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NH Diocese Clears Legal Hurdle for Affordable Housing Project

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The Episcopal Church of New Hampshire announced April 29 that TD Bank, acting as trustee of a parish property, had agreed to settle a lawsuit filed against it by the diocese. While no money changed hands, the settlement allows Christ Church in Portsmouth and the diocese to proceed with building affordable housing and other facilities on the church property.

Earlier, a bank official had withheld consent for the project, arguing that the proposed development was not ecclesiastical in nature and conflicted with the donor’s original intent.

“We’re thrilled. We’re relieved,” said Benge Ambrogi, the diocese’s CFO and project leader. “We are just very happy that they’ve consented that what we’re doing is indeed ecclesiastical, and fits within our mission.”

In January 2024, the diocese and Christ Church, the Portsmouth Housing Authority (PHA), and the nonprofit HAVEN announced an urban development initiative. The final build will include 44 affordable housing units, a childcare center, HAVEN’s new headquarters, and six transitional housing units for survivors of domestic and sexual violence.

HAVEN, New Hampshire’s largest violence prevention and support agency, had been searching for property in Portsmouth since 2018 to expand its space and transitional housing.

“We had almost given up on Portsmouth when this amazing opportunity was given to us by the diocese,” HAVEN executive director Kathy Beebee told TLC via email. “We are currently paying a high-cost lease for space we have outgrown.”

One of the diocese’s claims was that TD Bank had allegedly violated the Fair Housing Act by declining consent, given that the future tenants would include families from underrepresented and underprivileged backgrounds.

The 3.5-acre land parcel was donated to the parish by John Elwyn Stone after a fire destroyed the church’s original 19th-century structure in 1963, forcing it to move to a new location and rebuild. The deed stipulated that the property be used exclusively for ecclesiastical purposes. Stone, a descendant of New Hampshire’s first governor, John Langdon, died in 1974.

Because TD Bank is the trustee of the John Elwyn Stone Trust, its consent was required due to the legal complexities of the land title. The Portsmouth Planning Board approved the project in August 2024 with strong community support.

From left: Craig Welch, executive director of Portland Housing Authority; Betty Lane, executive council, Christ Church; Steve Falci, pastoral leader, Christ Church; Kathy Beebe, executive director, HAVEN | Episcopal Church of New Hampshire

“This project is consistent with the time-honored tradition of the Christian Church, practiced in the name of Christ, … to build hospitals, provide sanctuary when violence is threatened, construct schools … and bury the poor with honor and dignity,” Bishop Rob Hirschfeld wrote in a memo included in the lawsuit.

He described the proposed development as a “clear and direct fulfillment of our religious commitments expressed by Jesus Christ.”

According to the diocese, the bank changed its position after reviewing new information. A TD Bank spokesperson told The Boston Globe it was pleased that “a positive resolution for all parties has been achieved.”

“The PHA is resolved to continue fighting for the people in our community who are desperate for affordable housing options,” said Craig Welch, executive director. “The positive resolution of the lawsuit bolsters our resolve to complete this project.”

Housing affordability remains a growing concern nationwide. In Portsmouth, a city of around 20,000 people, an unmet need for nearly 3,000 rental units and 227 owner-occupied units is projected by 2030.

Construction on the site is expected to begin this fall, with completion set for spring 2027.

Meanwhile, another parish named Christ Church in Toms River, New Jersey, faces a similar legal battle of its own. The local zoning board in Toms River objected to the church’s claim that the 17-bed homeless shelter it planned to build on its property was an extension of its religious activities. The conflict has escalated, and now the town council and mayor seek to acquire the church property through eminent domain to demolish it and build a park.

Housing-focused partnerships are gaining momentum within the Episcopal Church, G. Jeffrey MacDonald reported earlier for TLC.  It’s a way of stabilizing church finances by providing ground lease to developers while repurposing underutilized land in high-density areas where affordable homes are desperately needed.

Caleb Maglaya Galaraga is The Living Church’s Episcopal Church reporter. His work has also appeared in Christianity Today, Broadview Magazine, and Presbyterian Outlook, among other publications.

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