CITY OF LANCASTER
SUBSTANTIAL AMENDMENT
TO THE
2020-2021 through 2024-25 ACTION PLANS
DRAFT FOR PUBLIC COMMENT PERIOD
April 11, 2025 – May 13, 2025
Draft Substantial Amendment – for Public Review
Annual Action Plan LANCASTER
OMB Control No: 2506-0117
This page intentionally left blank.
Draft Substantial Amendment – for Public Review
Annual Action Plan LANCASTER
OMB Control No: 2506-0117
Table of Contents
EXECUTIVE SUMMARY ...................................................................................................................................... 1 PROCESS .............................................................................................................................................................. 3 EXPECTED RESOURCES – 91.220(C)(1,2) ................................................................................................. 4 ANNUAL GOALS AND OBJECTIVES – 91.220(C)(3) ............................................................................... 5 PROJECTS – 91.220(D) .................................................................................................................................... 6
Draft Substantial Amendment – for Public Review
Annual Action Plan LANCASTER Pg. 1
OMB Control No: 2506-0117
EXECUTIVE SUMMARY
Background
The U.S. Department of Housing and Urban Development (HUD) requires all entitlement communities receiving Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) funds, such as the City of Lancaster (City), to prepare and submit a Consolidated Plan every five (5) years to establish a unified, strategic vision for economic development, housing and community development actions. The Consolidated Plan encompasses the analysis of local community needs and coordinates appropriate responses to those needs and priorities.
The Consolidated Plan is carried out through Annual Action Plans which provide a concise summary of the actions, activities, and the specific federal and non -federal resources that will be used each year to address the priority needs and specific goals identified in the Consolidated Plan.
In addition, the City received two rounds of Neighborhood Stabilization Funds (NSP).
The NSP funds were federal funds provided to help communities recover from the effects of the 2008 housing crisis, especially the high rates of foreclosure and property abandonment. These funds were designed to stabilize neighborhoods that had been hit hard by the housing market crash.
Per the City’s Citizen Participation Plan (CPP), a Substantial Amendment to a Consolidated Plan and Action Plan is required when a “substantial” change is proposed as it relates to funding priorities, proposed activities, goals, and objectives.
This substantial amendment to the Action Plans is necessary because the City has proposed cancelling eight (8) activities, repurposing the balance on one (1) activity, and closing out one (1) grant and repurposing those funds to the following activities:
Reprogramming of Home Investment Partnerships (HOME)
PY 2020/2021 Activity(ies)
• HOME Administration – reprogram $65,211.00 from the existing budget to the First Time Homebuyer Program. Cancel HOME Administration activity.
• HOME Community Housing Development Organization (CHDO) – reprogram $ 97,816.50 from the existing budget to the First Time Homebuyer Program. Cancel HOME CHDO activity.
PY 2021/2022 Activity(ies)
• HOME Administration – reprogram $67,613.20 from the existing budget to the First Time Homebuyer Program. Cancel HOME Administration activity.
Draft Substantial Amendment – for Public Review
Annual Action Plan LANCASTER Pg. 2
OMB Control No: 2506-0117
• HOME Community Housing Development Organization (CHDO) – reprogram $ 101,419.80 from the existing budget to the First Time Homebuyer Program. Cancel HOME CHDO activity.
PY 2022/2023 Activity(ies)
• HOME Administration – reprogram $75,119.30 from the existing budget to the First Time Homebuyer Program. Cancel HOME Administration activity.
• HOME Community Housing Development Organization (CHDO) – reprogram $ 112,678.95 from the existing budget to the First Time Homebuyer Program. Cancel HOME CHDO activity.
PY 2023/2024 Activity(ies)
• HOME Administration – reprogram $60,969.02 from the existing budget to the First Time Homebuyer Program. C loseout the HOME Administration activity.
PY 2024/2025 Activity(ies)
• HOME Administration – reprogram $65,672.79 from the existing budget to the First Time Homebuyer Program. Cancel HOME Administration activity.
• HOME Community Housing Development Organization (CHDO) – reprogram $9 8,509.18 from the existing budget to the First Time Homebuyer Program. Cancel HOME CHDO activity.
Transfer and Reprogramming of Neighborhood Stabilization Program 3 (NSP3) – New Community Development Block Grant (CDBG)
• NSP 3 (Program Income) – transfer and reprogram $868,398.81 generated in program income to the First Time Homebuyer Program.
Close out NSP3 grant.
Sources
The City will program the following resources in this substantial amendment to the 2024-2025 Annual Action Plan and corresponding PY 2020-2024 Consolidated Plan (which may be found at www.cityoflancasterca.org/our-city/departments- services/housing-neighborhood-revitalization/cdbg-community-development- block-grant:
PY 2020 – 2021 Formula HOME: $ 163,027.50
PY 2021 – 2022 Formula HOME: $ 169,033.00
PY 2022 – 2023 Formula HOME: $ 187,798.25
Draft Substantial Amendment – for Public Review
Annual Action Plan LANCASTER Pg. 3
OMB Control No: 2506-0117
PY 2023 – 2024 Formula HOME: $ 60,969.02
PY 2024 – 2025 Formula HOME: $ 164,181.97
NSP3 Program Income Transfer: $ 868,398.81
TOTAL: $1,613,408.55
City Council is responsible for determining how the HUD funds, including CDBG, HOME, and NSP funds will be used to provide decent housing, a suitable living environment, and expanded economic opportunities principally for persons of low - and moderate -income persons. In consultation with the City Council, City departments, and partners serving the needs of low - and moderate -income individuals and families in the community , this submission to the City Council requests approval to invest the above funding for the projects listed below.
