26-27 Action Plan - Draft (For Public Review) — Lancaster City Council, April 28, 2026

Draft
Annual Action Plan
FY 2026-2027

City Council
April 28, 2026

City of Lancaster i 20 26 Annual Action Plan

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City of Lancaster ii 20 26 Annual Action Plan

Table of Contents
Table of Contents ....................................................................................................................................... ii Version History ........................................................................................................................................... iii Executive Summary .............................................................................................................................. - 1 - AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) ................................................................ - 1 - PR-05 Lead & Responsible Agencies – 91.200(b) .............................................................................. - 7 - AP-10 Consultation – 91.100, 91.200(b), 91.215(l) ........................................................................... - 8 - AP-12 Participation – 91.105, 91.200(c) .......................................................................................... - 21 - Expected Resources ........................................................................................................................... - 26 - AP-15 Expected Resources – 91.220(c)(1,2)................................................................................... - 26 - Annual Goals and Objectives .............................................................................................................. - 32 - AP-20 Annual Goals and Objectives ................................................................................................ - 32 - AP-35 Projects – 91.220(d) ............................................................................................................. - 34 - AP-38 Project Summary .................................................................................................................. - 35 - AP-50 Geographic Distribution – 91.220(f) ...................................................................................... - 40 - Affordable Housing ............................................................................................................................. - 41 - AP-55 Affordable Housing – 91.220(g) ............................................................................................ - 41 - AP-60 Public Housing – 91.220(h) ................................................................................................... - 43 - AP-65 Homeless and Other Special Needs Activities – 91.220(i) ..................................................... - 44 - AP-75 Barriers to Affordable Housing .............................................................................................. - 47 - AP-85 Other Actions – 91.220(k)..................................................................................................... - 49 - Program Specific Requirements .......................................................................................................... - 52 - AP-90 Program Specific Requirements – 91.220(l)(1,2,4) ................................................................ - 52 -

Action Plan Tables
Table 1 – Strategic Plan Summary ......................................................................................................... - 4 - Table 2 – Responsible Agencies ............................................................................................................ - 7 - Table 3 - Agencies, groups, organizations who participated ................................................................ - 17 - Table 4 - Other local / regional / federal planning efforts ...................................................................... - 17 - Table 5 – Citizen Participation Outreach .............................................................................................. - 25 - Table 6 - Expected Resources – Priority Table ..................................................................................... - 27 - Table 7 – Goals Summary ................................................................................................................... - 32 - Table 8 - Project Information ............................................................................................................... - 34 - Table 9 - Geographic Distribution ........................................................................................................ - 40 - Table 10 – One Year Goals for Affordable Housing by Support Requirement ....................................... - 41 - Table 11 – One Year Goals for Affordable Housing by Support Type ................................................... - 41 -

City of Lancaster iii 20 26 Annual Action Plan

Version History
No. Summary of Changes
1 Published Draft for Public Comment: 3/27/26 Sent to HUD for Approval: 5/15/26 Conducted Public Hearing: 4/28/26 Approved by HUD: TBD
Original 2026-2027 Annual Action Plan (AAP), in cluding Substantial Amendment to the 2025-2026 AAP repurposing $81,000 from the City’s CDBG First-Time Homebuyer Program into the 2026-2027 PY.

First-Time Homebuyer Program:

Original: $1,465,742
Proposed Reduction: -$81,000
Revised Budget: $1,384,742

City of Lancaster - 1 - 2026 Annual Action Plan

Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)

1. Introduction
The 2026-2027 Annual Action Plan (AAP) is a one-year pl an to address community development and low- and moderate-income housing needs in the City. It is the second AAP of five annual plans implementing the 2025-2029 Consolidated Plan - Strategic Plan goals for the annual investment of Federal Community Development Block Grant (CDBG) and HOME Investme nt Partnerships (HOME) funds from the U.S.

Department of Housing and Urban Development (HUD). The AAP identifies available resources, annual goals, projects, and activities for the period beginning July 1, 2026, and ending June 30, 2027.

