In 2002, the City of Folsom implemented an Inclusionary Housing Program.  Because of this program, there are 100 Deed Restricted Units (both condominiums and single-family homes) in the city.  When these homes go on the market, they must be sold at an affordable rate to income-qualifying buyers.  NeighborWorks Sacramento partners with the City of Folsom to certify the income of potential buyers of these units.  We update the our listings as soon as properties come available, so please check back frequently for new properties! 

All Deed Restricted properties that are currently available are listed below.  If you are interested in purchasing an available property, please contact the listing agent.  You may find their phone number when you click the “Details” button on the listing.  Each Deed Restricted Unit has a maximum income threshold.  Your household must fall under this threshold to qualify to purchase the unit, and the listing agent will have the information on the income thresholds.

If you believe you will qualify, you will need to schedule an income certification appointment with NeighborWorks.  Please refer to the “Income Certification Process” below for instructions.

If you are interested in affordable rental units in Folsom, we have information about their programs at the bottom of this page.


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Income Certification Process
for Purchasing Deed Restricted Units

STEP 1 - Sign up for a folsom income certification appointment

To sign up for an appointment, you must sign up through NeighborWorks’ online scheduling system.  We cannot schedule these appointments through our front desk.  Each property has a limited number of appointments, and they are listed on our calendar.  To sign up, click the button below to view our calendar.  Once in our calendar, find a “Folsom Income Certification” listed on the calendar.  When you click on that, you will be redirected to a page where you can reserve that appointment.  If you are unable to reserve that appointment, it means it is no longer available.

Step 2 - Document Submission

YOU MUST PROVIDE ALL REQUESTED DOCUMENTS 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 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


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


Income Eligibility Chart

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

2021 City of Folsom Affordable Housing Rent Limits

NOTE: Gross Rent – Utility Allowance = Net Rent

VERY-LOW INCOME RENTS (50% of the median)

1 Bedroom

2 Person

  • Gross Rent $1,057.25
  • Utility Allowance $92
  • Net Rent $965.25

2 Bedroom

3 Person

  • Gross Rent $1,190
  • Utility Allowance $117
  • Net Rent $1,073

3 Bedroom

4 Person

  • Gross Rent $1,321.25
  • Utility Allowance $145
  • Net Rent $1,176.25

LOW INCOME RENTS (80% of the median)

1 Bedroom

2 Person

  • Gross Rent $1,691.67
  • Utility Allowance $92
  • Net Rent $1,599.67

2 Bedroom

3 Person

  • Gross Rent $1,903.13
  • Utility Allowance $117
  • Net Rent $1,786.13

3 Bedroom

4 Person

  • Gross Rent $2,114.58
  • Utility Allowance $145
  • Net Rent $1,969.58


Click on the Question to or the “+” sign to reveal the answer.


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.

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.

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.

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.

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. 

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.

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.

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.

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.

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.

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.


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

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.

  • 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

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.

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

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.

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.

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