This past week, leaders with the City of Folsom joined volunteers, Habitat for Humanity staff, and future homeowners to raise the walls of the first homes in a new affordable housing community in Folsom’s Historic District. The event marks a significant milestone for the project, which is transforming dreams of homeownership into reality for ten hardworking families.

“These are hardworking families that probably wouldn’t qualify for a traditional mortgage,” says Habitat for Humanity of Greater Sacramento President & CEO Leah Miller. “This is an opportunity to own their own home, build equity, and close the racial equity divide. To these families, building equity often means breaking the cycle of generational poverty.”

The development, located on Persifer Street near the heart of Historic Folsom, features 10 energy-efficient, all-electric homes designed with affordability and sustainability in mind. The mix of five single-story, one-bedroom cottages and five two-story, four-bedroom homes includes features like drought-tolerant landscaping, solar battery storage, and energy-efficient appliances to reduce utility costs.

The journey to homeownership began in July of last year when the City of Folsom announced Habitat for Humanity was accepting applications for the project. Out of 280 applicants, 10 families were selected based on income eligibility and their willingness to partner with Habitat for Humanity. Each family contributes 500 hours of “sweat equity” by working on their homes and those of their neighbors. They also complete homeownership counseling and education to prepare for the responsibilities of owning a home.

“It’s not just about building homes; it’s about building communities,” says Miller. “The families work alongside volunteers and neighbors, creating connections and a sense of pride that will last for generations.”

The homes are being sold to families earning 30% to 80% of the area median income, which ranges from $35,350 to $94,300 for a family of four. Monthly mortgage payments do not exceed 30% of the family’s gross monthly income, ensuring long-term financial stability. Families also pay closing costs and commit to attending Habitat events and homeowner meetings.

This project is a collaborative effort involving multiple organizations, including the City of Folsom, the California Department of Housing and Community Development, the Sacramento Area Council of Governments, SMUD, U.S. Bank, and numerous regional donors and investors. Together, they are turning a vision into reality, with the first homes already taking shape.

Construction on the 10 homes is expected to take about a year. Once complete, the new homeowners will enjoy modern, sustainable living spaces that reflect Habitat for Humanity’s commitment to providing a “hand up, not a handout.”For many of the families, this opportunity represents a chance to escape substandard living conditions and achieve stability.

For nearly 40 years, Habitat for Humanity has partnered with individuals and families to build homes and fulfill dreams. Habitat homes are sold to partner homebuyers at no profit and are financed with affordable loans. The organization relies on the support of donors, community partners, and volunteers to construct new homes and repair existing ones.

For more information about the Folsom development and Habitat for Humanity’s homeownership program, visit habitatgreatersac.org.

Imagery: City of Folsom/Habitat of Humanity Greater Sacramento.