The City receives CDBG and HOME funds from HUD on a formula basis each year, and in turn, allocates funds for projects designed to achieve the goals and outcomes included in the 2025-2029 Consolidated Plan - Strategic Plan. The CDBG and HOME programs pr ovide for a wide range of eligible community development and housing projects that benefit low- and moderate-income City residents.

Community Development Block Grant (CDBG)
The CDBG program, established under the Housing an d Community Development Act of 1974, is a flexible federal funding source designed to address a wide range of housing and community development needs.

HUD evaluates the City’s Consolidated Plan and program performance based on three (3) primary objectives: providing decent housing, creating suit able living environments, and expanding economic opportunities for low- and moderate-i ncome households. To qualify for CDBG funding, each activity must meet one (1) of the following national objectives:
• Benefit low- and moderate-income persons;
• Aid in the prevention or elimination of slums and blight; or • Address an urgent community development need (usually the result of a natural disaster).

Each year, the City certifies with the submission of it s AAP that it has given maximum feasible priority to activities which meet the first and se cond national objectives above. Addi tionally, the City certifies that no less than 70 percent of the CDBG funds received, over a three-year certification period, will be designed to benefit low- and moderate-income persons.

HOME Investment Partnerships (HOME)
The HOME program, established under the Cranston-Gon zalez National Affordable Housing Act of 1990, is the largest federal program dedicate d to affordable housing developmen t. Designed to increase the supply of safe and affordable housing for low- and mode rate-income households, the HOME program is often implemented in collaboration with non-profit housin g developers, public agencies, and private entities.

Eligible activities supported by HOME funds include new construction, acquisition, and rehabilitation of affordable housing, homebuyer assistance programs, and tenant-based rental assistance.

City of Lancaster - 2 - 2026 Annual Action Plan

2026-2027 Program Year
For the 2026-2027 program year, the City anticipa tes it will receive $1,506,698 in CDBG funds and $609,859.81 in HOME funds. In addition, the City will repurpose $81,000 and $108,691.65 in prior year CDBG and HOME dollars, respectively, for a tota l CDBG budget of $1,587,698 and HOME budget of $718,551.46 during the 2026-2027 program year. The 2026-2027 AAP will allocate its current and prior year CDBG and HOME funds to the following activities to be implemented from July 1, 2026 through June 30, 2027.
2026-2027 CDBG Activities
Public Service*
Lancaster Homeless Group dba Street Company: Coffee Manufacturing Homeless Employment Program $42,000
Lost Angels Career Center: The Work Program $109,005
Antelope Valley Partners for Health: Feed the Need $75,000 Antelope Valley Foster Friends: Foster Youth Support** $81,000 Sub-Total: $307,005
Capital
City of Lancaster: Sgt. Steve Owen Memorial Park Stanley Kleiner Building Re-Roof Improvement Project $979,354
Sub-Total: $979,354
Administration
City of Lancaster: CDBG Administration $261,339
Fair Housing Foundation: Fair Housing Services (Admin CAP) $40,000 Sub-Total: $301,339

TOTAL 2026-2027 CDBG PROGRAM $1,587,698
* The City is anticipated to receipt no less than $540,000 in program inco me during the 2025-2026 PY. Per 24 CFR 570.201(e)(1), the amount of CDBG funds obligated for public service activities in each program year to an amount no greater than 15 percent of the entitlem ent grant made for that program year plus 15 percent of program income received during the grantee’s immediately preceding program year. ** $81,000 was pulled from the City’s 2025-2026 CDBG First-Time Homebuyer Program. 2026-2027 HOME Activities
Housing
CHDO Set Aside $91,479
Homebuyer Assistance Program $566,087.46
Sub-Total: $657,566.46
Administration
Program Administration $60,985
Sub-Total: $60,985

TOTAL 2026-2027 HOME PROGRAM $718,551.46

City of Lancaster - 3 - 2026 Annual Action Plan

As of the date of the preparation of this draf t document, HUD has not yet released the 2026-2027 Annual Allocations. For this reason, HUD has advised the City to prepare this draft document utilizing the current year annual allocation and include “contingency provisio n” language detailing how the City will adjust its proposed Plan once the actual allocation amounts become known. As such, the following methodology shall be employed if the City’s 2026-2027 annual allocation changes.

