Taking its inspiration from national legislation known as Yes in God's Backyard, House Bill 59 opens the door for religious organizations to construct affordable housing without being subject to rules governing typical developments.
"It allows for churches to build on their property, build affordable housing, and circumvent local zoning laws like parking requirements and size of the apartments, but still have to follow the building codes," sponsor Sen. Jimmy Higdon explained.
With church property not being taxable, it would be a "savings" for the developer, according to the Lebanon senator. While the bill is aimed at apartments, Higdon said nothing in the measure would prevent single family housing.
The exception raised questions about who might be able to rent.
"Religious organizations are allowed to discriminate based on their religion," speaker Destiny Kelly warned.
To that objection, lawmakers noted that the bill would require all such developments to win approval from the local governing body.
The bill now moves to the full Senate.