When a for-sale sign goes up on a piece of undeveloped land in Austin, Texas, everyone looks – especially if it’s near jobs and schools. That includes for-profit developers, of course. And it includes Foundation Communities, a NeighborWorks nonprofit that is looking to build and grow its affordable multifamily apartment homes as the community struggles with ever-increasing rents.
“We have an ongoing land hunt,” said Walter Moreau, executive director of Foundation Communities. “We’re trying to build one or two new affordable housing communities a year. But it can be hard to find good sites in Austin.”
In February, the organization opened a large new development on what Moreau considers a very good site. He refers to it as “sacred land” – the land owned by Parker Lane United Methodist Church. The church has been in the Austin Riverside community since the 1950s and has several branches, but with the decline in numbers for the congregation, the church building itself was nearing the end of its time.
“The last worship service was five years ago,” Moreau said. “Meals on Wheels had moved out. The youth program had stopped.”
But the church found a way to turn its mission into a legacy by partnering with Foundation Communities on Parker Lane, a development that includes one-, two- and three-bedroom affordable apartments. Foundation Communities signed a 99-year ground lease for the property.
“They’d been closing a congregation a year because of declining membership,” Moreau said. “They’d sold some of their land, but they heard about us and we started a yearlong conversation.” A delegation from the church visited one of Foundation Communities’ properties and liked what they saw. The conclusion: Affordable housing could be a way to keep the church’s mission moving forward.
“The church is really involved,” Moreau said of the development. In fact, church members asked if they could volunteer at the food bank and after-school program that are included in the housing community. The answer, of course, was yes.
Partnerships between faith-based communities and housing nonprofits are occurring more these days. In Seattle, for instance, where Low Income Housing Institute is based, partnerships with churches play a role. There, too, LIHI signed a 99-year lease. “It was a true joint venture,” said Sharon Lee, executive director of LIHI. Once again, the churches are serving as volunteers in the affordable housing development, with both seeing a parallel mission.
LIHI has also had a tiny house village for people coming out of homelessness in both Seattle and Takoma.
“The land values have skyrocketed,” she said. So partnering with faith-based organizations has made a real difference – especially since they often share mission and commitment. “They’ve been terrific with their support,” she said.
A part of the community
Moreau says that in Texas, building the new development was a situation where “everybody wins.” Therewas initially some neighborhood opposition, because the church was low density. But when the community learned the nonprofit would preserve green space and oak trees and bring back the youth program, there was neighborhood support. The site will have a 5,000-square-foot learning center on the property, with classrooms for science, art and technology.
“One reason we’ve been a real fit is because we believe in the housing and services model,” Moreau said. “We can have health and financial programs on the site. We can build community through the services and programs we offer.”
Kathryn McNeely, a retired clergy member, still sits on the district strategy team for the United Methodist Church. She got involved in property issues more than a decade ago as church attendance started to decline – especially in areas where the congregations were older, where the properties were falling into disrepair. “We had a number of churches that were – I hate to say it – dying,” she said. “So we have these buildings, and these congregations that are shrinking. We still wanted to do the work.”
A partnership like the one that they have with Foundation Communities made sense, she said, and she liked the fact that the church could hold onto their properties. “We don’t know what neighborhoods and communities will need in the years ahead,” she said “But at the same time, we want to serve the communities and neighborhoods right now.”
The new development is a way to do just that. Plus, she said, Foundation Communities include office space for the church in their plan. And the church can use the gathering space in the evenings or weekends when it’s not in other use.
“The United Methodist Church follows the teachings of Jesus on the ways to take care of the poor and the hungry,” she said. “We see that as a mandate in what our purpose is: To reach out to communities, to see what the needs are, and to work on providing them.”
After the grand opening, the church brought breakfast tacos for the entire community.
C. Brooks Schuelke, a lay leader with the church, was on hand that day. “The first woman who showed up that morning’s name was Hope,” he said. He took it as a sign.
“I hope that this is a legacy the church can leave as we continue to serve the community in a different way. Hopefully, it’s a model.”
Already, the church and Foundation Communities are talking about developing another property in a similar way.
For peer organizations looking to partner with faith-based organizations, Moreau said it’s important to think beyond housing and about the impact the church may still want to make. “If you approach it strictly as a real estate transaction, even for affordable housing, it’s probably not the right approach,” he said. “We were able to partner with the church in a holistic way. Most congregations that would be motivated to partner really want to look at the needs of the surrounding neighborhood.”
