STAFF REPORT
Lancaster Housing Authority
HA CC 2
11/18/2025
TN
Date: November 18, 2025
To: Chairman Parris and Authority Members
From: Patti Garibay, Director - Community Development
Becky Bartlett, Manager - Housing
Subject: Approve Extension to Exclusive Negotiating Agreement with Grupe Investment Company, Inc.
Recommendation:
1. Authorize the Executive Director or his designee to negotiate, finalize and execute a second Extension to the original Exclusive Negotiating Agreement (ENA) with Grupe Investment Company, Inc. for an additional three-month period for the potential disposition of property owned by the Lancaster Housing Authority. No deposit will be required.
2. Authorize the Executive Director or his designee to negotiate, finalize and execute all related documents in a form approved by the City Attorney.
G.C. Section 84308: No
Fiscal Impact:
None.
Background:
The Lancaster Housing Authority (“Authority”) owns a number of properties intended for affordable housing development. One such property, “HNR-3,” is an assemblage of four parcels comprised of approximately 35 acres located on the former Antelope Valley Fairgrounds at the northeast corner of Avenue I and Division Street.
A Request for Proposal (“RFP”) was completed in early 2023. On May 27, 2025, the Housing Authority authorized staff to enter into an Exclusive Negotiating Agreement (ENA) with Grupe Investment Company, Inc. This agreement represented the Authority’s opportunity to take the first steps toward the development of this property. Grupe is proposing to acquire approximately
12.9 acres of the property from the Housing Authority (depicted in Exhibit C of the subject ENA; the “Grupe Portion”), and thereafter, securing all necessary entitlements to redevelop the 2 2
3 9
Grupe Portion with approximately 200 units of workforce for-sale housing (the “Grupe Project”).
On August 26, 2025, the Housing Authority granted a 90-day extension to the ENA with an expiration date of November 27, 2025. While progress has been made in the development of the ENA, additional time is necessary to fully develop the ENA due to the complexities of the project. The proposed extension will enable staff and the developer to continue formal negotiations with the goal of crafting a Disposition and Development Agreement (DDA) for the sale and development of the property. The ENA term will be for an additional three months, with a new expiration date of February 25, 2026. If the staff and the developer agree on a term sheet by the deadline, the ENA continues and the Parties have until 12 months from the Effective Date of the ENA to negotiate and execute the DDA. If the staff and developer are unable to reach mutually agreeable terms during the ENA period, the property would again be marketed to other potential developers. The ENA does not bind the Authority to sell the property. The resulting DDA would be subject to approval by the Authority.
The envisioned project has incredible potential to meet a significant need in our community:
affordable first-time homebuyer opportunities for moderate and workforce households that are otherwise mostly shut out of the homeownership market. An attractive design, together coupled with quality-of-life features fostering that foster walkability and recreation, will make this a sought-after destination for workforce households, particularly those with children as well as young couples just beginning to build their lives together. These homes will assist its owners in achieving the benefits of homeownership: housing stability and building generational wealth, thereby serving a need in Lancaster for generations to come.
Attachment:
Attachment A: Proposed Exclusive Negotiating Agreement (ENA) Extension with Grupe Attachment B: Exclusive Negotiating Agreement (ENA) Amendment No. 1 with Grupe