Proposed Projects
Home Investment Partnerships (HOME)
2020/2021 First-Time Homebuyer Program:
Original Allocation: $489,082.50
Proposed Increase: $163,027.50
Total Proposed Budget: $652,110.00
2021/2022 First-Time Homebuyer Program:
Original Allocation: $507,099.00
Proposed Increase: $169,033.00
Total Proposed Budget: $676,132.00
2022/2023 First-Time Homebuyer Program:
Original Allocation: $563,394.75
Proposed Increase: $ 187,798.25
Total Proposed Budget: $ 751,193.00
2023/2024 First-Time Homebuyer Program:
Original Allocation: $ 543,458.25
Proposed Increase: $ 60,969.02
Total Proposed Budget: $604,427.27
2024/2025 First-Time Homebuyer Program:
Original Allocation: $492,545.89
Proposed Increase: $ 164,181.97
Total Proposed Budget: $656,727.86
Draft Substantial Amendment – for Public Review
Annual Action Plan LANCASTER Pg. 4
OMB Control No: 2506-0117
Community Development Block Grant (CDBG)
2024/2025 First-Time Homebuyer Program:
Original Allocation: $ 0.00
Proposed Increase: $ 868,398.81
Total Proposed Budget: $868,398.81
PROCESS
The City is conducting a 30-day review period for this substantial amendment from April 11 – May 13 , 202 5. The City will conduct a public hearing for the substantial amendment as part of the May 13, 2025, City Council meeting.
To encourage review and comment on the proposed activities, the City published notices in English and Spanish in the Antelope Valley Press on Friday, April 11, 2025, advertising the substantial amendment in compliance with the City’s C itizen Participation Plan. An electronic copy of the substantial amendment was available on the City’s website and hard copies were placed at the Lancaster City Hall – Finance & Information Technology Department, 44933 Fern Avenue, Lancaster, CA 93534.
Sort
Order
Activity Target Population Summary Summary of
Comments Received
1. Public
Hearing
• Minorities
• Non-English
Speaking
• Persons with
disabilities
• Broad
community
• Residents of
public/assisted
housing
• Stakeholders
The City conducted its
public hearing to
review the Substantial
Amendment on May
13, 2025.
(to be completed after
public hearing)
2. Comment
Period
• Minorities
• Non-English
Speaking
• Persons with
disabilities
• Broad
community
• Residents of
public/assisted
housing
• Stakeholders
The City conducted its
comment period from
April 11 – May 13, 2025.
(to be completed at
close of public
comment period)
Table 1 – Resident Engagement
Draft Substantial Amendment – for Public Review
Annual Action Plan LANCASTER Pg. 5
OMB Control No: 2506-0117
EXPECTED RESOURCES – 91.220(C)(1,2)
Introduction
The City is re programming $745,009.74 from PY 202 0-2021 through PY 2024 -2025 formula HOME resources and transferring $868,398.81 in NSP3 income funds to the City’s CDBG Program and closing out the NSP3 grant. The repurpose of the HOME funds and NSP3 program income (new CDBG funds) will be allocated to the City’s First Time Homebuyer Program.
Anticipated Resources
Program Source
of
Funds
Eligible Use of Funds Funds Narrative Description
HOME Public-
Federal
• Increase Supply of
Affordable Housing
• Affordable Housing
Preservation
• Promote
Homeownership
Opportunities
• Planning and
Administration
$745,009.74 Strengthen public-private
partnerships and provide
mortgage assistance to
create affordable
homeownership
opportunities for low -and
moderate -income
households.
CDBG Public -
Federal
• Increasing Supply of
Affordable Housing
• Affordable Housing
Preservation
• Promote
Homeownership
Opportunities
• Planning and
Administration
$868,398.81 Strengthen public-private
partnerships and provide
mortgage assistance to
create affordable
homeownership
opportunities for low -and
moderate -income
households.
Table 2 - Expected Resources
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied
In the initial planning and programming of these resources, the Finance Department has worked closely with other City departments as well as monitored other funding sources available at the local, state, and federal level to ensure that the City is not Draft Substantial Amendment – for Public Review
Annual Action Plan LANCASTER Pg. 6
OMB Control No: 2506-0117
providing duplicative assistance and addressing unmet needs and gaps for low- and moderate-income residents.
