How a Chapel Hill Church Built 3 Tiny Homes

And how their model is spreading.

May 06, 2025

Small Homes, Big Impact | Triangle Community Foundation

For the first eleven years of their existence, the Episcopal Church of the Advocate in Chapel Hill, North Carolina, was a nomadic congregation. They moved around, worshipping in synagogues, other churches, and community centers before finally buying fifteen acres of land in 2014, placing a 100-year-old Carpenter Gothic chapel from a nearby town onto the land. It didn't take long before the small but mighty congregation became eager to do more with their space.

Their minister at the time, Reverend Lisa Fischbeck, was approached by four recent graduates of the nearby University of North Carolina who had worked with the local homeless population. Their proposition was a simple one, but it struck a chord.

The Church of the Advocate would be the perfect host for a few tiny homes.

“They had this idea of building tiny homes on church property that would provide a sense of community and dignified affordable housing,” Rev Fischbeck recalls. “We'd always said that if we ever have land and building, it'd be for the good of the community and not just for ourselves. That's why our governing body was really quick to just say ‘yeah let's see if we can do it.’”¹They began exploring possible designs, and decided that they had the capacity to do three homes.

It didn’t take long to run into a few challenges. First, the Episcopal diocese didn’t fully understand their vision. Since the land was owned by the diocese rather than the church directly, there were concerns about how the homes might impact property values. Somewhat understandably, church leadership wanted to be prepared for the worst-case scenarios and needed to the final plans to mitigate those risks as much as possible. It took awhile to convince them, but ultimately they gave the project their full support and even contributed financially.

The second major challenge was funding. They initially estimated that they would need $120,000 to build three tiny homes, but the final cost slowly increased to nearly $170,000. To raise the money, the four recent graduates helped the church establish a separate nonprofit to handle fundraising, with Rev. Fischbeck chairing the board.

The homes under construction. Image from Raleigh News & Observer

They first approached the town of Chapel Hill, explaining their mission and the nonprofit experience of those involved. The town responded positively, ultimately agreeing to give them a grant of $70,000. A business professor at UNC heard about the project and started a fundraiser through one of his classes, which raised another $35,000. The rest of the funding came from the Diocese of North Carolina, which gave $10,000, and various family foundations and philanthropists in the area.

Once they had raised the money and obtained the necessary permits, construction began. New obstacles didn’t take long to emerge. They discovered that the property had been used as a dump a century earlier. Though the waste was buried ten feet underground and did not pose any risks, it did mean that they had to dig the footers deeper, something that cost $30,000. Chapel Hill’s stringent fire codes also posed a few issues, but each roadblock was successfully navigated and residents moved in in June of 2019, an impressively short four years after their journey began.

Three individuals earning less than 30% of the area median income now call them home, giving some of Chapel Hill’s most vulnerable residents both a roof over their head and a community that cares for them. Each resident pays one-third of their monthly income in rent, with the funds split between management costs and a resident’s equity fund.

In this photo provided by The Rev. Lisa G. Fishbeck, Nathaniel “Pee Wee” Lee sits outside his home in Chapel Hill, N.C., on May 23, 2022. Fischbeck led the Episcopal Church of the Advocate when it added three one-bedroom units on its 15-acre campus. The first residents, including Lee, moved into them in June 2019. Before that Lee, 78, had spent years sleeping in alleys, cardboard shelters and cars after medical issues ended his bricklaying career. (The Rev. Lisa G. Fishbeck via AP) — Resident Nathaniel “Pee Wee” Lee sitting outside of his home. Image from the AP

Each of the tiny homes is approximately 320 square feet—about the size of two parking spaces. Cleverly designed large windows and lofted ceilings manage to create a sense of spaciousness. Despite their small footprint, they are fully equipped with a bedroom, bathroom, living room, and kitchen. One unit is even ADA accessible, allowing residents to age in place.

The nonprofit created for the project has since expanded its model, using the Church of the Advocate project as a blueprint for future developments. Named after one of the original residents, Pee Wee Homes has since built two additional similar projects nearby.

Projects like this exemplify the best of faith-based housing.

Not only do they provide shelter for those in need, but they also foster community and a sense of belonging. Pee Wee Homes has demonstrated a relatively affordable and efficient model for housing that could be replicated nationwide. If even a few houses of worship in each city follow the example set by the Church of the Advocate, we have the potential to dramatically increase the housing supply across the country.