City’s role in the bond issuance cited as “largely administrative,” as the bonds will be repaid from funds generated by the project
The Folsom City Council has authorized the issuance of $25 million in bonds to help finance the Harrington Grove affordable housing project. The project, set to be constructed at 791 Harrington Way, will offer 52 units for low-, very-low-, and extremely-low-income households, helping to address the increasing demand for affordable housing in the region.
The bond issuance, approved at a public hearing last week, will be facilitated by the California Municipal Finance Authority (CMFA), which will serve as the municipal issuer of the tax-exempt bonds. This financing mechanism allows for lower interest rates, reducing overall project costs while ensuring long-term affordability. The bonds will be the sole responsibility of the project developer, Folsom Pacific Associates II, LP, meaning the City of Folsom bears no financial liability.
The project has undergone multiple approvals in recent months. The Folsom Planning Commission recommended approval in November 2024, and the Folsom City Council previously approved a $2.7 million affordable housing loan last July to help finance construction. The site, spanning 1.74 acres on the west side of Harrington Way, is currently zoned for business-professional use. However, due to an overlay district allowing mixed-use developments along East Bidwell Street, the city permitted the project under these guidelines. The overlay mandates a minimum density of 30 housing units per acre, with no maximum cap.
The development will consist of two buildings, each standing three stories and reaching 40 feet in height. The first building will house 22 residential units and feature a 2,800-square-foot community center on the first floor, which will include a leasing office, fitness area, community space, maintenance room, and laundry facilities. The second building will contain 30 units, bringing the total unit mix to 18 one-bedroom, 17 two-bedroom, and 17 three-bedroom apartments. Unit sizes will range from 571 to 1,113 square feet, with all residences featuring in-unit washers and dryers, covered patios or balconies, and outdoor storage closets.
Neighborhood and Environmental Considerations
The site is bordered by an existing apartment community to the south and west, a senior care facility to the east, and Willow Creek to the north. The land is mostly flat and was originally divided into three parcels in 1992. While no trees exist on the site itself, native oaks line the perimeter, particularly along the adjacent trail boundary. The project’s landscaping plan calls for California-native, low-water-use trees, shrubs, and ground cover selections to maintain ecological sustainability.
To preserve neighborhood aesthetics and minimize disruption, existing fences and sound walls will remain in place, with no gated access planned. Two new driveways will be constructed on Harrington Way to improve access, and 78 parking spaces will be provided, including 31 electric vehicle (EV)-ready spots. Pedestrian pathways will be incorporated throughout the development, ensuring connectivity between buildings and outdoor spaces.
Community Amenities and Accessibility
Harrington Grove is designed to “foster a welcoming and inclusive environment for its residents.” The affordable housing project cites it will cater to individuals and families earning between 30 and 80 percent of the area’s average monthly income. Additionally, a limited number of units will be designated as accessible to accommodate disabled individuals and families in need of specialized housing.
Outdoor amenities will include a children’s play area, a dedicated dog run, and a stormwater basin to support sustainable water management. The L-shaped building layout will enclose a parking area, ensuring a safe and functional residential environment.
The CMFA, which was established in 2004 to assist local governments and nonprofits in securing financing for development projects, will oversee the issuance of the bonds. Since the bonds are tax-exempt, the funding process remains cost-efficient for the developer. A portion of the issuance fees collected by CMFA may be granted to Folsom’s general fund, allowing the city to allocate funds toward local programs or services.
As part of the approval process, a Tax and Equity Fiscal Responsibility Act (TEFRA) hearing was held, providing the public an opportunity to weigh in on the financing of the project. Notice of the hearing was published in the Folsom Telegraph on February 14.
From an environmental standpoint, the project was deemed exempt from additional review under the California Environmental Quality Act (CEQA), as it aligns with the city’s zoning regulations and community planning efforts. The project is expected to take 2-3 years to complete.