El Dorado County supervisors approve $550,150 to launch Grizzly Flats rebuild program with nonprofit partner

El Dorado County supervisors on April 7 authorized $550,150 from the county's affordable housing special revenue fund to back a homeowner rebuild program for Grizzly Flats residents displaced by the 2021 Caldor Fire.

The board's action, taken 4-0 with Supervisor Lane absent, approves a program that pairs homeowners with Homemade Sacramento, a nonprofit that will provide volunteer labor and materials (at least 50% of the estimated cost), and uses county funds as a forgivable loan to fill remaining gaps. Planning and Building Director Karen Gardner said the program is intended to construct predesigned Title 25 homes (about 750 square feet) and target roughly 12 households from the existing interest list; Homemade Sacramento volunteers and local builders will be assigned as "builder captains" for each house.

Why it matters: Grizzly Flats residents have continued to live in RVs or temporary arrangements while rebuilding has lagged. The program aims to accelerate construction before the 2026 winter season, provide a local, lower-cost pathway to permanent housing, and count the units toward state RHNA obligations, Gardner said.

How the program will work: Gardner gave numeric examples showing estimated cost per Title 25 home at roughly $146,000 and explained the funding flow: donors and Homemade Sacramento contributions reduce cash needs; participating residents place whatever funds they can into a special account; the county fills any remaining gap up to a defined per-house maximum and records a forgivable loan.

"Homemade Sacramento has agreed to contribute a minimum of 50% through volunteers of labor and materials," Gardner told the board, adding that the nonprofit has exceeded that level on similar projects elsewhere. Price Walker of Elliott Homes, who described builder participation, said construction could begin in May and the first homes could be completed by September.

Board direction and guardrails: Supervisors asked staff to add several program guardrails before final signature. The board directed staff to 1) add an income-eligibility threshold (lower-income, approximately 80% of area median income or less), 2) lengthen owner-occupancy/repayment protections from three years to five years, and 3) include explicit prohibitions on subordinating the county's deed of trust. County counsel and staff confirmed the resolution and Exhibit A will be updated to reflect those parameters and that loan and deed-restriction documents will be recorded between the county and each homeowner.

Public testimony: Multiple residents and rebuild volunteers urged the board to approve the program. "This vote today is a critical vote for 12 families," said Toby Madison, a Grizzly Flats resident, who described the social and economic value of keeping families in the community.

Vote and next steps: The board voted to adopt staff recommendations for the program and funding with the directed edits to Exhibit A (motion passed 4-0, Supervisor Lane absent). Staff will finalize MOU and loan documents, return any unused funds to the affordable housing fund after the builds, and oversee execution and reporting requirements described in the resolution.

What remains open: Staff said they will formalize eligibility criteria and deed-restriction language in Exhibit A and ensure reporting on fund use; a memorandum of understanding between the county and Homemade Sacramento will govern project administration and reporting.