CDBG
• Should the CDBG allocation be higher than $1,506,698:
o Admin – Fair Housing will remain funded at $40,000 and the CDBG Administration budget will be increased to maximize the 20% cap for administrative activities. o Public Service – The City will not award any additional activities but will increase the award of those agencies allocated funds in the 2026-2027 AAP, proportionately, up to the 15% public service cap.
o Capital – Balance of funds will be allocated to the City’s Sergeant Owen Memorial Park Stanley Kleiner Building Re-Roof Improvement Project.
o Funding levels for all outstanding activities will remain the same as proposed in the 2026- 2027 AAP.
• Should the CDBG allocation be lower than $1,506,698:
o Admin – Fair Housing will remain funded at $40,000 and the CDBG Administration budget will be decreased to be compliant with the 20% cap for administrative activities. o Public Service – Decrease the award of th ose agencies allocated funds in the 2026-2027 AAP, proportionately, to be compliant with the 15% cap for public service activities. o Capital – Balance of funds will be deducted f rom the City’s Sergeant Owen Memorial Park Stanley Kleiner Building Re-Roof Improvement Project.
o Funding levels for all outstanding activities will remain the same as proposed in the 2026- 2027 AAP.

HOME
• Should the HOME allocation be higher than $609,859.81:
o Admin – Increase HOME Administration budget to maximize the 10% cap for Administrative activities.
o CHDO – Increase CHDO set-aside to the minimum 15% required for CHDO activities. o Housing – Balance of funds shall be awarded to the Homebuyer Assistance Program. • Should the HOME allocation be lower than $609,859.81:
o Admin – Decrease HOME Administration budget to be compliant with the 10% cap for Administrative activities.
o CHDO – Decrease CHDO set-aside to the minimum 15% requirement for CHDO activities. o Housing – Balance of funds shall be deducted from the Homebuyer Assistance Program.

City of Lancaster - 4 - 2026 Annual Action Plan

2. Summarize the objectives and outc omes identified in the Plan The 2025-2029 Consolidated Plan is grounded in a comprehensive, data-driven needs assessment and market analysis, combined with insights gathered f rom residents, community organizations, and other local stakeholders. This approach ensures that CDBG and HO ME funds are directed towa rd high priority needs that align with the City’s goals.

Based on this, the City has identified six (6) high pr iority needs and one (one) low priority, which will be addressed through seven (7) goals over the five-year period. These goals establish a clear framework for the allocation of CDBG and HOME funds which ensure inve stments produce meaningful results. Each goal is tied to measurable outcome indicators which allow the City to track progress, assess performance, and evaluate the impact of HUD-funded activities.

The City will address the following objectives during the 2026-2027 program year. These objectives are as follows:

Goal Name Category Need(s) Addressed Goal Outcome Indicator 1 Provide
Supportive
Human Services
Non-Housing
Community
Development
Supportive Human
Services for Vulnerable
Populations
Public Service Activities Other
than Low/Mod Income Housing
Benefit:
373 Persons Assisted
2 Enhance Public
Facilities &
Infrastructure
Non-Housing
Community
Development
Public facilities and
Infrastructure
Improvements
Public Facility or Infrastructure
Activities other than Low/Mod
Income Housing Benefit:
150,780 Persons Assisted
3 Develop
Affordable
Homeowner
Housing
Affordable
Housing
Affordable Homeowner
Housing Development
Homeowner Housing Added:
1 Household/Housing Unit
4 Expand
Homeownership
Opportunities
Affordable
Housing
Homeownership
Opportunities
Direct Financial Assistance to
Homebuyers:
4 Households Assisted
5 Provide Fair
Housing
Services
Affordable
Housing
Ensure Equal Access to
Housing Opportunities
Public Service Activities other
than Low/Mod Income Housing
Benefit:
180 Persons Assisted
6 Planning &
Administration All All Other: 2
Table 1 – Strategic Plan Summary

City of Lancaster - 5 - 2026 Annual Action Plan

3. Evaluation of past performance
The City is currently implementing the projects an d activities included in the 2025-2026 AAP. City staff continually evaluate the CDBG and HOME Programs and adjust and/or process improvements where and when necessary.

