Folsom’s City Council took up four housing measures on September 22, 2026, headlined by a full rewrite of the city’s density bonus rules — a change that could make it easier to build more homes on the same amount of land across town.

New density bonus rules

The council approved Ordinance No. 1374, which repeals and re-enacts Chapter 17.102 of the city code — the section governing the “density bonus.” A density bonus is a state-required deal: when a developer agrees to set aside some homes for lower-income or senior residents, the city must let them build more units than zoning would normally allow, and often grant other concessions like reduced parking or smaller setbacks.

California updates these rules frequently, and cities are required to keep their local codes in line with state law. By re-enacting the chapter, Folsom is bringing its rulebook current. For residents, this means builders who include affordable units can add more homes to a project — which supporters say helps the overall housing supply, while neighbors may see denser development than older zoning maps suggest. Buyers looking for below-market or age-restricted units may find more of them come online as a result.

Historic Folsom Station agreement amended

The council also passed Ordinance No. 1378, approving an amendment (case number DEVA26-00036) to the Historic Folsom Station Development Agreement. A development agreement is a binding contract between the city and a developer that locks in the terms of a project — its size, its fees, and its timeline — so both sides know what to expect over the years it takes to build.

Historic Folsom Station is the transit-oriented redevelopment near the light-rail stop in the old downtown district, an area the city has long wanted to see grow with housing and shops. Amending the agreement adjusts the deal’s terms; such changes typically reflect updated construction phasing, revised fees, or new market conditions. For downtown residents and anyone hoping to live near the rail line, the amendment keeps this long-running project moving and clarifies what will get built and when.

A new tax district for Folsom Heights

The council moved to form Community Facilities District No. 22A (Folsom Heights) and set its special taxes. A Community Facilities District — often called a “Mello-Roos” district after the state law that created the tool — lets a city levy an extra annual tax on properties in a defined area to pay for public infrastructure like roads, water lines, and parks that a new development needs.

This is a routine but important step for large master-planned neighborhoods, and Folsom Heights is part of the city’s major growth area south of Highway 50. What it means for buyers is direct and personal: homes purchased inside this district will carry a special tax on top of ordinary property taxes, typically for decades until the infrastructure bonds are paid off. Anyone shopping for a new home in Folsom Heights should ask about the Mello-Roos amount, since it can add hundreds or even thousands of dollars to an annual tax bill.

Setting housing priorities

Finally, the council held a Housing Program Implementation Workshop to set its housing priorities for the next two years. Workshops like this are working sessions rather than final votes — the council discusses goals and gives staff direction, but no ordinance is passed.

These sessions shape what the city actually spends time and money on, from affordable-housing programs to code updates and permit processing. For residents, the workshop is an early look at what to expect: the priorities set here often become the ordinances and budget decisions voted on in the months ahead.

What’s coming up

The Folsom Heights tax district and the priorities discussed at the housing workshop are both likely to return for follow-up action, including further votes on the special-tax structure and any specific programs the council chose to pursue. Residents interested in weighing in can watch the city’s meeting calendar for upcoming public hearings on these items.