FOLSOM – Folsom City Council unanimously approved a resolution Tuesday night to allocate up to $810,000 in housing funds to Habitat for Humanity of Greater Sacramento. The funding will support construction of 10 new affordable for-sale homes on Persifer Street, a project years in the making.
The resolution, passed during Tuesday’s meeting, authorizes the use of Permanent Local Housing Allocation (PLHA) funds received through Sacramento County to help bridge a critical funding gap in the Persifer Street Project. The future homes will be located on a 0.91-acre parcel at the northeast corner of Persifer and Coloma Streets, within Folsom’s Historic District.
The site was originally approved for surplus sale by the city in 2021 with the specific intention of developing affordable housing. Since then, Habitat for Humanity has worked with city staff and community stakeholders to advance the 10-unit project. The design was approved by the Historic District Commission in August 2024.
While the city had previously authorized $800,000 in federal HOME funds in 2022 for construction, Habitat was ultimately unable to use those funds due to regulatory restrictions on for-sale housing projects. That shortfall left a significant funding gap for the nonprofit developer.
In response, city staff proposed the use of PLHA funds as a solution. The PLHA program, created by California Senate Bill 2 in 2017, provides ongoing funding to local governments to address housing needs. Folsom’s five-year allocation is estimated at approximately $807,692, with $439,703 already received and available in the city’s Housing Fund.
“The Persifer Street Project is a uniquely qualified and timely opportunity to provide affordable, detached homes for purchase within our city—a type of housing we simply don’t have enough of,” said Community Development Director Pam Johns in the staff report presented to the council.
According to city documents, the homes will be targeted to low- and very low-income households and are aligned with Folsom’s adopted housing element goals. Specifically, the project supports the city’s goal to facilitate housing opportunities for residents across all income levels.
Habitat for Humanity must now enter into a grant agreement with the city before funds are disbursed. The project is exempt from environmental review under the California Environmental Quality Act, streamlining its path to development.
With funding now secured, Habitat for Humanity is expected to move forward with the next phases of the project, which will bring long-term homeownership stability to 10 families in the Folsom community.
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