It happens all the time. A longtime member passes away and leaves the church their house. A neighbor donates a vacant lot next door. Over 30 or 40 years, a church can end up owning a handful of properties it never planned on.

Then those properties just sit. The roof needs work. The grass needs cutting. Somebody on the trustee board is spending Saturdays dealing with it. And the property isn't doing anything for the mission.

Here are the real options, in plain English.

Option 1: Keep it and rent it

A paid-off house can produce steady monthly income for ministry. The tradeoff is that the church becomes a landlord: repairs, tenants, insurance, and a property manager if nobody wants to answer the phone at midnight.

Know this going in: in Kentucky, church property is generally only exempt from property tax when the church both owns it and uses it. A house rented to the public will likely be taxed. Details are in our guide to taxes and fair housing.

Option 2: Sell it

Selling is the simplest option. The cash can go straight to the mission, a building project, or savings. The tradeoff is that it's gone for good. And if the property could qualify for housing under Kentucky's new law, selling gives up that option, because House Bill 333 only works when the church keeps ownership.

Option 3: Consolidate

Sometimes the smartest move is to trade scattered properties for one that does more. For example, a church might sell three houses spread across town and use the money to buy or build one property right next to the church. That makes it easier to manage, and maybe big enough to actually build on.

Option 4: Lease the land to a builder

With a ground lease, the church keeps the land and a builder puts up a building on it. The builder pays the church rent every year, often for decades, and the land comes back to the church at the end. This is how most church housing deals in the country are being done right now. It's explained step by step in our ground lease guide.

Option 5: Build something the church needs

The income from one property can pay for something the church actually wants: a gym, a fellowship hall, an auditorium, a daycare, or housing for people the church already serves. The property that's been sitting there can end up funding the thing your congregation has been praying about for years.

How to decide

Every church is different, but the questions are usually the same:

• What is each property actually worth today?
• What does it cost the church every year to hold it (taxes, insurance, repairs, volunteer time)?
• Does it qualify under Kentucky's new church housing law?
• Does the church want income, cash now, or a building it can use?
• Who has to approve it? (Your congregation, your trustees, and in many denominations a regional body too.)

The first three questions are numbers. That's the part I can answer for free.

Frequently asked questions

Does our church have to pay property tax on a house it rents out?

Probably. Kentucky's constitution exempts church property that is owned and used by the church. A house rented to the public usually doesn't meet that test. Check with your accountant and the Jefferson County Property Valuation Administrator (PVA), the office that assesses property values.

Can we use donated property for affordable housing under the new law?

Possibly, if the church owned it before January 1, 2026, keeps owning it, and it's in a qualifying location. See our House Bill 333 guide for the full checklist.

Who in the church decides what happens to the property?

It depends on your church's bylaws and denomination. In many Baptist and independent churches the congregation or trustees vote. In Methodist, Presbyterian, Episcopal and Catholic churches, a regional body usually has to sign off too.

Want a free look at your church's property?

I'm Rob Bergeron, owner of Winner Realty here in Louisville. I'll put together a free review of what your church owns: what each property is worth, whether it qualifies under the new law, and what your options are. No cost, no obligation, and I'm not asking to list anything. If it ever turns into a deal, we talk fees up front and your attorney reviews everything. The congregation always decides.

Grab a time here, or text or email me at Rob@thewinnerrealty.com.

This article is general information, not legal or tax advice. Every church should run a specific project by its own attorney, accountant and denominational leadership.