Churches have long been cornerstones of our communities, offering spiritual guidance, social services, and vital gathering spaces. Yet, in recent years, many congregations — especially those of color — have struggled to maintain their 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 in the past two decades, by nearly 10%. The exodus of parishioners and would-be 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. A lot of ink has been spilled covering the debate and the process of passing City of Yes, but now we are excited to get to put it into action.
One of its standout elements is the Universal Affordability Preference policy, which provides density increases for affordable housing production. The zoning adjustment incentivizes developers to maximize the number of affordable units, ensuring that communities not only receive more housing, but housing that directly serves their needs.
For neighborhoods grappling with rising rents and diminishing resources, Universal Affordability Preference is a critical tool for creating homes, while maintaining the stability of long-term residents.
For faith-based organizations, City of Yes’ zoning reforms are especially transformative. They make it easier to develop mixed-use projects or repurpose underutilized properties into vibrant community hubs. These measures empower churches and other institutions to leverage their real estate for long-term financial stability, while addressing critical housing shortages.
Take the story of First Reformed Church in Jamaica as an example. Founded more than 300 years ago, this Queens congregation has weathered many storms, but recent years have brought unprecedented challenges. A previous developer demolished the former house of worship, leaving the congregation without a home. For years, First Reformed worshipped remotely, a situation that strained finances, shrank membership, and diminished morale.
Last year, Haussmann Development, a multi-family developer and operator, took over the stalled project and shifted its focus from a 70% market-rate model to a 100% 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 undergoes 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 convenient by differing worship schedules; the Adventist congregation gathers on Saturdays and the First Reformed on Sundays.
Haussmann’s commitment goes further: upon completion, the project will deliver a 14,000 square foot state-of-the-art, turn-key new house of worship for First Reformed, alongside much-needed affordable housing.
City of Yes plays a pivotal role in turning this vision into reality. Universal Affordability Preference adds 51 affordable units to the project, increasing the unit count to 255. The increased density enhances the project’s pro forma, while ensuring rents remain genuinely affordable: For example, a typical one-bedroom unit will rent for $1,369 per month, while a two-bedroom will rent for $1,642. In a city where vacancies are virtually nonexistent, these affordably priced homes are a lifeline for New York families.
The increased unit count will help The Tabernacle better service its ground lease obligations to First Reformed, which is financially heavily reliant upon the rent payments. It also enables Haussmann to fulfill its commitments to both the city and the community, delivering both housing and a new house of worship.
The future success of Project Tabernacle should serve as an inspiration for other faith-based organizations to explore their real estate potential. Housing development can offer a sustainable path to financial stability while addressing pressing community needs.
The next step is clear: passing laws like the proposed Faith-Based Affordable Housing Act, which could unlock even greater potential for faith-based institutions. Collaboration among government, developers, and faith-based organizations is more critical than ever.
Goodman is the principal and owner of Haussmann Development. Kellar is the pastor of First Reformed of Jamaica.