STAFF REPORT
City of Lancaster
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9/9/2025
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Date:September 9, 2025
To: Mayor Parris and City Council Members
From:George N. Harris II, Senior Director/Treasurer Admin Services Subject:Substantial Amendment to the City’s 2025-2026 Action Plan 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 reprogramming of $130,259 in Community Development Block Grant (CDBG) funds from the First Time Homebuyer Program to the Antelope Valley Foster Friends Program; 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 into activities in previously adopted Action Plan and Substantial Amendments. The First Time Homebuyer Program Project (FTHB PRGM.CDBGGRANT 31022000.5656) will be reduced by $130,259.00. The same amount will be added into a new Project for the Antelope Valley Foster Friends Program (CDBG26.AVFOSTER 31022000.5656). The reprogramming of the CDBG funds to the Antelope Valley Foster Friends Program (Level Up - Gaming Center) will ensure that the City’s program funds are utilized to improve the quality of life for the City’s residents. The 2 1
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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 reciving 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 the 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 is proposing to add one (1) new project to the 2025-26 Action Plan.
Pursuant to 24 CFR 91.505(a), a Substantial Amend requires specific citizen participation actions, including a Public Hearing and 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 August 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 August 9, 2025, and ending on September 9, 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
CDBG First Time Homebuyer Program
The program will provide financial assistance to rehabilitate low-income single family owner- occupied homes, including mobile homes. Such improvements will address health and safety concerns, code violations, and lead based paint requirements. The program is anticipated to benefit 11 households.
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Antelope Valley Foster Friends Program
The program is a youth-led social enterprise designed to empower foster youth and those aging out of the foster care system through paid employment, life skills training, and mentorship in a safe, tech-driven environment. The program will offer hands-on experience in retail, marketing, customer service, and IT, while also providing workshops in financial literacy, goal setting, and career development. By combining the global appeal of gaming with workforce development, the program will create a vibrant community hub that fosters creativity, confidence, and opportunity.
The program is anticipated to benefit 12-14 foster youth.
Table 1: Proposed Activity Budget Modifications and Reprogrammed Activity Budgets Program Year/ Activity Title Existing Budget New Budget Difference CDBG Program
CDBG FTHB Program $1,596,001.00 $1,465,742.00 -$130,259.00 CDBG Antelope Valley Foster Friends Program $0.00 $130,259.00 $130,259.00 Sub-Total $1,596,001.00 $1,596,001.00 $0
Alternatives:
1. Provide alternative directions to staff.
Attachment:
1. Substantial Amendment to the 2025-2026 Annual Action Plan