Churches have long been the cornerstone of our communities, providing spiritual guidance, social services and vital gathering spaces. Yet in recent years, many congregations – particularly those of color – have struggled to maintain relevance and resources in a rapidly changing urban landscape.
Post-pandemic remote work situations and the lure of warmer weather and – yes – better housing options have had an impact on our church rolls. According to the New York Times, for example, New York City’s African-American population has declined by nearly 200,000 people over the past two decades, a decline of nearly 10 percent. The exodus of parishioners and future parishioners saps the strength of our churches, perpetuating a cycle of decline.
The recent passage of the City of Yes heralds a new direction, equipping faith-based organizations with powerful tools to revitalize their missions and properties. The law aims to modernize Byzantine zoning, streamline approval processes and unlock housing potential across the five boroughs. Much ink has been spilled on the debate and adoption process for City of Yes, but we are now excited to be able to put it into action.
One of its most notable elements is the Universal Affordability Preference Policy, which provides for increased density for the production of affordable housing. Adjusting zoning incentivizes developers to maximize the number of affordable units, ensuring that communities not only receive more housing, but also housing that directly meets their needs.
For neighborhoods struggling with rising rents and shrinking resources, universal affordability preference is a critical tool for creating housing while maintaining long-term resident stability.
For faith-based organizations, City of Yes’s zoning reforms are particularly transformative. They facilitate the development of mixed-use projects or the transformation of underutilized properties into vibrant community hubs. These measures allow churches and other institutions to leverage their real estate holdings to provide long-term financial stability, while also addressing critical housing shortages.
Let us take as an example the story of the first Reformed Church in Jamaica. Founded more than 300 years ago, this Queens congregation has weathered many storms, but recent years have brought their share of unprecedented challenges. A previous developer demolished the old house of worship, leaving the congregation without a home. For years, the Early Reformed worshiped remotely, a situation that strained finances, reduced membership, and diminished morale.
Last year, Haussmann Development, a multifamily housing developer and operator, took over the stalled project and shifted its focus from a 70 percent market-rate model to a 100 percent affordable housing plan. The project, aptly renamed The Tabernacle, is a powerful symbol of renewal – a reminder that even in the wilderness, communities can come together to rebuild.
While the project is in pre-construction planning, Haussmann has stepped in to support First Reformed by funding a temporary worship space at the nearby Seventh-day Adventist Church. This partnership is made practical by different worship times; the Adventist congregation meets on Saturdays and the Early Reformed on Sundays.
Haussmann’s commitment goes further: Once complete, the project will provide a new, state-of-the-art, 14,000-square-foot turnkey house of worship for Early Reformers, as well as much-needed affordable housing.
City of Yes plays a pivotal role in turning this vision into reality. The Universal Affordability Preference adds 51 affordable units to the project, bringing the number of units to 255. The increased density improves the project’s pro forma, while ensuring that rents remain truly affordable: for example, a typical unit of a one-bedroom will rent for $1,369 per month, while a two-bedroom will rent for $1,642. In a city where vacancies are virtually non-existent, these affordable homes provide a lifeline for New York families.
The increased number of units will help The Tabernacle better meet its ground lease obligations to First Reformed, which is heavily financially dependent on rental payments. It also allows Haussmann to fulfill its commitments to both the city and the community, by providing both housing and a new place of worship.
The future success of the Tabernacle Project should serve as inspiration for other faith-based organizations to explore their real estate potential. Housing development can provide a sustainable path to financial stability while meeting pressing community needs.
The next step is clear: pass laws like the proposed Faith-based Affordable Housing Act, which could unlock even greater potential for faith-based institutions. Collaboration between government, developers and faith-based organizations is more essential than ever.
Goodman is the principal and owner of Haussmann Development. Kellar is the pastor of the Jamaica First Reformed.
