How Faith-Based Land Partnerships Are Reshaping Affordable Housing Economics

The affordable housing crisis in Southern California has reached a critical stage, with development costs often soaring above $1 million per unit in some markets. In response, a new model is emerging that utilizes an underappreciated asset: land owned by churches. By collaborating with faith communities, developers are finding ways to significantly lower costs while addressing both the region’s housing shortage and the financial challenges facing many congregations.

Martin Porter, founder and CEO of Logos Faith Development, has built his company around this concept. Instead of purchasing expensive urban land, Logos partners directly with churches and denominations that own underutilized properties, creating a development approach that delivers affordable housing at far lower costs than conventional methods.

Churches want to be part of the solution to a crisis, and right now, the societal crisis we face is lack of housing, Porter explains. Its not just lack of housing for the least, lost, and left out, but its also lack of housing for the missing middle.

Unlocking Church-Owned Land

The core of this approach is a straightforward reality: many churches possess valuable real estate that remains largely unused. Porter sees this as a convergence of need and opportunity.

Churches have a tremendous amount of excess land, excess unused land, or land that isnt used for its highest and best use, or can be reconfigured with a smaller church on the same property, he notes.

At the same time, many congregations are experiencing financial pressures. They have membership rolls that are diminishing. They have aging facilities. Those folks that are there are giving less, and at the same time, they would like an opportunity for new income streams.

This creates an alignment of interests. They both solve a problem and have a problem solved by working with Logos.

A New Approach to Development

Logos structures each project as a single-purpose limited partnership. Rather than buying church land outright, the property is contributed to a new entity in which the church is a full partner.

We dont like to say were selling the churchs property from them, Porter clarifies. We are putting it into a new structure that will allow them to totally fulfill their vision of what theyve always wanted to do on that land.

This approach brings several advantages. There’s no site acquisition cost, often one of the largest expenses in urban development. In addition, by maintaining nonprofit status within the partnership, the model avoids prevailing wage requirements and union labor mandates typically triggered by tax credit financing.

By not triggering LI HTC or tax credits, we dont trigger union labor. We dont trigger prevailing wage, Porter explains. No tax issues, no union labor, no prevailing wages, no site acquisition. That makes our charitable, compassionate model as competitive as most other developers right now.

Lowering Development Costs

The financial benefits are substantial. Porter reports achieving development costs under $315 per square foot, all-in hard and soft costs per unit, well below the million-dollar-per-unit costs that have drawn scrutiny to California’s affordable housing efforts.

If you go to most peoples pro forma and take off the cost to purchase the land, youve already answered most of the question, Porter points out, emphasizing how land acquisition typically dominates development budgets.

The model also draws private capital focused on impact investing, including family foundations, forgivable grants, and low-interest loans. Notable supporters include the Disney Foundation and private Christian family foundations, as well as banks and insurance companies seeking to fulfill community investment obligations.

Selecting Projects and Building Support

Logos generally targets developments of 40 units or more, though Porter says this threshold may rise to 60-75 units. Projects are typically located on commercial corridors near transit stops, in areas described as challenged but emerging.

In South LA, there are great emerging micro areas that are doing great, or theyre about to do great, or you can feel that theres a change coming, Porter observes.

A significant advantage of the church partnership is built-in community support, which can help speed up the approval process. When we get 92 votes from a church to move forward with a project, thats as much buy-in as anybodys going to get from a community, Porter explains. When we take that to the city and say we have 92 members of this church who have voted to move forward with this project, theyve already gotten the imprimatur that they would get if they did five community meetings.

Growing Pipeline and Regional Expansion

The faith-based strategy has produced a strong pipeline of potential projects. We do no outbound marketing, Porter notes. We have churches and denominations knocking at our door. We have a pipeline that would be the envy of most developers, precisely because were faith-based and mission-focused.

Currently, Logos is working with Walker Dunlop to raise about $400 million in combined debt and equity financing. Three projects have received permits and are scheduled to break ground later this year, while nine or ten additional sites are in pre-development.

The geographic focus is primarily Southern California, especially Los Angeles and San Diego counties, with one project in Portland that could signal future expansion in the Northwest.

Broader Market Implications

The Logos model demonstrates how alternative land acquisition strategies can transform affordable housing finance. By leveraging the mission alignment between faith communities and housing advocates, this approach creates value for multiple stakeholders while addressing critical housing needs.

For investors, the model offers competitive returns without the regulatory hurdles of traditional affordable housing financing. For churches, it opens new revenue streams while advancing their social missions. For communities, it delivers desperately needed housing at costs that make projects feasible.

As housing affordability challenges persist nationwide, faith-based development partnerships could become a scalable solution for other regions. The key is recognizing that churches are not just potential development partners, but mission-aligned allies in addressing one of the most urgent issues facing American communities.

By bringing together underutilized land, motivated congregations, and impact-driven capital, this model provides a path forward for affordable housing that is both financially and socially sustainable. The continued success of Logos Faith Development and similar organizations may offer a template for how communities across the country can address housing needs creatively and collaboratively, using resources that have long been hiding in plain sight.

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