Folsom City Council approves $2.7M affordable housing loan revisions for Harrington Grove project

In the heart of Folsom City Hall, council members gathered on March 25, 2025, to address pressing community needs, including critical infrastructure upgrades and affordable housing initiatives. The evening's discussions highlighted the city's commitment to efficiency and support for its growing population.

One of the key topics was the procurement of essential filters from NorSystems, the exclusive provider in California. City officials emphasized the importance of securing these filters ahead of time to minimize service disruptions. With a lead time of four months, the council approved a resolution to purchase the filters, ensuring they would be on hand to prevent downtime during peak service periods. This proactive approach aims to maintain uninterrupted services for residents, particularly during the busy holiday season.

The meeting also spotlighted the city's ongoing efforts to expand affordable housing. Stephanie Henry from the Community Development Department presented a revised loan proposal for the Harrington Grove project, which aims to construct 52 affordable housing units. Originally approved for a $2.7 million loan, the project faced a funding gap due to strategic decisions made by the developer regarding state tax credits. To bridge this gap, the developer proposed partnering with private investors, which necessitated changes to the loan repayment terms. The council agreed to reduce the repayment obligation from 50% to 25% of the project's residual cash flow, a move deemed reasonable by city staff and consultants.

This adjustment is expected to facilitate the project's progress without impacting the city's general fund, reflecting Folsom's dedication to addressing housing shortages while navigating the complexities of funding in a competitive landscape. As the council members voted in favor of the revised terms, it was clear that Folsom is taking significant steps to ensure its residents have access to affordable housing options.

With these discussions, the Folsom City Council reaffirmed its commitment to enhancing community services and supporting sustainable development, setting the stage for a more resilient future for its residents.