Folsom Resale/Rental Program

In 2002, the City of Folsom implemented an Inclusionary Housing Program to increase the amount of affordable housing in the city. There are 100 Affordable Deed Restricted Units (both condominiums and single-family homes) in the city. All currently available Folsom Deed Restricted units can be found on this web page, so please check back frequently for new properties!  More information is available here: Program Guidelines

Purchasing a Deed Restricted Unit

If there is a Deed Restricted Unit that you are interested in purchasing, please contact the listing agent for information about that specific unit. Each Deed Restricted Unit has a maximum income threshold that the prospective household needs to meet in order to qualify to purchase the Deed Restricted Unit. The Real Estate listing agent will have that information.

Income Certification Process for Purchasing Deed Restricted Units

Prospective homebuyers must schedule an Income Certification Appointment using NeighborWorks® Sacramento’s online scheduling system. Prospective buyers are required to provide all requested documentation for the appointment within 24 hours of registration or their appointment will be canceled. Appointments can only be reserved on the NeighborWorks® Sacramento website – we are unable to schedule this appointment through our front desk.

Step 1 - Selecting the Appointment

Sign up for a Folsom Income Certification appointment. Next to the Deed Restricted Property listing, there is a button titled “Register for Appointment”. Click on this button and you will be directed to our calendar where you can select an available appointment time. Each property has a limited number of Income Certification Appointments; if there aren’t any available properties, you will not be able to schedule an appointment.

Step 2 - Document Submission

You must provide all requested documentation 24 hours before the appointment or it will be canceled. Contact your Real Estate agent for assistance. Gather and scan all the documents listed below and e-mail them to folsomhousing@nwsac.org. Please submit all of the following documents:

  • Income certification questionnaire – completed by all applicants
  • Most recent 3 months’ proof of income from all household members over 18 including all sources – pay stubs, social security, retirement, pension, etc.
  • Last 2 year’s W-2s and tax returns
  • Most recent 3 months’ bank statements from all bank accounts – must show adequate funds for the purchase if making a cash offer
  • Most recent 3 months’ investment statements from all accounts – stocks, bonds, money market, CDs, etc.
  • Pre-approval letter from lender – if financing the purchase

Step 3 - Income Certification Appointment

At the income certification appointment, the HomeOwnership Planner will determine your annual household income using the documents provided. Applicants are also required to provide picture ID at the time of the appointment. At the conclusion of the appointment, the HomeOwnership Planner will generate a letter that states your verified income status. This letter will be sent to the designated contact at the City of Folsom. If your income does not exceed the maximum threshold for the Deed Restricted Unit, you will work with your realtor to make an offer on the home.

Renting a Deed Restricted Unit

A homeowner of a Deed Restricted Unit may be eligible to rent their home. The homeowner must contact the City of Folsom to find out if they are allowed to rent out their unit – this is determined by the type of assistance that was received from the City of Folsom. If the homeowner is permitted to rent their unit, they must locate a renter whose income is equal to or less than their designation for their Deed Restricted Unit. The City of Folsom must be contacted to start the rental process. Once the homeowner finds a potential renter, the potential renter needs to contact NeighborWorks® Sacramento to schedule an income certification appointment. This can only be scheduled over the phone or in person at NeighborWorks® Sacramento, online sign up isn’t available for rental income certification appointments.  For more information regarding renting a Deed Restricted Unit, please review the Program Guidelines for this program.

Required Paperwork for the Rental Income Certification:

  • Copies of the last 2 years’ federal income tax returns,
  • Most recent 3 months’ pay statements,
  • Proof of any other form of income,
  • Most recent 3 months’ savings, checking, and investment statements,
  • Picture ID

There are currently no properties available. Please check back later.

FAQs for Selling Affordable Deed Restricted Units


What is Inclusionary Housing?

The Inclusionary Housing Ordinance of Folsom gives the opportunity of home ownership to those people who earn incomes at or below “very low income”, “low income”, and “moderate income”, as published by the Department of Housing and Urban Development.

Do I have to use a specific lender to purchase an Affordable Deed Restricted Unit?

No, this program is available to all lenders who are licensed with NMLS and are a business in good standing with the State of California. The City of Folsom does not maintain a list of approved lenders.

Can I get a non-occupying co-signer or co-borrower to obtain financing to purchase an Affordable Deed Restricted Unit?

No. The buyer of the Affordable Deed Restricted Unit is required to be owner-occupant; a non-occupying co-signer or co-borrower will not be allowed to participate in the purchase of the Affordable Deed Restricted Unit.

Can I use gift funds from family members to purchase the Affordable Deed Restricted Unit?

Yes, the program does not restrict the use of gift funds for the purchase of the Affordable Deed Restricted Unit. The buyer’s family members would be required to provide a gift letter with proof of sufficient funds to make the purchase.

Can an Affordable Deed Restricted Unit be purchased as an investment property?

No. Buyers of these units are required to remain as owner occupants. Therefore, purchase of an Affordable Deed Restricted Unit for investment or rental purposes is not allowed and is strictly forbidden. 

