Church and nonprofit

I was recently approached by a church about writing a grant for them. They are looking to rent out some of their rooms on their property at the rate of $35 a day. Their focus is on homeless individuals and are pitching it as a transitional housing but I feel uneasy about all this as the cost is equal to (and in many cases more than) the cost of a boarding room. They are going to somehow partner with a nonprofit as well but It just doesn’t sit right with me and feels like they are trying to cover their expenses under the guise of good works. They want to meet with me to discuss details but I am curious to know if you see any red flags in this?

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