EASTON, Pa. -- City leaders have limited their association with a faith-based nonprofit agency, with at least one city council member expressing the opinion that work should go to groups not affiliated with an organized religion.

According to a report in The Express-Times, Shiloh Community Services, Inc., the 29-year-old nonprofit arm of Shiloh Baptist Church, rehabilitated old houses and provided affordable housing to first-time homebuyers through its association with the city's redevelopment authority.

With bank financing, the organization built Shiloh Estates, a development of two-unit duplexes near the church and Shilo Manor, a 58-unit senior housing development. Shiloh later entered into the agreement with the authority to rehabilitate several houses Shiloh bought. The authority gave Shiloh $204,000 for the those projects.

Most recently, Shiloh anticipated rehabilitating three homes and a three-unit complex the authority bought in February, according to the news report. But, the authority only gave Shiloh one of the properties and is seeking nonprofit agencies outside of Easton.

"As a whole, I don't support faith-based initiatives and I think it was a bad idea by (President George W.) Bush," said councilman Mike Fleck. "Every time you mix church and state, you have a problem. If you're providing a social service, you may also be pushing some sort of religion, no matter what that religion is. I think you always have that in the back of your mind."

The Rev. Fred Davis, pastor at Shiloh, told the newspaper he is confused over the debate about faith-based initiative programs that partner governments with religious organizations -- an idea launched from the White House.

"Why after 29 years do they say that we can't do it?" he asked. "Is it because of who we are or what we are? Or where we come from and what we believe?"

Shiloh officials say their nonprofit agency, which handles the housing programs, is legally required to make housing available to anyone. They say they keep their church business separate from the nonprofit division. Their counseling and redevelopment programs are available to anyone who is interested regardless of their religion, the newspaper reported.

Shiloh officials are upset about the delays they say have prevented people from moving into homes.

"If they had released those properties we could have had them mostly completed or maybe in some cases completed," Davis told the newspaper. "There's no justification for hindering the process of progress and keeping hardworking people out of homes."