My town bought an old catholic church in the 1960's for K.H. use. No one seemed to have a problem with it at the time. In the 1970's it was even too small for the 100 plus who attended so they tore it down and built a K.H.
I recall as a kid one KH that was an old church. You could tell it was an old church by the style of it. Not sure if is still a KH as I think the building is still there. They probably sold it to buy a bigger piece of land. Your right I can't see them doing that now a days.