$2 million deferred for Vintage at Folsom senior housing plan

Folsom city officials approved a $2 million fee deferral Tuesday for the 136-unit "Vintage at Folsom" affordable senior housing project on East Natoma Street near the civic center. The Vintage multifamily project is a new, 100-percent affordable, age-restricted multifamily rental development on a wooded, undeveloped, 4.86-acre triangle at 103 East Natoma Street. The three nearest cross streets are Fargo Way, Folsom Prison Road and Cimarron Circle. As proposed, the approved project for the triangle includes 136 one- and two-bedroom units divided among low-, very low- and extremely low-income senior households. The Folsom Planning Commission approved permits and a density bonus for the Vintage project last year. The decision was appealed later and the Folsom City Council denied the appeal, approving the commission recommendation. The council approved bond funding for the project last April. The city approved bonds early this year to help fund it. While no city affordable housing loan is on the table, the Vintage developer requested a deferral for impact fees. Folsom code says the City Council must approve any deferral of impact fees for qualified residential projects. The Folsom housing element also directs Folsom to provide fee deferrals of residential impact fees to developers of qualified affordable housing projects. "The City of Folsom is committed to work with housing developers to expand opportunities for affordable lower-income and workforce housing by creating partnerships, providing incentives, and pursuing funding opportunities," staff announced in the report. "Deferring payment of impact fees is a valuable incentive that offers developers significant savings, as developers would otherwise have to finance this expense." Fees from outside agencies remain payable at the time of building permits unless deferred by them, staff said. The City Council can approve deferral of up to 75 percent of the total impact fees for low and "very low" income units. To qualify, a project must have all required approvals and include at least 10 percent of units for very low-income households and 30 percent for low-income households. The Vintage at Folsom ratio passes, staff said. The current estimated city fees for Vintage total about $2.8 million, with $2.1 million eligible for deferral, according to the report. The maximum deferral period is 15 months from the building permit issue. To ensure payment of deferred fees, a satisfactory deferral agreement and a deed of trust will be recorded against the property. City staff supports the requested fee deferral. While the fee deferral for this project will not have a direct fiscal impact on the city general fund, the potential 15-month deferral could result in a missed opportunity for interest earnings, according to the report. Community Development Director Pam Johns, however, said the 15-month time frame is not long enough to have an impact on the budget. Additional minor costs will be incurred for the fee deferral agreements and liens, and to monitor the collection of deferred fees. These costs will be offset by the fee deferral application and processing fees, staff explained. The City Council approved the deferment at the regular meeting Tuesday during the non-controversial consent agenda.