STAFF REPORT
City of Lancaster
PH 1
4/8/2025
TN
Date: April 8, 2025
To: Mayor Parris and City Council Members
From: George N. Harris II, Senior Director/Treasurer – Admin Services Subject: Public Hearing and Adoption of the U.S. Department of Housing and Urban Development (HUD) Five-Year Consolidated Plan (2025-2029) and the One-Year Action Plan (2025-2026) for the Community Development Block Grant (CDBG) and HOME Investment Partnership Program (HOME).
Recommendation:
a. Approve and adopt the draft Five Year Consolidated Plan (2025-2029) for the CDBG and HOME Programs.
b. Approve and adopt the draft FY 2025-2026 Annual Action Plan for the CDBG and HOME Programs.
c. Approve the proposed methodology for distributing funds should the City’s 2025-2026 CDBG and HOME annual allocations increase or decrease.
d. Authorize the City Manager or designee to execute all contracts and associated documents, including subrecipient agreements, subject to City Attorney approval.
G.C. Section 84308: No
Fiscal Impact:
There will be no negative impact on the General Fund. As an entitlement grantee, the City is eligible to receive CDBG and HOME funds annually from HUD. The 2025-2026 Action Plan allocates approximately $1,582,198 in CDBG funds and $656,727 in HOME funds in furtherance of the City’s Consolidated Plan Strategic Plan Goals.
Background:
The City has been a recipient of CDBG entitlement funds from the U.S. Department of Housing and Urban Development since 1986 and began receiving HOME funds in 2020. To continue receiving these allocations, the City must prepare and submit a new Five-Year Consolidated Plan, which establishes a unified, strategic vision for housing, community, and economic development actions.
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The draft Consolidated Plan covers the period from July 1, 2025, to June 30, 2029. It identifies priority needs and strategies for housing and community development, supported by goals to address these needs. The needs analysis was based on available demographic, housing, and economic data from the 2020 American Community Survey 5-Year Estimates and other HUD- supplied data, public hearings, community meetings, and consultations with local agencies and stakeholders. The City conducted a community needs survey, available to the public both online and in hardcopy format, which received a total of 386 responses (357 residents and 29 stakeholders). A summary of the survey results is included in the Plan. The strategies and goals for utilizing CDBG and HOME funds to address local priority needs align with HUD's national goals of providing decent housing, a suitable living environment, and expanding economic opportunities for low- and moderate-income families.
The draft Consolidated Plan includes six priority needs and goals to be addressed through the implementation of projects in each One-Year Action Plan. The identified priority needs are:
•Supportive human services for vulnerable populations
•Public facilities and infrastructure improvements
•Preservation of existing homeowner housing
•Affordable homeowner housing development
•Homeownership opportunities
•Ensuring equal access to housing opportunities
The draft Action Plan covers the period from July 1, 2025, to June 30, 2026. It outlines the one- year goals and budgets for the CDBG and HOME programs and the planned projects to address the priority needs and goals identified in the Consolidated Plan. The proposed Action Plan is intended to provide a summary of proposed program activities, eligibility criteria, and funding levels for the 2025-2026 program year. All programs and projects submitted in the Plan comply with HUD guidelines for eligible activities.
As of the date of this meeting, HUD has not released the City’s CDBG and HOME annual allocation; hence, HUD has advised the City to prepare its Action Plan using the current year's CDBG and HOME allocations. Consequently, for the 2025-2026 program year, it is anticipated that the City will receive approximately $1,582,198 in CDBG funds and $656,727 in HOME funds to be allocated to eligible activities. The program activities listed below will be implemented from July 1, 2025, to June 30, 2026.
CDBG Activities
Public Service
Street Company: Coffee Manufacturing Homeless Employment Program $50,000 Lost Angels Children’s Project: Workforce Development Program $109,200 The Antelope Valley Partners for Health: Feed the Need $78,129 Sub-Total: $237,329
Capital
City of Lancaster: Housing Rehabilitation Program $1,028,430 Sub-Total: $1,028,430
Administration
Program Administration $276,439
Fair Housing Foundation: Fair Housing Services $40,000
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Sub-Total: $316,439
TOTAL 2025-2026 CDBG PROGRAM $1,582,198
HOME Activities
Capital
CHDO Set-Aside $98,510
Homebuyer Assistance Program $558,217
Sub-Total: $656,727
TOTAL 2025-2026 HOME PROGRAM $656,727
In accordance with Title 24 CFR part 91, this Five-Year Consolidated Plan and Annual Action Plan outlines the activities the City will undertake to address priorities and objectives with anticipated CDBG and HOME funding during the 2025-2026 program year (PY). An Action Plan will be developed and submitted for each program year within the five-year planning period of the 2025-2029 Consolidated Plan.
Due to the uncertainty in the City’s 2025-2026 annual allocations, a request is being made to the City Council to provide staff and the public with a methodology for adjusting activity budgets when final allocations are released by HUD. It is recommended that the City Council adopt the following language for adjusting activity budgets for the CDBG and HOME programs:
CDBG:
If the CDBG allocation exceeds $1,582,198:
•The CDBG Administration budget will be increased to comply with the 20 percent cap for administrative activities.
•All public service activities will receive an equitable increase to comply with the 15 percent cap for public services activities.
•The balance of funds will be added to the City’s Housing Rehabilitation Program.
If the CDBG allocation is less than $1,582,198:
•The CDBG Administration budget will be reduced to comply with the 20 percent cap for administrative activities.
•All public service activities will receive an equitable reduction to comply with the 15 percent cap for public services activities.
•The balance of funds will be deducted from the City’s Housing Rehabilitation Program.
HOME:
If the HOME allocation exceeds $656,727:
•The CHDO activity budget will be increased to comply with the 15 percent set-aside requirement.
•The balance of funds will be added to the City’s First-Time Homebuyer (FTHB) Program.
If the HOME allocation is less than $656,727:
•The CHDO activity budget will be reduced to comply with the 15 percent set-aside requirement.
•The balance of funds will be deducted from the City’s FTHB Program.
To proceed with the City's Five-Year Consolidated Plan and Annual Action Plan, which serves as the formal document to HUD for the CDBG and HOME grant funding, it is necessary for the 2 0
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City Council to take public testimony on the two documents, which include the proposed PY 2025-2026 projects.
In compliance with federal requirements and in accordance with the City’s Citizen Participation Plan, the City published its proposed Five-Year Consolidated Plan and Annual Action Plan on March 7, 2025, providing a 30-day public review and comment period. Comments received during the review period, spanning March 8, 2025, through April 8, 2025, will be attached to the Five-Year Consolidated Plan and Annual Action Plan and incorporated into the plan where appropriate.
Attachment:
City of Lancaster Draft 2025-2029 Five-Year Consolidated Plan and 2025-2026 Annual Action Plan