The Yes in God’s Backyard Act would add a new Subtitle G to the National Affordable Housing Act to create two federal programs aimed at expanding affordable rental housing on property owned by faith-based organizations and institutions of higher education. The core idea is to provide technical assistance and competitive grants to help remove zoning, land-use, and administrative barriers that stand in the way of developing or preserving housing for households with limited incomes on those properties.
The bill also defines key terms to guide eligibility and priorities, and it establishes fundingauthorizations to support both programs.
At a Glance
What It Does
The Secretary must establish a Technical Assistance Program to help faith-based organizations, colleges, and local governments remove barriers and develop or preserve affordable rental housing on their properties. It also creates a Challenge Grant program to fund projects that remove barriers and increase supply on such properties.
Who It Affects
Faith-based organizations, institutions of higher education, and local governments are direct beneficiaries; residents in households at or below 60% of area median income, including homeless or at-risk individuals, veterans, and people with disabilities, stand to benefit through new or preserved affordable housing.
Why It Matters
The programs leverage existing faith and academic assets to unlock underutilized properties and address affordable housing gaps, especially for households earning at or below a 60% AMI in well-resourced areas, while establishing defined metrics and oversight.
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What This Bill Actually Does
The Yes in God’s Backyard Act creates two new federal programs within the National Affordable Housing Act to boost affordable rental housing on property owned by faith-based organizations and institutions of higher education. First, a Technical Assistance Program would provide guidance and resources to faith-based groups, colleges, and local governments on how to convert unused or underused property into affordable rental housing, with a focus on households at or below 60% of the area median income, as well as those who are homeless or at risk of homelessness, including veterans and people with disabilities.
The program also covers best practices for development, financing, land use, and partnership arrangements, and requires coordination with federal housing agencies and the Partnership Center.
Second, a Challenge Grant program would award funds to eligible grantees—such as local governments, states, metropolitan planning organizations, and multi-jurisdiction entities—that have policies designed to remove barriers to housing production or preservation on faith- or college-owned land. Grants would prioritize outcomes for very low- or low-income households, the homeless, veterans, and people with disabilities.
Applicants must demonstrate policy barriers exist, publish a plan, solicit public comments, and address those comments in a final plan. Data collection and reporting would accompany grant activities.Funding is substantial: the Technical Assistance Program would start with $25 million in 2026 and $10 million annually from 2027 through 2031, while Challenge Grants are authorized at $50 million per year for 2026–2031, with up to 10% of that amount allowed for administrative costs.
The bill directs consultation with the Partnership Center and other federal agencies to inform the programs and ensure dissemination of resources.
The Five Things You Need to Know
The bill creates a two-program framework (Technical Assistance and Challenge Grants) to expand affordable rental housing on faith- or campus-owned property.
Definitions anchor the program: affordable housing is 30% of income; eligible households are capped at 100% AMI; faith-based organizations include entities assisted by the Partnership Center.
Grant priorities target households at or below 60% AMI, including those who are homeless, Veterans, and people with disabilities.
Funding is multi-year and explicit: TA program starts at $25M in 2026 with $10M/year thereafter; grants total $50M/year 2026–2031.
Applicants must demonstrate barrier-removal policies, publish plans for public comment, and report data to the Secretary for monitoring.
Section-by-Section Breakdown
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Definitions for Subtitle G
This section sets the baseline terms that govern the programs. Affordable rental housing is defined as housing with rent no higher than 30 percent of a covered household’s income. A covered household is one with income at or below 100 percent of the area median income. The terms for homelessness, extremely low-income families, and housing on property owned by faith-based organizations and institutions of higher education are anchored to existing federal definitions, ensuring consistency with current housing programs. The definition of faith-based organization relies on the Secretary’s interpretation, and includes organizations assisted by the Partnership Center. The section also names the Partnership Center and links it to the overall program, and it defines institutions of higher education and other terms used throughout the subtitle.
Technical Assistance Program
The Secretary must establish a program to provide technical assistance to faith-based organizations, institutions of higher education, and local governments to remove barriers to producing and preserving affordable rental housing on their property. The program’s content includes guidance on utilizing excess property, developing housing for households at or below 60 percent AMI, housing for the homeless or at risk of homelessness (including veterans), accessibility for people with disabilities, intergenerational housing as contemplated by related law, and housing for other special needs groups. It also covers best practices for development processes and for State and local governments to reduce barriers, with an emphasis on well-resourced areas of opportunity. The Secretary must consult with the Partnership Center and other federal agencies, disseminate resources publicly, and provide funding to carry out these activities.
Challenge Grants to Remove Barriers
This section creates a competitive Challenge Grant program to fund eligible grantees (local governments, States, metropolitan planning organizations, and multi-jurisdiction entities) that implement policies designed to remove barriers and increase affordable housing on faith- or college-owned property. Applicants must show implemented barriers removal policies, publish and solicit comment on a grant use plan, and incorporate public input into a final plan. Preferences go to proposals that target households below 60% AMI in well-resourced areas, include housing for extremely low-income families, veterans, accessible housing for people with disabilities, intergenerational housing, and other special needs. Eligible uses include policy assessment and reform, outreach and technical assistance, grants or loans for eligible projects, and other activities aligned with the subtitle’s goals. Applicants must report results and how funds were used.
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Explore Housing in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- Faith-based organizations gain capacity to convert or repurpose their property for affordable rental housing, expanding usable assets.
- Institutions of higher education can leverage surplus or underused campus property for community housing solutions.
- Local governments and state agencies receive targeted tools and funding to reduce zoning, permitting, or other barriers to housing production.
- Households at or below 60% of AMI, including those at risk of homelessness or experiencing homelessness (and veterans), gain access to new or preserved affordable units.
- People with disabilities and intergenerational households become eligible for more accessible and varied housing options.
Who Bears the Cost
- The federal government commits to multi-year appropriations for TA and grants, representing taxpayer funding that supports the programs.
- Grant recipients must meet reporting and compliance requirements, creating ongoing administrative overhead and coordination.
- Local governments may need to adjust land-use, zoning, and permitting processes to enable project development, potentially impacting timelines and local planning resources.
- Faith-based organizations and colleges may incur oversight obligations and alignment costs to ensure nondiscrimination and accountability.
- Communities near funded projects may bear costs during construction and transition as housing stock is created or preserved.
Key Issues
The Core Tension
The central dilemma is whether a program that uses faith- and campus-owned property to expand affordable housing can achieve broad, non-discriminatory access while navigating concerns about religious influence and resource concentration in specific areas.
The bill presents a pragmatic approach to expanding affordable rental housing by leveraging faith-based and educational properties, but it raises important policy questions. Using federally funded assistance to help faith-based organizations build or preserve housing could raise concerns about the separation of church and state, even as the program anchors activities in nondiscrimination and transparent planning.
Policymakers will want to watch for how the program balances religious affiliation with universal access to housing, and whether partnerships with campuses and faith groups disproportionately benefit certain communities over others.
A second tension is the reliance on well-resourced areas of opportunity. While the bill prioritizes low-income households, the emphasis on well-resourced areas may influence project locations and market dynamics in ways that could perpetuate disparities if not carefully monitored.
Effective implementation will require robust data collection, clear performance metrics, and credible public input processes to ensure plans reflect community needs.
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