The Folsom City Council reshaped a key housing tool on September 8, rewriting the city rules that reward developers for building affordable homes — and approving a new downtown project that uses those very rules.
The centerpiece was Ordinance No. 1374, which repeals and re-enacts Chapter 17.102 of the city code — the section governing the city’s “density bonus.” A density bonus is a state-backed deal: when a developer agrees to set aside some homes as affordable (for lower-income or senior residents), the city allows them to build more units than the zoning would normally permit, and grants breaks on things like parking and setbacks. By repealing and re-enacting the whole chapter, the council brought Folsom’s local rules in line with California’s density bonus law, which the state has expanded repeatedly in recent years.
What this means for residents: expect to see more proposals for larger apartment and mixed-use buildings — especially downtown and along busy corridors — in exchange for a share of income-restricted units. For renters and buyers priced out of the market, the rewrite is designed to nudge more affordable homes into the pipeline. For neighbors, it signals that some new projects will be denser than existing zoning suggests, because state law now largely requires cities to grant these bonuses when developers qualify. A “re-enactment” like this is mostly a legal cleanup to make sure the city isn’t out of step with Sacramento — but the practical effect is more housing capacity.
Two Sutter Street projects move forward
Putting the new framework to work, the council approved Resolution No. 11694, granting design review and a density bonus for the Sutter Lofts project at 807 and 809 Sutter Street in Folsom’s historic downtown. “Design review” means the council signed off on how the building will look — its size, materials, and fit with the surrounding streetscape — an especially sensitive step on Sutter Street, the city’s old-town commercial spine. Because the project claimed a density bonus, it will include affordable units in return for building more homes than the base zoning allows.
For residents, a “lofts” project on Sutter Street typically means apartments or condos above or alongside ground-floor commercial space — the kind of infill (building on small, already-developed lots rather than open land) that adds housing without expanding the city’s footprint. It also adds foot traffic to downtown businesses.
Nearby, the council approved Resolution No. 11695, granting design review for a new custom single-family home at 315 Sutter Street. This is a much smaller, routine matter — one house rather than a multi-unit development — but it still required council review because of downtown’s historic design standards. For residents, it means one new home will be built to fit the character of the older street, subject to the same look-and-feel scrutiny as larger projects.
City to cover paving costs for senior apartments
The council also approved Resolution No. 11703, a reimbursement agreement with Vintage at Folsom, LP, the developer of the Vintage Senior Apartments project. A reimbursement agreement is a deal in which the developer pays upfront for certain public improvements — here, paving — and the city later pays back a share, because the work benefits the broader area, not just the project.
What this means for residents: the arrangement helps get a senior housing complex built while ensuring the adjacent roadwork gets done. Reimbursement deals are a common, low-drama way cities and builders split the cost of streets and utilities that serve both the new project and the surrounding neighborhood. For Folsom’s growing older population, the underlying project adds age-restricted rental housing — a segment often in short supply.
What’s coming up
With the density bonus rewrite now on the books, watch for future project applications that lean on the updated rules to build taller or denser in exchange for affordable units — particularly around downtown and Sutter Street. Residents who want a say on how individual buildings look and fit their neighborhoods can weigh in during the design review hearings that projects like Sutter Lofts must clear. Check the city’s meeting agendas at the Folsom City Council page for upcoming hearing dates.