City Council approves agreement expected to provide about $228,000 annually for housing assistance, accessibility projects and renter support services
FOLSOM – The Folsom City Council unanimously approved an agreement Tuesday night that will keep the city participating in a regional federal grant program through the end of the decade, preserving approximately $228,000 annually for senior home repairs, accessibility improvements and housing assistance services.
The council approved a cooperation agreement with the Sacramento Housing and Redevelopment Agency (SHRA) that allows Folsom to continue participating in the federal Community Development Block Grant (CDBG) Program, as well as related HOME Investment Partnerships and Emergency Solutions Grant programs, from Jan. 1, 2027 through Dec. 31, 2030.
The action extends a longstanding partnership that has provided federal funding to Folsom since 1987 and ensures continued support for programs that primarily benefit seniors, residents with disabilities and low- to moderate-income households.
According to the staff report, the city’s current agreement with SHRA expires Dec. 31, 2026. To remain eligible for future funding, the city was required to approve a new cooperation agreement and submit documentation to SHRA before a federal deadline later this summer.
The largest beneficiary of the funding is Folsom’s Seniors Helping Seniors Home Repair Program, which provides grants to help older homeowners address health and safety concerns in their homes. The program currently receives approximately $200,000 annually from the city’s CDBG allocation.
The program offers minor repair grants of up to $5,000 per household and major repair grants of up to $12,000 for owner-occupied senior housing units. Since its launch in 2012, approximately $2.3 million has been invested through the program, benefiting more than 300 senior households throughout Folsom.
In addition to senior home repair assistance, the city allocates $10,000 annually toward the regional Renter’s Helpline program, which provides free tenant-landlord counseling, mediation assistance and referrals aimed at resolving housing disputes and improving housing stability.
Remaining funds are typically directed toward Americans with Disabilities Act accessibility improvements and other eligible community development projects. The report noted that unspent funds may be accumulated over several years and used for larger projects. In 2025, for example, the city combined leftover allocations from multiple years to fund approximately $42,000 in ADA improvements along Glenn and School streets.
According to city staff, Folsom currently receives a gross annual allocation of approximately $298,520 through the Sacramento Urban County program. After SHRA administrative costs and the city’s contribution to the Renter’s Helpline program, approximately $228,816 remains available annually for local programs and projects.
As part of the agreement renewal process, city officials also evaluated whether Folsom should leave the SHRA-administered program and become its own independent federal grant entitlement jurisdiction. Because Folsom’s population exceeds 50,000 residents, the city qualifies for direct federal funding from the U.S. Department of Housing and Urban Development.
A consultant analysis prepared for the city found that direct entitlement status could potentially increase Folsom’s annual allocation from roughly $300,000 to about $380,000. However, staff concluded that the additional funding would likely be offset by significant new administrative requirements and staffing costs.
The study found that operating an independent program would require the city to assume responsibility for environmental reviews, financial management, federal reporting, compliance monitoring and long-range planning activities currently handled by SHRA. City staff estimated that additional personnel or consultant support would likely be required, along with increased workload for the Finance Department and City Attorney’s Office.
The report also noted that many CDBG administrators consider annual allocations of at least $500,000 necessary to efficiently operate an independent entitlement program. Folsom’s projected allocation would remain well below that threshold.
Staff further concluded that entitlement status would provide limited additional flexibility because relatively few areas of Folsom qualify under federal low- and moderate-income benefit requirements, restricting the types of projects eligible for funding.
Another factor in the city’s review involved Senate Bill 802, legislation that originally proposed consolidating various housing funding sources into a regional joint powers authority to address homelessness in Sacramento County. According to the staff report, the bill was later amended to clarify that local jurisdictions would retain control over local, state and federal housing funds, reducing concerns that Folsom’s future access to federal grant dollars could be affected.
Based on its findings, city staff recommended remaining in the Sacramento Urban County consortium and continuing to rely on SHRA’s established administrative structure.
The staff documents concluded that continuing participation in the regional program remains the most cost-effective option for Folsom, allowing the city to maintain federal funding for local housing and accessibility programs without creating additional staffing burdens or impacts to the city’s General Fund.
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