Draft Substantial Amendment – for Public Review
Annual Action Plan LANCASTER Pg. 7
OMB Control No: 2506-0117
Annual Goals and Objectives – 91.220(c)(3)
The City will be amending its following existing goals to reallocate PY 2020-21 through PY 2024-2025 HOME resources and 2024-2025 CDBG resources derived from NSP3 program income . These resources will be re -programmed in the PY 2024-2025 Action Plan and corresponding PY 2020 – PY 2024 Consolidated Plan.
Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs
Addressed
Funding Goal Outcome
Indicator (GOI)
7 Promote
Homeownership
Opportunities
2021 2025 Affordable
Housing
Citywide Affordable
Housing
HOME:
$745,009.74
CDBG:
868,398.81
(additional
amounts to
be added to
the existing
ConPlan
Funding)
Direct
Financial
Assistance to
Homebuyers –
11 Households
Assisted
(additional
amounts to be
added to the
existing Con Plan
GOI)
Table 3 – Annual Goals
Draft Substantial Amendment – for Public Review
Annual Action Plan LANCASTER Pg. 8
OMB Control No: 2506-0117
PROJECTS – 91.220(D)
Introduction
With the repurposing of HOME and NSP3 (new CDBG funds) resources , the City will increase funding to the following project s in the PY 202 0-2021 through 2024 -2025 Annual Action Plans:
# Project Name
1. 2020-2021 First-Time Homebuyer Program
2. 2021-2022 First-Time Homebuyer Program
3. 2022-2023 First-Time Homebuyer Program
4. 2023-2024 First-Time Homebuyer Program
5. 2024-2025 First-Time Homebuyer Program
Table 4 – Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
These projects were determined in consultation with City staff, departments, and stakeholders serving low - and moderate -income residents of Lancaster to provide decent housing, a suitable living environment, and expanded economic opportunities principally for persons of low- and moderate- income within the City.
Project Summary Information
1 Project Name 2020-2021 First-Time Homebuyer Program
Target Area Citywide
Goals Supported Promote Homeownership Opportunities
Needs Addressed Affordable Housing
Funding HOME: $163,027.50
Description The program will provide income eligible first-time homebuyers with financial assistance towards the purchase of their home.
Target Date 06/30/2026
Estimate the number
and type of families
that will benefit from
the proposed
activities
Approximately 1 household assisted
Location Description Citywide
Planned Activities 2020-2021 First-Time Homebuyer Program (1 household assisted) - $163,027.50
Draft Substantial Amendment – for Public Review
Annual Action Plan LANCASTER Pg. 9
OMB Control No: 2506-0117
2 Project Name 2021-2022 First-Time Homebuyer Program
Target Area Citywide
Goals Supported Promote Homeownership Opportunities
Needs Addressed Affordable Housing
Funding HOME: $169,033.00
Description The program will provide income eligible first-time homebuyers with financial assistance towards the purchase of their home.
Target Date 06/30/2026
Estimate the number
and type of families
that will benefit from
the proposed
activities
Approximately 1 household assisted
Location Description Citywide
Planned Activities 2021-2022 First -Time Homebuyer Program ( 1 household assisted) - $169,033.00
3 Project Name 2022-2023 First-Time Homebuyer Program
Target Area Citywide
Goals Supported Promote Homeownership Opportunities
Needs Addressed Affordable Housing
Funding HOME: $187,798.25
Description The program will provide income eligible first-time homebuyers with financial assistance towards the purchase of their home.
Target Date 06/30/2026
Estimate the number
and type of families
that will benefit from
the proposed
activities
Approximately 1 household assisted
Location Description Citywide
Planned Activities 2022-2023 First-Time Homebuyer Program ( 1 household assisted) - $187,798.25
4 Project Name 2023-2024 First-Time Homebuyer Program
Target Area Citywide
Goals Supported Promote Homeownership Opportunities
Needs Addressed Affordable Housing
Draft Substantial Amendment – for Public Review
Annual Action Plan LANCASTER Pg. 10
OMB Control No: 2506-0117
Funding HOME: $60,969.02
Description The program will provide income eligible first-time homebuyers with financial assistance towards the purchase of their home.
Target Date 06/30/2026
Estimate the number
and type of families
that will benefit from
the proposed
activities
Approximately 1 household assisted
Location Description Citywide
Planned Activities 2023-2024 First-Time Homebuyer Program ( 1 household assisted) - $60,969.02
5 Project Name 2024-2025 First-Time Homebuyer Program
Target Area Citywide
Goals Supported Promote Homeownership Opportunities
Needs Addressed Affordable Housing
Funding HOME: $164,181.97
CDBG: $868,398.81
Description The program will provide income eligible first-time homebuyers with financial assistance towards the purchase of their home.
Target Date 06/30/2026
Estimate the number
and type of families
that will benefit from
the proposed
activities
Approximately 7 households assisted
Location Description Citywide
Planned Activities 2024-2025 HOME - First-Time Homebuyer Program ( 1 households assisted) - $164,181.97
2024-2025 CDBG - First-Time Homebuyer Program ( 6
households assisted) - $868,398.81
Table 5 – Project Details
Other Revisions
No other revisions are proposed.