBY encourages vibrant, walkable communities:

Many faith-based properties are located near public transit, schools, and other amenities. The same 2020 Terner Center report identified 256.5 acres of church-owned, developable land in higher-resource California neighborhoods. By developing housing on these lands, YIGBY projects can reduce the need for excessive car use, promote walkability, and lower emissions, fostering connected and environmentally friendly neighborhoods.

Successful YIGBY reforms are already taking place:

Across the U.S., states are adopting policies to make it easier for faith-based organizations to develop housing. These reforms unlock the potential of underutilized land and address critical housing shortages. For example, Oregon’s SB 8 aims to remove obstacles for affordable housing developers and religious institutions by simplifying approval processes and allowing creative housing solutions on faith-based land. Similarly, California’s SB 4, known as the Affordable Housing on Faith Lands Act, provides a streamlined approval process for religious organizations and nonprofit colleges to develop affordable housing on their properties. These initiatives, alongside reforms like reducing parking minimums and allowing greater density, enable faith-based organizations to more easily contribute to addressing housing shortages and increasing access to affordable housing.

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Faith-Based Organization Model Legislation

Section 1

Purpose and Intent

1. To address housing shortages and enhance affordability, it is the policy of [state] to authorize faith-based organizations to develop affordable housing as a use-by-right on their properties. This act aims to leverage underutilized faith-based sites for community benefit by increasing housing access, reducing regulatory barriers, and promoting mixed-use, community-focused development. Project approvals are to rely on objective, transparent standards, ensuring both operational flexibility for faith-based organizations and alignment with local housing needs.

Section 2

Definitions

For the purposes of this Section:

1. “Active Ground Floor” means a portion of the ground floor dedicated to public-facing or commercial uses, such as retail spaces, restaurants, or community centers.
2. “Affordable Housing” means housing units designated for households earning no more than 80% of the Area Median Income (AMI), as defined by the U.S. Department of Housing and Urban Development (HUD) income limits and rent schedules. Affordable Housing units must maintain affordability restrictions for a minimum period of [state LIHTC eligibility period].
3. “Ancillary Uses” means additional uses within eligible developments that support and complement the primary mission of the Faith-Based Organization. These may include child care, social services, educational spaces, and small-scale commercial spaces up to 3,000 square feet each, such as bookstores, cafes, or food distribution centers.
4. “Development Site” means the land owned, leased, or controlled by a Faith-Based Organization, eligible for residential, commercial, or mixed-use development. This includes sites in single-family, duplex, commercial, office, institutional, civic and multi-family zones, but excludes light and heavy industrial zones unless residential uses are specifically permitted by zoning.
5. “Faith-Based Organization” means religious institutions, including churches, temples, mosques, synagogues, and religious higher education institutions, that directly own or lease the Development Site involved in the project.
6. “Housing Unit” means a residential dwelling that is self-contained, providing areas for living, sleeping, cooking, and sanitation for one household. This includes apartments, townhomes, and single-family residences.
7. “Mature Trees” means trees on the Development Site that qualify as mature based on specific criteria: a minimum trunk diameter of 12 inches measured at 4.5 feet above ground level, or trees that have reached a height of 35 feet or more. Preservation incentives apply to promote environmental sustainability.
8. “Ministerial Review” means a non-discretionary approval process based solely on objective planning and zoning standards without the need for public hearings or subjective local review.
9. “Mixed-Use Development” means a project that includes both Residential Use and Ancillary Uses.
10. “Net Habitable Square Feet” means the total floor area of a building that is finished, heated, and fully enclosed, excluding unheated spaces like garages, parking areas, and unfinished attics or basements.
11. “Project” means any proposed development, construction, or renovation undertaken by a Faith-Based Organization on an eligible Development Site, including residential, commercial, and mixed-use projects.
12. “Public Benefit Incentive” means additional allowances or bonuses granted to a project in exchange for providing public benefits, such as affordable housing, community services, or preservation of mature trees.
13. “Serviced Lot” means a legal parcel of land connected to both municipal water and sewer systems, enabling higher-density development and reduced environmental constraints.
14. “Setback” means the minimum distance required between a building and the property boundaries (front, rear, and sides), as specified by local zoning regulations. Setback requirements ensure space for public infrastructure, privacy, and emergency access.
15. “Steep Slope” means any land area with a rise of 10 feet or more over a horizontal distance of 25 feet, with an inclination of at least 40%, requiring additional stabilization measures during development.

Section 3

Eligibility

1. Projects shall be controlled or operated by a Faith-Based Organization. Direct ownership or a long-term lease of no less than 55 years shall be required to qualify. Affiliated subsidiaries or nonprofits are eligible only if the parent faith-based entity holds full ownership.
2. Projects shall be located on a Development Site in zones permitting Residential, Commercial, Institutional, and Civic Uses, also including but not limited to single-family, duplex, and multi-family zones.
   1. Development Sites situated in zones primarily designated for industrial purposes are excluded, except where residential uses are expressly permitted under the applicable municipal zoning regulations for such industrial areas
3. Projects qualifying as Mixed-Use Developments shall include a combination of Residential Use and Ancillary Uses. A minimum of 60 percent of Net Habitable Square Feet shall be dedicated to Residential Uses for Mixed-Use Developments.
4. Projects with Ancillary Uses shall be accessible from the Active Ground Floor, with at least one entrance every 50 feet along the primary street frontage.
5. Projects shall comply with all applicable building, fire, health and life safety codes
6. Projects shall comply with nondiscrimination rules as defined by The Federal Fair Housing Act

Section 4

Preemption

1. This act shall preempt any local zoning restrictions or ordinances that conflict with its provisions, ensuring that municipalities may not enforce contradictory rules.
2. Municipalities shall not impose any conditions, fees, or discretionary requirements to projects allowed under this law beyond those they would apply to a comparable project permitted on a by-right basis.
3. Municipalities are prohibited from applying targeted regulations or policies that specifically address Faith-Based Organization Projects in ways that reduce standard zoning allowances, add regulatory burdens, or alter project eligibility. Any local measures that attempt to override or conflict with the standards set forth in this Act shall be deemed invalid.