What if I am self-employed? What documentation do I need for the income certification?

Interested buyers that are self-employed will be required to provide a Profit & Loss Statement prepared by a Certified Public Account. The City of Folsom will not accept self-prepared Profit & Loss Statements. The gross income less the allowable deductible expenses (as determined by a tax professional) is what will be used for determining monthly income for those who are self-employed.

What if I am a seasonal worker? How will my income be calculated?

To calculate a seasonal worker’s income, we will use the previous 2 years' tax returns and a current Year-to-Date Profit and Loss Statement to calculate self-employment income.

What if I am a student with little or no income?

Students are eligible as long as the student falls under the income limits for the program. If the student currently receives no income, additional documentation will need to be provided to prove the student receives no other subsidy or financial support – ie: statements from IRS, EDD, Dept. Human Services, etc.

What if I am retired, am I able to purchase the Unit with my own retirement funds?

Yes. However, the total retirement funds available will be added to the total liquid assets and for the income certification and .06% of the total assets will be calculated and added to the total household income calculation.

If I purchase the Affordable Deed Restricted Unit with a cash offer, will I be able to refinance?

It depends. The mortgage lender you are applying with would determine if you are able to obtain a refinance. The City of Folsom’s program guidelines do no prohibit existing owners of Affordable Deed Restricted Units, that do not have a loan with the City of Folsom, from being able to refinance.

What if I pass away, would my heirs be able to keep the Affordable Deed Restricted Unit?

The same restrictions for selling and renting an Affordable Deed Restricted Units would apply. If an heir wants to occupy the unit as their new residence, they would be permitted to do so but would be required to notify the City of Folsom and provide proof of their rights as the surviving heir.

FAQs for Renting Affordable Deed Restricted Units


How does an affordable unit become available for rent?

A homeowner who participated in the Inclusionary Housing Program decides to rent their unit.

How does it work?

The homeowner interested in renting their home will contact the City of Folsom and notify them of their intent. The City of Folsom will determine whether or not the unit is eligible to be rented (based on certain loan status and occupancy requirements) and if so, set the rental price for the affordable unit. The homeowner then locates a potential renter and refers the prospective renter to NeighborWorks® Sacramento to schedule an income certification appointment. NeighborWorks® Sacramento will conduct an income eligibility session and determine the prospective renter’s income level. The prospective renter will be provided with a letter indicating their income level. At the conclusion of this appointment, the letter will be provided to the prospective renter and a copy sent to the City of Folsom. To schedule a Folsom Rental Income Certification, call NeighborWorks® Sacramento at (916) 452-5356 ext. 0, be sure to let them know this is for a rental income certification.

What do potential renters need to bring to the appointment?

  • Prior 2 years’ federal income tax returns
  • Most recent 3 months’ pay stubs
  • Proof of any form of income, such as a Profit and Loss Statement, SSI award letter, etc.
  • Picture ID

How much does the appointment cost?

Each income certification appointment costs $75.00. The City of Folsom will pay the fee for the first potential renter per property who attends an eligibility determination session. Any subsequent appointments will be paid for by the homeowner or renter, to be determined by those two parties.

How long does the appointment last?

We have to review a great deal of information, so please allow for the appointments to take 2 hours.

How do I know if I am income eligible?

During your housing counseling appointment, the NeighborWorks® HomeOwnership Planner will calculate your income to determine program eligibility.  The income eligibility chart on the NeighborWorks® Sacramento website will help guide you in determining if you meet income certification guidelines. Note: Income is counted from every source for member of the household over 18.

How long does the income certification last once I am renting an affordable unit?

The certification is valid for 1 year of occupancy in an Affordable Deed Restricted Unit. Renters are required to re-certify on an annual basis by following the same steps as an initial certification. Recertification appointments cost $75.00 to be paid by the homeowner or renter, determined by those two parties.

Income Eligibility Chart

Note: All sources of income are counted for all household members over 18.

Family Size 2018
1
Person
2
Person
3
Person
4
Person
5
Person
6
Person
7
Person
8
Person
Very Low Income
50% Income Limits (AMI)
$28,050

$32,050

$36,050

$40,050

$43,300

$46,500

$49,700

$52,900

Low
80% Income Limits (AMI)

$44,900

$51,300

$57,700

$64,100

$69,250

$74,400

$79,500

$84,650



2018 City of Folsom Affordable Housing Rent Limits

(Current as of June 25, 2018)

Note: Gross Rent - Utility Allowance = Net Rent

Very-Low Income Rents (50% of the median)

Bedrooms Occupancy
Gross Rent
Utility Allowance
Net Rent
1 Bedroom
2 Person

$935

$81

$854

2 Bedroom
3 Person

$1,051

$100

$951

3 Bedroom
4 Person

$1,168

$121

$1,047


Low Income Rents (80% of median)

Bedrooms Occupancy
Gross Rent
Utility Allowance
Net Rent
1 Bedroom
2 Person

$1,496

$81

$1,415

2 Bedroom
3 Person

$1,683

$100

$1,583

3 Bedroom
4 Person

$1,870

$121

$1,749