New Federal Grants Target Churches and Colleges to Build Affordable Housing

The “Yes in God’s Backyard Act” aims to tackle the housing crunch by leveraging an often-overlooked resource: land owned by faith-based organizations and colleges. This bill sets up two key federal programs to help these groups convert their excess property into affordable rental units, focusing on getting homes built for people who need them most.

The Plan: Unlocking Land Assets

At its core, this legislation creates a dual approach to increasing housing supply. First, it establishes a Technical Assistance Program, authorized for $25 million in 2026, to act as a consulting service. This program will teach faith groups, universities, and local governments how to navigate the complicated process of developing their land, preserving existing affordable housing, and cutting through local red tape. This is crucial because a church or a university might have the land, but they usually don't have a full-time real estate development team.

Second, the bill creates a competitive Challenge Grant Program, authorized for $50 million annually from 2026 through 2031. This money isn't for building the housing itself, but rather for rewarding and funding states and local governments that are already doing the hard work of removing regulatory barriers. Think zoning changes, easing density restrictions, or speeding up permit approvals for projects on these specific properties. If a city already has policies that make it easier for a college to build apartments on its campus, that city gets preferential treatment for these federal dollars.

Who Gets the Keys?

This isn't just about building more units; it’s about prioritizing specific populations. The bill defines “affordable rental housing” as a unit where a household earning up to 100% of the area’s median income pays no more than 30% of their monthly income on rent. However, the grant program specifically gives preference to projects serving the most vulnerable groups. This includes housing for families earning below 60% of the area median income, extremely low-income families, veterans and others experiencing homelessness, and people with disabilities. The goal is to maximize the impact in areas where the housing crisis hits the hardest.

For example, if a large church in a wealthy suburb (a “well-resourced area of opportunity”) uses this program to build units for extremely low-income families, that project is going to be high on the priority list for grants and technical support. This provision aims to break up concentrations of poverty and provide housing options in areas with better schools and job access.

The Fine Print and the Follow-Through

While this is a smart way to incentivize local change, the bill does leave some important definitions up to the Secretary, which means the details matter. For instance, the exact definition of a “faith-based organization” that qualifies for help will be set by the Secretary, relying partly on who is already assisted by the Center for Faith-Based and Neighborhood Partnerships. This administrative power means the Secretary gets to decide who is in and who is out of the program.

For local governments applying for the Challenge Grants, there’s a requirement to make their proposed plan public and address any comments received before submitting the final application. This is a good measure for transparency, ensuring the community has a voice in how these funds are used to change local policy. Overall, this bill provides a significant financial push and the necessary know-how to turn underutilized institutional land into much-needed homes, directly targeting the supply shortage in the affordable housing market.