As of the preparation of this document, the City has not yet finalized its 2025-2026 program year, and therefore are unable to report on those accomplishments. Accomplishment data for the 2025-2026 program year will be reported in the City’s 2025-2026 Consolid ated Annual Performance and Evaluation Report (CAPER) which is anticipated to be completed in September 2026.

During the 2024-2025 program year, the City and its partners were able to:
• Provide fair housing services to 152 unduplicated residents. • Provide vocational skills training in classic car restoration to 31 unduplicated residents. • Provide vocational skills training and job placements as coffee baristas to 17 unduplicated homeless individuals.
• Complete the construction of the Mariposa Park Improvement Project Phase I which assisted a total of 18,950 unduplicated persons.
• Assisted 14 low - and moderate-income households wi th the rehabilitation of their home under the City’s Housing Rehabilitation Program (HRP).
• Provided first-time homebuyer assistance to eight (8) low- and moderate-income households.

4. Summary of Citizen Pa rticipation Process and consultation process A public comment/review period notice outlining the proposed use of funds for the 2026-2027 AAP was published March 27, 2026, allowing a 30-day review/c omment period starting on March 27, 2026, and ending on April 28, 2026. This notice was made in compliance with HUD guidelines and the City's approved Citizen Participation Plan (CPP) of the 2025-2029 Consolidated Plan.

A public hearing was held April 28, 2026, to rece ive public comment on the proposed 2026-2027 AAP and receive City Council action.

5. Summary of public comments
As required by HUD regulations, all comments received, and responses to said comments by the City are included in Appendix A of this AAP.

City of Lancaster - 6 - 2026 Annual Action Plan

6. Summary of comments or views not accept ed and the reasons for not accepting them All comments and views were accepted. A complete li st of comments received has been included in Appendix A of this AAP.

7. Summary
For the 2026-2027 program year, the City will allocate $1,587,698 in CDBG and $718,551.46 in HOME toward eligible activities designed to provide suitable affordable housing and improve the quality of life of its low- and moderate-income residents.

City of Lancaster - 7 - 2026 Annual Action Plan

PR-05 Lead & Responsible Agencies – 91.200(b)

1. Agency/entity responsible for preparin g/administering the Consolidated Plan The following are the agencies/entities responsible for preparing the 2026-2027 AAP and those responsible for administration of each grant program and funding source.

Agency Role Name Department/Agency
CDBG Administrator City of Lancaster Finance Department HOME Administrator City of Lancaster Finance Department Table 2 – Responsible Agencies
Narrative
The City of Lancaster’s Finance Department serves as the lead agency responsi ble for the administration and oversight of the CDBG and HOME programs.

The Finance Department ensures that CDBG and HOME investments align with community priorities, comply with HUD regulations, and are effectively manage d to maximize impact. This includes planning, implementation, financial oversight, performance moni toring, and reporting. The department works closely with non-profit organizations, for-profit entities, and public agencies to administer funds in accordance with the City’s Consolidated Plan and AAPs.

To ensure strong governance and transparency, the Ci ty actively monitors fund ed activities, provides technical assistance to subrecipients, and conducts community engagement efforts to inform future funding priorities. This ongoing oversight ensures that CDBG and HOME funds are used to achieve measurable improvements in housing, infrastructure, and public services throughout Lancaster.

Consolidated Plan Public Contact Information
City of Lancaster
Finance Department
Attn.: George N. Harris II, MPA, Director of Finance
44933 Fern Avenue
Lancaster, CA 93534
(661) 723-5988

City of Lancaster - 8 - 2026 Annual Action Plan

AP-10 Consultation – 91.100, 91.200(b), 91.215(l)

1. Introduction
Under the City Council / Manager form of government, the City Council appoints and provides policy direction to the City Manager, who is responsible for administering the city’s daily operations. As the elected legislative body of the City, the City Council has overall responsibility for the scope, direction and financing of City services. In setting policy, the City Council works closely with citizen advisory commissions and committees, considers staff information, recommendations and receives comments from the general public during open forums.