Section 5

Affordability Criteria

1. Projects shall must meet the following Affordable Housing requirements:
   1. All Residential Use units in eligible projects must be designated as Affordable Housing for households earning no more than 80% of AMI, with affordability restrictions to remain in place for at least [state LIHTC eligibility period].
   2. Projects may allocate up to 40% of residential units as non-affordable if reserved exclusively for:
      1. On-site managers or security personnel.
      2. Staff employed by the Faith-Based Organization.
      3. Religious personnel, such as clergy, who require on-site or nearby housing to fulfill their roles.
2. Affordability requirements shall comply with income limits and rent schedules as established by the U.S. Department of Housing and Urban Development (HUD).

Section 6

Base Incentives

1. Projects on a qualified Development Site shall be entitled to a base density of 75 dwelling units per acre, notwithstanding any underlying zoning restrictions.
2. If the locality allows for greater residential density or building heights on that parcel, or an adjoining parcel, a Project shall be entitled to the greater density or building height.
3. Projects on qualified a Development Site shall be permitted a height increase of up to one story or 15 feet above the highest height limit allowed in the zone, and a base Floor Area Ratio (FAR) of 2:1. (Virginia SB 233)
   1. Steeples or non inhabitable aesthetic or decorative uses shall be permitted an additional height allowance of 15 feet.
4. No minimum parking requirements shall be imposed on the Residential Use component or non-residential Ancillary Uses within a Project. (Los Angeles AHIP 2024)

Section 7

Additional Public Benefit Options and Bonus Incentives

1. Projects that include an Active Ground Floor with Ancillary Uses shall receive an additional Floor Area Ratio (FAR) bonus of 0.5. (Los Angeles AHIP 2024, Maryland HB 538)
2. Projects in which 40 percent or more of units contain two or more bedrooms shall qualify for:
   1. An additional FAR increase of 0.5;
   2. A height bonus of up to 11 feet.
3. Up to 1,500 square feet of Active Ground Floor space intended for Ancillary uses in a Project, shall be exempt from FAR calculations.
4. Projects that preserve existing Mature Trees on the Development Site shall be entitled to a height bonus of 11 feet.
5. Projects utilizing public benefit incentives shall be permitted a maximum FAR of 3:1 and a maximum height of 45 feet, except in areas where the underlying zoning or applicable municipal regulations already allow for greater FAR or height, in which case the higher standards shall apply.

Section 8

Development Standards

1. Setback requirements shall remain consistent with existing local zoning regulations unless specifically waived under this act. (Maryland HB 538)
2. Notwithstanding any other law, a municipality may not adopt or enforce any code, ordinance, regulation, standard, stipulation, or other requirement that establishes, directly or indirectly, any of the following:
   1. Municipalities shall not set minimum square footage or dimensional requirements for Housing Units in Projects.
   2. Municipalities shall not impose maximum or minimum lot coverage requirements for Projects.
   3. Municipalities shall not impose regulations imposing mandatory open space requirements.

Section 9

Review and Approval Process

1. Projects that meet Affordable and Eligibility criteria shall be subject to ministerial review, with objective standards applied to expedite approvals without discretionary oversight. Approval shall be based on objective standards in zoning and design. If no local standards exist, ministerial approval shall be required by default. Entitlement standards shall require that approvals or denials be issued within 15 days of a complete application submission.
2. All building permit reviews, inspections, and approvals shall be conducted concurrently rather than sequentially. Final inspections and permits shall be issued within 60 business days of application, with any required adjustments communicated by the 30th business day. (Maryland HB 538)

Section 10

Environmental and Safety Requirements

1. Projects located on a Development Site within floodplain areas shall require a full flood risk assessment demonstrating that construction will not increase flood risks or disrupt natural water flows. Compliance with FEMA and state flood management standards, including elevation and flood-proofing requirements, shall be mandatory.
2. For Development Sites located in Steep Slope areas, a geotechnical analysis shall be required to assess and address potential erosion and landslide risks. Stabilization measures, including retaining walls and drainage systems, shall be implemented as necessary to ensure slope stability.

Section 11

Exemptions

1. Development Sites located within 1,600 feet of Title V industrial uses shall be ineligible
2. under this act. (California SB 4)
3. Lots located in designated environmental protection zones, including wetlands, wildlife habitats, or areas subject to critical environmental regulations, are exempt from the provisions of this Act.
4. The minimum lot coverage requirements of this Act shall not apply to lots adjacent to critical infrastructure, such as highways, railroads, or major utility lines. Municipalities may enforce larger setbacks and additional restrictions to ensure public safety and infrastructure maintenance access.

Section 12

Enforcement

1. No additional state-level commission or local municipal ordinance approval shall be required to implement the provisions of this Act or to process qualifying development projects under its terms.
2. The [State housing authority or agency] shall monitor compliance with this Act and refer instances of non-compliance by local jurisdictions to the Attorney General, who shall be empowered to take necessary actions to ensure adherence to the provisions of this Act.

Section 13

Severability

1. If any provision of this Act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end, the provisions of this Act are severable. It is the intent of the legislature that this Act would have been enacted even if such invalid provision or application had not been included.

Section 14

Effective Date

1. This act is ordered to take immediate effect.