New York City and State cut the ribbon Thursday on phase one of a 2,000 unit, 100 percent affordable housing development on a church parking lot in Brooklyn. Could church-owned housing projects see a resurrection in New York?

The city cut the ribbon on the first phase of a nearly 2,000 unit, 100 percent affordable housing development Thursday on a large East New York church parking lot.

The development, Innovative Urban Village, will see 10 apartment buildings, along with a new grocery story, child care center, and performing arts venue rise on the campus of the Christian Cultural Center at Flatlands and Pennsylvania avenues near Starrett City.

A half dozen local, state, and national elected officials gathered to celebrate the opening of the first phase of the project Thursday, which included 385 units of affordable housing.

But efforts to unlock more housing projects on land owned by churches and religious institutions have stalled in the state legislature—and may be due for resurrection.

Christian Cultural Center (CC) Pastor A.R. Bernard conceived the Urban Village project idea back in 2016, around when large swaths of East New York were rezoned .

"Today represents the manifestation of a dream held dear," said Bill Wilkins, executive director of the Local Development Corporation of East New York.

Like many affordable housing projects, the road was bumpy. A collaboration between CCC and the Gotham Organization, the plan went through the city’s often contentious land use review process, called ULURP.

"Most developers promise the community the world when we're going through ULURP. Then, after they get their approval, they start to back it up. Pastor Bernard didn't back it up. He doubled down," said Wilkins, who added that the project created construction jobs and job training for community members.

Years of community conversations focused on how to create those jobs, and new affordable housing, without causing gentrification and displacement. The zoning application passed the City Council in 2022.

"Because only God could touch the hearts of key individuals who had the power to say no, and some did. And I watched hearts change and transform," added Bernard.

ULURP has been the target of recent reforms in New York City, like a new affordable housing fast track and affordable housing appeals board , which seek to speed up new projects and skirt City Council approval when local reps stand in the way of development.

"I think you're seeing some of the shift in terms of a willingness to set statewide parameters, while still being respectful of local concerns, but not having local concerns be veto points in the construction of new affordable housing," said Brooklyn State Sen. Andrew Gounardes in an interview.

A proposal from Gounardes in the state legislature, the Faith-Based Affordable Housing Act , would see new affordable housing projects on church land avoid ULURP altogether if developments include around 25 percent affordable housing.

Despite a multi-year push from pro-housing groups and a coalition of faith leaders, Gov. Kathy Hochul didn’t include the measure in her last two state budgets. The bill failed to advance out of committee, with some lawmakers citing concerns about preserving the character of existing church sites and enabling large developments.