In the preparation of the 2026-2027 AAP, the City has consulted with public and private departments, agencies, social services and non-profit organizatio ns to understand the community’s needs and available resources. Department staff prov ided input on how CDBG and HOME resources could be used and leveraged to provide services. The City solicited feedback through the following methods:
• Community Partners Meetings
• Notice of Funding Availability
• Workshops
• Public Notices
• Posting of documents on the City’s website
• Public Hearings
• Receipt of written and oral comments
Additionally, cities and governments within the regi on were contacted and consulted as well. The input received help to establish and inform the objectives and goals described in the Strategic Plan.

Provide a concise summary of the jurisdiction's acti vities to enhance coordination between public and assisted housing providers and priv ate and governmental health, ment al health and service agencies (91.215(I)).

The City recognizes the importance of careful coordi nation and alignment among various service providers to maximize the effectiveness of the CDBG and HOME programs. As a result, during the development of the 2026-2027 AAP, the City consulted with organizations that provide assisted housing, health services, and other community-focused programs.

The City further recognizes the importance of cont inued coordination and alignment during the upcoming five-year planning period with these organizations an d agencies. The City will reinforce these partnerships through the implementation of the Notice of Funding Availability (NOFA) process for CDBG and HOME funds each year and through technical assistance provided to subrecipients.

City of Lancaster - 9 - 2026 Annual Action Plan

Describe coordination with the Cont inuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness The Los Angeles Continuum of Care (CoC) is comprised of a network of public, private, faith-based, for- profit, and non-profit service providers who utilize seve ral federal, state, and local resources to provide services for homeless people. The region’s municipaliti es, including the City of Lancaster, also provide resources for services that assist the homeless and those at risk of becoming homeless. The non-profit and faith-based community plays a key role in the current CoC system. Hundreds of agencies throughout the region provide programs ranging from feeding the homeless on the street to creating permanent supportive housing opportunities. These services are available to homeless families with child ren, and single men and women. The non-profit and faith-based community also serves special needs populations, such as victims of domestic violence, veterans, the disabled, and youth.

The CoC guides the development of homeless strategi es and the implementation of programs to end homelessness throughout the region. The City regularly consults with the CoC to identify needs in the jurisdiction and its objectives to address the needs of different homeless populations, including chronically homeless families and individuals, families with child ren, veterans, unaccompanied youth, and persons at risk of homelessness. The City continues to coordinate with the CoC to clarify existing needs and objectives and identify opportunities for collaboration during the five-year planning process.

Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards an d evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS
Although not a direct Emergency Solutions Grant (ESG ) entitlement community, the City consulted with a number of housing, social services, governmental, an d other entities involved in housing and community development in the City. Through these consultations, the City identified the holistic needs of the community, including those for extremely low-income households and homeless persons and how the City can continue to effectively coordinate with regi onal homeless service providers to best meet the needs of these populations. The CoC was consulted to discuss performance standards, outcome evaluation methodologies, and policies and procedures for the use of HMIS.

City of Lancaster - 10 - 2026 Annual Action Plan

2. Describe Agencies, groups, organizations an d others who participated in the process and describe the jurisdictions consultations with housing, social service agencies and other entities 1 Agency/Group/Organization Legal Aid Society
Agency/Group/Organization Type Services-Victims of Domestic Violence What section of the Plan was addressed by
Consultation?
Homeless Strategy
Non-Homeless Special Needs
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?

To obtain a comprehensive assessment of the needs
and priorities within the community, the Consolidated
Plan process included cons ultation and engagement
with City residents, servic e providers, and selected
departments through surveys, meetings, and email.
4 Agency/Group/Organiz ation Project Sister
Agency/Group/Organization Type Servic es-Victims of Domestic Violence What section of the Plan was addressed by
Consultation?
Homeless Strategy
Non-Homeless Special Needs
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs
and priorities within the community, the Consolidated
Plan process included cons ultation and engagement
with City residents, servic e providers, and selected
departments through surveys, meetings, and email.

City of Lancaster - 11 - 2026 Annual Action Plan

5 Agency/Group/Organization Valley Oasis
Agency/Group/Organization Type Services-Victims of Domestic Violence What section of the Plan was addressed by
Consultation?
Homeless Strategy
Non-Homeless Special Needs
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?

