Episcopal Diocese of Pennsylvania Partners with Developer to Convert 26 Churches into Housing

The Transformation Initiative aims to generate revenue for parishes while preserving community space.

Published on Mar. 10, 2026

The Episcopal Diocese of Pennsylvania has selected The Michaels Organization to evaluate repurposing 26 Philadelphia-area churches, a plan that could yield over 1,000 housing units. The initiative, called the Transformation Initiative, is a diocesan-wide effort to help congregations rethink underused buildings and escape mounting maintenance costs by converting them into a mix of housing and community space.

Why it matters

Church conversions are not new in Philadelphia, but they often face challenges with zoning, historic preservation, and neighborhood concerns. This partnership aims to navigate those hurdles while generating steady revenue to support parish ministries and keep congregational life intact.

The details

The Michaels Organization will serve as a development consultant on a diocesan-wide master plan and act as the developer on select sites, bringing in architecture and planning firms to handle design work and community outreach. The revenue-sharing model is meant to ensure parishes see financial benefit without having to become real estate experts.

  • The Episcopal Diocese of Pennsylvania has flagged 26 properties for evaluation.
  • The diocese estimates the partnership could yield over 1,000 housing units across Philadelphia and four collar counties.

The players

Episcopal Diocese of Pennsylvania

The diocese overseeing the Transformation Initiative to repurpose underused church properties.

The Michaels Organization

A national developer selected by the diocese to serve as a development consultant and act as the developer on select sites.

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What’s next

The partners will move one property at a time, drafting a master plan, lining up community engagement and financial analysis, then deciding which sites advance to full development proposals.

The takeaway

This partnership aims to navigate the challenges of church conversions in Philadelphia, such as zoning and historic preservation, while generating revenue to support parish ministries and preserve community space.