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Council authorizes $615,000 reimbursement to capital fund for discounted sale to Habitat for Humanity
Summary
Council approved transferring $615,000 from the Folsom Housing Fund to the Capital Facilities Fund to reimburse a general‑fund subsidy tied to the discounted sale of city property at 300 Percifer Street to Habitat for Humanity for Greater Sacramento.
The City Council on Oct. 14 approved a resolution to reimburse the general fund by transferring $615,000 from the Folsom Housing Fund to the Capital Facilities Fund. The transfer recognizes the difference between the property's pre‑subdivision estimated market value and the discounted price Habitat for Humanity paid when the city sold the 300 Percifer Street site for an affordable, for‑sale housing project.
Pam Johns, Community Development director, explained the background: the city declared the 300 Percifer site surplus in 2020 specifically to enable a for‑sale affordable housing project and selected Habitat for Humanity through a competitive process. The city accepted a reduced sale price to allow Habitat to develop 10 for‑sale affordable homes (subdivided into five parcels) under Habitat's financing model. "The Habitat model is really to receive the land almost at little or no cost in order for them to successfully achieve their model," Johns said.
Johns told council the city originally accepted a $10,000 purchase price on a parcel the staff estimated at $625,000 pre‑subdivision; the $615,000 transfer repays that difference from the legally restricted Housing Fund, which the city holds at about $23 million. Johns said using the Housing Fund for this qualifying expense aligns with the fund's legally restricted purpose to finance affordable‑housing activities.
Councilmember questions covered whether the arrangement would be repeated for future surplus‑land transfers and the mechanics of using housing funds for land subsidies. Johns said the city's larger Housing Fund balance going forward gives the city new flexibility to support a range of affordable‑housing solutions, and that transfers would be handled on a case‑by‑case basis consistent with fund eligibility.
The council approved the resolution unanimously on roll call.
Votes at a glance: Res. No. 11467 — approve transfer of $615,000 from Folsom Housing Fund to Capital Facilities Fund — Passed 5–0 (Leary: yes; Raffel: yes; Rorba: yes; Kozlowski: yes; Aquino: yes).