6 Agency/Group/Organization City of Lancaster
Agency/Group/Organization Type Local Government
Housing
Services-Housing
Service- Children
Services-Elderly
Planning Organization
What section of the Plan was addressed by
Consultation?
Housing Needs Assessment
Homelessness Strategy
Non-Homeless Special Needs
Economic Development
Lead-Based Paint Strategy
Anti-Poverty Strategy
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?

City of Lancaster - 12 - 2026 Annual Action Plan

8 Agency/Group/Organization Calif ornia Department of Technology Agency/Group/Organization Type State Government
Narrowing the digital divide
What section of the Plan was addressed by
Consultation?
Other-Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs
and priorities within the community, the Consolidated
Plan process included cons ultation and engagement
with City residents, servic e providers, and selected
departments through surveys, meetings, and email.
9 Agency/Group/Organization HighSpeedInternet.com
Agency/Group/Organization Type Broadband ISP
What section of the Plan was addressed by
Consultation?
Other-Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs
and priorities within the community, the Consolidated
Plan process included cons ultation and engagement
with City residents, servic e providers, and selected
departments through surveys, meetings, and email.
10 Agency/Group/Organization Antelope Valley Chamber of Commerce Agency/Group/Organization Type Business Leader
What section of the Plan was addressed by
Consultation?
Economic Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?

To obtain a comprehensive assessment of the needs
and priorities within the community, the Consolidated
Plan process included cons ultation and engagement
with City residents, servic e providers, and selected
departments through surveys, meetings, and email.
11 Agency/Group/Organization Los Angeles County Department Child Protective Services
Agency/Group/Organization Type Child Welfare Agency
Foster Care Agency/Facility
Services-Children
Publicly Funded Institution
What section of the Plan was addressed by
Consultation?
Non-Homeless Special Needs
Other-Non-Housing Community Development
Strategy
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs
and priorities within the community, the Consolidated
Plan process included cons ultation and engagement
with City residents, servic e providers, and selected
departments through surveys, meetings, and email.

City of Lancaster - 13 - 2026 Annual Action Plan

12 Agency/Group/Organization Ventura Foundation
Agency/Group/Organization Type Civic Leader
What section of the Plan was addressed by
Consultation?
Other-Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?

13 Agency/Group/Organization Los Angeles Homeless Services Authority (LAHSA) Agency/Group/Organization Type Continuum of Care
Local Government
Services-Homeless
Regional Organization
What section of the Plan was addressed by
Consultation?
Homelessness Strategy
Anti-Poverty
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs
and priorities within the community, the Consolidated
Plan process included cons ultation and engagement
with City residents, servic e providers, and selected
departments through surveys, meetings, and email.

14 Agency/Group/Organization Los Ange les County Sheriff’s Department – Lancaster Station
Agency/Group/Organization Type Local Government
Emergency Management Agency
Services-Homeless
What section of the Plan was addressed by
Consultation?
Homeless Strategy
Other-Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?

City of Lancaster - 14 - 2026 Annual Action Plan

15 Agency/Group/Organization Federal Emergency Management Agency Agency/Group/Organization Type Emergency Management
Floodplain Management Agency
Federal Government
What section of the Plan was addressed by
Consultation?
Housing Need Analysis
Homelessness Strategy
Non-Homeless Needs Assessment
Other-Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?

City of Lancaster - 15 - 2026 Annual Action Plan

18 Agency/Group/Organization Coffee 4 Vets
Agency/Group/Organization Type Services-Homeless
Services-Veterans
Services-Employment
What section of the Plan was addressed by
Consultation?
Homelessness Strategy
Homelessness Strategy- Veterans
Non-Homeless Special Needs
Anti-Poverty

How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
To obtain a comprehensive assessment of the needs
and priorities within the community, the Consolidated
Plan process included cons ultation and engagement
with City residents, servic e providers, and selected
departments through surveys, meetings, and email.

19 Agency/Group/Organization Penny Lane
Agency/Group/Organization Type Services-Homeless
What section of the Plan was addressed by
Consultation?
Homelessness Strategy
Homeless Needs-Unaccompanied Youth
Anti-Poverty
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?

