Federal District Judge Claude Hilton in Virginia has thrown out a suit challenging the constitutionality of a public housing project adding units on top of an existing church sanctuary and building. The Plaintiff argued that tax money going to expand the facility were also being used to renovate the sanctuary and other structures used for religious purpose. Hilton was not convinced.
From the opinion in Glassman v. Arlington County (via 2010 U.S. Dist. LEXIS 35745)
The County's…loan is for the housing project, not for the construction of a new sanctuary or other religious facilities of [First Baptist Church Clarendon]. Plaintiff admits that the County loan will fund "the development of rental apartment units," but attempts to cast doubt on this by stating the County "purports" to be funding the apartments, and that funding "will also be used to supplement the building of FBCC sanctuary and other religious-based facilities." . . . .
Although Plaintiff speculates that the loan proceeds will also be used for the construction of FBCC facilities, the only pertinent factual allegation is that 1210 N. Highland paid FBCC $ 5.6 million "for the purchase of the Church's property." There is no legal prohibition on a church's ability to sell its property for fair market value, and although Plaintiff complains that much of the Property's value was a product of the 2007 rezoning, there is nothing remarkable about that economic effect. In fact, the County Board's 2007 rezoning actions were challenged and upheld in the Supreme Court of Virginia, and the Amended Complaint does not claim that the Property's zoning is inappropriate or unreasonable. Furthermore, there is nothing improper about using the proceeds of an AHIF loan to acquire land for such a project…
An appeal to the 4th Circuit is expected, according to this report from the Washington Post.