Faith in Housing Act of 2025
- Sponsor
- Rep. Peters, Scott H. [D-CA-50]
- Committees
- Financial Services Committee (primary)
- Last action
- Sep 26, 2025
Bottom line
The 'Faith in Housing Act of 2025' aims to accelerate affordable housing development by removing local zoning barriers for religious institutions, empowering them to address the national housing crisis through their land assets.
What it actually does
This bill preempts state and local zoning laws that restrict the construction or substantial rehabilitation of affordable housing on land owned by religious organizations. It grants houses of worship the sole discretion to develop such housing, provided it meets specific federal building code, affordability, and management criteria, and either affects interstate commerce or uses federal assistance. The bill also establishes a cause of action for violations and allows for reasonable state and local inspections.
Proponents argue
Proponents argue that the bill directly addresses the severe housing shortage and rising costs by unlocking underutilized land owned by houses of worship, which are often deeply committed to charitable activities and supporting vulnerable populations. They contend that current land use regulations often obstruct these faith-based efforts to provide shelter and affordable homes, and that this bill empowers religious organizations to fulfill their missions more effectively while contributing to a critical national need.
Opponents contend
Opponents may contend that this bill represents an undue federal intrusion into local land use authority, undermining the ability of communities to plan their development, manage infrastructure, and preserve neighborhood character. They might raise concerns about potential impacts on local tax bases, the adequacy of oversight for the 'affordable housing' definition, and the precedent of broadly preempting local zoning for specific types of developers, even if well-intentioned.
The bill is concise and relatively straightforward, allowing an informed reader to grasp its core provisions within the estimated reading time.
Section 1
Short Title
This section formally names the bill the 'Faith in Housing Act of 2025.' This title provides a concise and recognizable name for the legislation, reflecting its primary focus on enabling faith-based organizations to contribute to housing solutions.
Supporters argue
Supporters argue that a clear and descriptive short title helps communicate the bill's purpose and facilitates public and legislative discourse around its objectives.
Critics contend
No specific opposition is typically raised against the short title of a bill, as it is primarily for identification.
Tradeoffs
None inherent in the short title itself.
Section 2
Congressional Findings
This section outlines Congress's rationale for enacting the bill, citing a national housing shortage, rising costs, increased homelessness, and the obstruction of charitable housing efforts by houses of worship due to land use regulations. It asserts that housing construction affects interstate commerce, justifying federal intervention.
Section 3(a)(1)
Definition of Affordable Housing
This provision defines 'affordable housing' for the purposes of the Act. It requires compliance with building codes, deed restrictions for affordability (average cost for low-income families, all units at or below 140% area median income), a 30-year affordability commitment, limited non-residential uses (e.g., childcare), a small allowance for employee housing (up to 5% or one unit), compliance with the Fair Housing Act (without the religious exemption), and, for rentals, management by an experienced nonprofit property manager.
Section 3(a)(2) and (3)
Definitions of Faith Land and House of Worship
This section defines 'faith land' as real estate owned by a house of worship on or before January 1, 2023, or owned for at least five years. A 'house of worship' is defined by reference to section 170(b)(1)(A)(i) of the Internal Revenue Code of 1986, meaning a church or a convention or association of churches exempt from tax under section 501(a) of such Code.
Section 3(b)(1)
Preemption of State and Local Land Use Laws
This core provision grants the owner of faith land the sole discretion to construct or substantially rehabilitate affordable housing on their land, upon written notice to the applicable state or local zoning authority. This authority applies if the housing is in or affects interstate or foreign commerce, or if it is constructed using Federal assistance, effectively preempting conflicting state and local land use regulations.
Section 3(b)(2)
Limitations on Preemption and Inspection Rights
While preempting inconsistent state and local laws, this provision carves out an exception: laws narrowly tailored to prevent 'site-specific hazards' (like floods or wildfires) that apply equally to all residential construction are not preempted. Additionally, state or local governments retain the right to reasonably inspect affordable housing built under this Act to confirm compliance with the defined requirements.
Section 3(b)(3) and (4)
Cause of Action and Attorneys' Fees
This section establishes that a person can assert a violation of this Act as a claim or defense in a judicial proceeding to obtain injunctive or declaratory relief. It also amends Section 722(b) of the Revised Statutes (42 U.S.C. 1988(b)) to include the 'Faith in Housing Act of 2025,' allowing for the recovery of attorneys' fees in successful actions.
The definition of 'affordable housing' explicitly states that housing developed under this Act 'shall otherwise comply with the Fair Housing Act (42 U.S.C. 3601 et seq.) without regard to 42 U.S.C. 3607.' Section 3607 of the Fair Housing Act generally provides an exemption for religious organizations from certain anti-discrimination provisions when operating housing for non-commercial purposes. By disregarding this exemption, the bill mandates that housing built on faith land under this Act cannot discriminate based on religion, except for the specific allowance of setting aside units for employees of the house of worship.
Section 3(a)(1)(E)
Why it matters:This is likely standard legislative practice for incorporating existing legal frameworks by reference and specifying exceptions. It ensures comprehensive application of anti-discrimination laws while acknowledging the unique context of religious organizations.
Case for: Supporters would argue that this ensures the housing truly serves the public good by being accessible to all, regardless of religious affiliation, aligning with broader anti-discrimination principles and preventing potential misuse of the religious land use privilege.
Case against: Some religious organizations might argue that this provision limits their religious freedom to prioritize members of their own faith community in housing initiatives, although the bill does allow for employee set-asides.
Estimated impact: This provision ensures that potentially thousands of new affordable housing units developed on faith lands will be subject to full Fair Housing Act protections, preventing religious discrimination in tenant selection (beyond employee units).
The definition of 'affordable housing' requires that the housing 'will remain affordable, according to binding commitments, for 30 years from construction or substantial rehabilitation, without regard to the term of the mortgage or to transfer of ownership.'
Section 3(a)(1)(C)
Why it matters:This is a common legislative technique to ensure the long-term impact of affordability requirements. It is a technical detail that ensures the policy's intent is maintained over time, rather than an attempt to hide it.
Case for: Proponents would highlight this as a crucial safeguard, ensuring that the affordable housing created through this Act provides lasting benefits to communities and is not quickly converted to market-rate housing, thereby maximizing the public investment and policy impact.
Case against: Some developers or religious organizations might find the 30-year commitment a significant long-term obligation that could complicate future property management or financial planning, potentially deterring some projects.
Estimated impact: This provision ensures that any housing units developed under this Act will contribute to the affordable housing stock for at least three decades, providing long-term stability for residents and communities.