The Faith in Housing Act of 2025 seeks to address the national housing crisis by preempting state and local laws that impede the construction of affordable housing on land owned by religious institutions. Congress finds that a significant housing shortage exacerbates inequality and homelessness, and current land use regulations often obstruct houses of worship from fulfilling their charitable missions to provide shelter and support to low-income individuals. Under this Act, a house of worship that owns faith land (real estate owned by them since January 1, 2023, or for at least five years) can elect to construct or substantially rehabilitate affordable housing on its property. This housing must comply with building codes, be deed-restricted to be affordable for low-income families (averaging affordability for those at 80% area median income, with all units at or below 140% AMI), and remain affordable for 30 years. It may also include limited non-residential uses and a small percentage of units for employees, while adhering to fair housing laws and being managed by a nonprofit property manager. Upon notifying local authorities, the house of worship gains sole discretion over such construction, preempting inconsistent state or local regulations. However, regulations narrowly tailored to prevent site-specific hazards (like floods or wildfires) and applied equally to all residential construction are not preempted. The bill allows for reasonable inspection by state or local authorities to ensure compliance with affordable housing requirements and establishes a cause of action for violations, including the recovery of attorneys' fees.