STAFF REPORT
City of Lancaster
PH 3
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:Community Development Block Grant (CDBG-CV) CARES Act Substantial Amendment to the 2019-2020 Action Plan.
Recommendation:
a. Conduct a public hearing and, upon accepting public testimony; b. Approve the Community Development Block Grant (CDBG-CV) CARES Act Substantial Amendment to the 2019-2020 Action Plan (“Action Plan”) to allow for the reprogramming of $1,519,396.46 in CDBG-CV funds to one (1) new activity; and c. Authorize the City Manager, or designee, to execute and transmit all necessary contracts and associated documents, including the Substantial Amendment to the Action Plan, and any additional amendments, 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 previously adopted Action Plans and Substantial Amendments.
Create a new project for the following accounts:
31022000.4998 - $1,519,396.46 (Project# AVHVAC.CDBGGRANT) 31022000.5656 - $1,519,396.46 (Project# AVHVAC.CONST)
The reprogramming of CDBG-CV funds will ensure that the City’s program funds are utilized 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 Consolidated Plan and Action Plan, thereby allocating those resources into the CDBG-CV budget. 2 0
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Background:
Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the President signed it on March 27, 2020, authorizing $2.2 trillion in a variety of stimulus measures to prevent, prepare for, and respond to the COVID-19 pandemic. The law includes a special allocation of the Community Development Block Grant (CDBG-CV) to enable communities to effectively address the impact of COVID-19, especially for low- and moderate-income residents.
These funds are separate and distinct from the City’s formula CDBG funds and must comply with the requirements summarized in 24 CFR § 570 and the flexibilities authorized in the CARES Act and summarized in Federal Register Notice 6218-N-01.
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 repurposing funds to activities that will prepare for, prevent, and respond to COVID-19 principally for persons of low- and moderate-income throughout the City.
Per the City’s Citizen Participation Plan, a Substantial Amendment to an Action Plan is required when a “substantial” change is proposed as it relates to funding priorities, proposed activities, goals, and objectives. The Substantial Amendment to the Action Plan is necessary because the City wishes to cancel the Urgent Need City Emergency Response Program, Emergency Rental Assistance Program, and CV Administration totaling $1,519,396.46, to reallocate those funds to the newly proposed HVAC Replacement – Antelope Valley Fairgrounds Project.
Given the urgency to design and launch programs with CDBG-CV funds, the CARES Act authorized Grantees with the flexibility of providing an abbreviated public review period, such that residents are provided with reasonable notice of the amendment for the proposed use of the CDBG-CV funds. Pursuant to the City’s CPP, the City is required to conduct this abbreviated 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 Consolidated Plan and Action Plan was published in the Antelope Valley Press on June 23, 2025. The Substantial Amendment was made available on the City’s website, Finance & Technology Information Department and City Clerk’s Office for a 5-day public review period starting on July 2, 2025, and ending on July 8, 2025.
As such, staff recommends amending the Action Plan as noted in the enclosed Substantial Amendment. The proposed program is consistent with the Consolidated Plan goals and will provide immediate assistance to the community.
Analysis:
The following narrative provides the description and other information for the proposed Action Plan activity.
Activity
HVAC Replacement – Antelope Valley Fairgrounds
As part of the City of Lancaster’s efforts to prevent, prepare for, and respond to the coronavirus (COVID-19) pandemic, the City proposes to use Community Development Block Grant – Coronavirus (CDBG-CV) funds to support the replacement of HVAC systems across multiple buildings at the Antelope Valley Fairgrounds. This capital improvement project is designed to 2 0
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ensure that public facilities used for emergency response, community events, and public gatherings are equipped with modern ventilation systems that meet health and safety standards.
The HVAC systems in several of the fairgrounds’ structures are outdated, inefficient, and inadequate for ensuring proper air circulation, filtration, and temperature control in compliance with CDC guidelines for air quality in public indoor settings. The replacement project will include the removal of existing units, installation of new energy-efficient HVAC systems, integration of upgraded filtration and air purification components, and necessary electrical or structural modifications to accommodate the new systems.
The fairgrounds serve as a critical location for COVID-19 response activities, including community testing, vaccination efforts, and emergency distribution events. Enhancing indoor air quality and thermal comfort is vital to supporting the safe use of these facilities for continued pandemic recovery activities and long-term community resilience.
Table 1: Proposed Activity Budget Modifications and Reprogrammed Activity Budgets Activity Title Existing
Budget New Budget Difference
Rental Assistance Program $751,861.00 $0.00 ($751,861.00) City Emergency Response $418,655.00 $0.00 ($418,655.00) CV Administration $348,879.00 $0.00 ($348,879.00)
Unprogrammed $2.46 $0.00 ($2.46)
HVAC Replacement-Antelope Valley Fairgrounds $0.00 $1,519,396.46 $1,519,396.46 Total $0 Alternatives:
1. Provide alternative directions for staff.
Attachment:
1. CDBG-CV CARES Act Substantial Amendment to the 2019-2020 Action Plan