STAFF REPORT
City of Lancaster
PH 2
7/8/2025
TN
Date:July 8, 2025
To: Mayor Parris and City Council Members
From: George N. Harris II, Senior Director/Treasurer – Administrative Services Subject:Substantial Amendment to the City’s 2025-2026 Action Plan – NSP1 Recommendation:
a.Conduct a public hearing and upon accepting public testimony concerning housing and community development needs, priority non-housing community development needs, proposed strategies and actions for affirmatively furthering fair housing, the development of proposed activities, and review of program performance, proposals and questions. b.Approve the Substantial Amendment to the 2025-2026 Action Plan to allow for the transfer of $2,156,001 in Neighborhood Stabilization Program 1 (NSP1) program income funds to the City’s Mariposa Park Project ($560,000) and the First Time Homebuyer Program ($1,596,001); and
c.Authorize the City Manager, or designee, to execute and transmit all necessary documents to the U.S. Department of Housing and Urban Development (HUD), including the Substantial Amendment to the Action Plan to ensure the City’s timely expenditure of HUD funds.
G.C. Section 84308: No
Fiscal Impact:
There will be no impact to the City’s General Fund. All proposed dollars impacted by the Substantial Amendment to the Action Plan have previously been awarded to the City and budgeted to activities in the previously adopted Action Plan and Substantial Amendments. The following CDBG accounts will need to be adjusted in the City’s budget: Increase the following accounts:
31222000.6999 - $2,156,001 31049900.8000 - $560,000 - Mariposa Park Project 31022000.5656 - $1,596,001.00 (Project# FTHBPRGM.CDBGGRANT) - First Time Homebuyer Program The transfer of NSP1 funds to the CDBG Program will ensure that the City’s program funds are utilized 2 0
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to improve the quality of life for the City’s residents. The City Council’s approval of the recommended action adopts the Substantial Amendment to the Action Plan, thereby allocating those resources into the CDBG budgets.
Background:
HUD requires all entitlement communities receiving CDBG funds, such as the 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 five (5) Annual Action Plans, which provide a concise summary of the actions, activities, and resources that will be used each year to address the priority needs and specific goals identified in the Consolidated Plan. The City must submit an Annual Action Plan to HUD each year of the five-year Consolidated Plan period. The City Council adopted and submitted the Action Plan to HUD by the required deadline dates of each year.
After a thorough review of existing activities, proposed goals, and consultation with HUD representatives, the City identified the need to Substantially Amend its Action Plan by allocating funds to activities that will provide decent, safe and affordable housing, a suitable living environment, and expand on economic opportunities principally for persons of low- and moderate- income throughout the City.
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 Plan is necessary because the City has proposed closing out one (1) grant and reallocating those funds to the Mariposa Park Project and the City’s First Time Homebuyer Program.
Pursuant to 24 CFR 91.505(a), a Substantial Amendment requires specific citizen participation actions, including a Public Hearing and a 30-day public review period, before the changes may be approved by the City Council and submitted to HUD. The Public Hearing Notice concerning the proposed Substantial Amendment to the Action Plan was published in the Antelope Valley Press on June 9, 2025. The Substantial Amendment was made available on the City’s website, Finance & Technology Information Department, and City Clerk’s Office for a 30-day public review period starting on June 7, 2025, and ending on July 8, 2025.
Staff recommend amending the Action Plan noted in the enclosed Substantial Amendment. The proposed projects are consistent with the Consolidated Plan goals and will provide immediate assistance to the community.
Analysis:
The following narrative provides descriptions and other information for the proposed Action Plan activities.
Activities
Mariposa Park Project
The funds will be used to provide financial assistance for improvements made to Mariposa Park.
The enhancements include, but are not limited to, the purchase and installation of new playground 2 0
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equipment, new signage, the installation of new fencing, and ADA modifications to ensure access for all residents of the community. The project is anticipated to benefit approximately 18,950 people who benefit from the facility.
CDBG First Time Homebuyer Program
The program will provide financial assistance to rehabilitate low-income single-family owner- occupied homes, including mobile homes. Improvements will address health and safety concerns, code violations, and lead-based paint requirements. The program is anticipated to benefit 11 households.
Table 1: Proposed Activity Budget Modifications and Reprogrammed Activity Budgets Program Year/ Activity Title Existing
Budget New Budget Difference
CDBG/NSP1 Program
NSP1 Program Income $2,156,001.00 $0 ($2,156,001.00)
CDBG Mariposa Park Project $0.00 $560,000.00 $560,000.00 CDBG FTHB Program $0.00 $1,596,001.00 $1,596,001.00
Sub-Total $2,156,001.00 $2,156,001.00 $0
Alternatives:
1. Provide alternative direction to staff.
Attachment:
1. Substantial Amendment to the 2020-2021 through 2024-2025 Annual Action Plan