For churches with their own property, this is likely the time for your first big decision. There are a few different ways to transform your land resources into housing, each with its own benefits and drawbacks. Just Homes can help explore and advise which is right for your congregation. 

To start with, let’s explore these options as described by Virginia Diocesan Homes, a division of the Episcopal Diocese of Virginia that supports churches through housing development:

1. Sell land to the developer

   Advantage: Simplest option, provides income for the church, requires minimal effort on the part of the church.

   Disadvantage: Church loses its ownership of the property, must relinquish its decision-making power over the property and provision of services.

2. Lease land to the developer

   Advantages: Maintains ownership of property, can still bring in income through the lease, brings in expertise and experience, reduces burden of managing day-to-day oversight and activities.

   Disadvantage: Church has little to no input in the vision of the development once the agreement is made (unless special provisions are included), and no access to developers fee.

3. Lease land and co-develop with a developer

   Advantages: Maintains ownership of property, brings income from both land lease and portion of the developers fee, allows church to drive mission and vision of the development.

   Disadvantages: More risk, requires significant time, effort, and investment from church leadership.

Just Homes will make sure you have all the information you need to make an informed decision. Many factors are involved -- land factors, church denomination factors, housing market factors, congregation & financial factors -- and often churches end up moving forward with a combination of these options.

For example, Westminster Presbyterian Church in Southwest DC sold a portion of its land outright and leased another portion for two separate development projects. Fairlington Presbyterian in Alexandria sold portion of its land for development but included an agreement with the developer that they could be part of the building design and planning process.

If you choose to sell, Just Homes can help you do so in a way that aligns with your mission. There are opportunities to sell your land using an affordable housing covenant to restrict use in the future and to preserve affordability, to sell your land to a community land trust to ensure its use remains mission-focused, or countless other creative solutions. 

Once again, you’re not making this decision alone. Just Homes is here for you and will bring in other trusted experts to help you make the best decision for your congregation and community.