20 Agency/Group/Organization Antelope Valley Dream Center Agency/Group/Organization Type Services-Education
Services-Disabilities
What section of the Plan was addressed by
Consultation? Non-Homeless Special Needs
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?

City of Lancaster - 16 - 2026 Annual Action Plan

21 Agency/Group/Organization Fair Housing Foundation
Agency/Group/Organization Type Services-Fair Housing
What section of the Plan was addressed by
Consultation?
Housing Need Analysis
Homelessness Strategy
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?

23 Agency/Group/Organization Palmdale Water District
Agency/Group/Organization Type Water District/Agency
What section of the Plan was addressed by
Consultation?
Other-Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?

24 Agency/Group/Organization Antelope Valley Partners for Health Agency/Group/Organization Type Services – Health
Services – Seniors
Servies - Homeless
What section of the Plan was addressed by
Consultation?
Other-Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?

City of Lancaster - 17 - 2026 Annual Action Plan

25 Agency/Group/Organization Lost Angels Career Center Agency/Group/Organization Type Services – Youth
Services - Employment
What section of the Plan was addressed by
Consultation?
Other-Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?

Agency/Group/Organization Type Services - Homeless
What section of the Plan was addressed by
Consultation?
Other-Non-Housing Community Development
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?

Table 3 - Agencies, groups, organizations who participated Identify any Agency Types not consulted and provide rationale for not consulting The City maintains a list of agencies, organizations an d other stakeholders that have expressed an interest in the City’s CDBG and HOME programs and invited representatives from each entity to participate at multiple points in the planning process. All agencies were strongly encouraged to attend community meetings and participate in surveys.

Any agency or organization that was not consulted and would like to be included in the City’s list of stakeholders, the agency or organization may contact the Finance Department at (661) 723-6158.

Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead
Organization
How do the goals of your Strategic Plan overlap with the goals of each plan?
Continuum of Care LAHSA Consultation with the CoC indicates that the City’s AAP goals are consistent with the CoC’s strategies.

Housing Element City of
Lancaster
The goals included in the AAP ar e consistent with the Housing Element policies and objectives
Lancaster Community
Homelessness Plan
(LCHP)
City of
Lancaster The strategies included in the AAP are consistent with the Hazard Mitigation Plan
Table 4 - Other local / regional / federal planning efforts

City of Lancaster - 18 - 2026 Annual Action Plan

Describe cooperation and coordination with other public entities, including the State and any adjacent units of general local government, in the implementation of the Consolidated Plan (91.215(l)) To enhance coordination among the CoC, public and assisted housing providers and private and governmental health, mental health and service agencies, the City invite d each of these entities to provide input on the needs of the community in the development of its Consolidated Plan.

The City works with subrecipients of CDBG and HOME funds to ensure a coordinated effort among service agencies in the region to address the needs of the City ’s residents, including but not limited to, chronically homeless individuals and families, families with childre n, veterans and their families, unaccompanied youth, and persons who were recently homeless but now living in permanent housing. To promote economic opportunities for low-income resident s, the City coordinates with subr ecipient social service agencies, businesses and housing developers to ensure that wher e there are job opportunities for low-income people in connection with HUD-assisted projects, informat ion is disseminated through appropriate channels consistent with the objectives of Section 3 of the Housing and Community Development Act of 1968.

Narrative
Broadband
The City is an urbanized community with easy access to broadband services throughout the City. According to data from 2022, the City is served by 21 internet service providers with 427 veri fied Internet plans since 2014. DSL and cable are the primary broadband types around the City’s metro area. According to the Federal Communications Commission ( FCC) there are 10 active fixed internet providers in Lancaster. Viasat, Inc., Space Exploration Technologi es Corp., Hughes Network Systems, LLC and Charter Communications that reach at least 80 percent of residences in the City . There are four active mobile internet providers. The main mobile internet providers are AT&T Inc., T-Mob ile USA, Inc., Verizon Communications, Inc. and Dish Network Corporation.

Most affordable housing developments in California require multiple layers of funding sources, such as Low- Income Housing Tax Credits (LIHTC) and HUD fund s. These programs either mandate or encourage broadband services. All affordable housing developmen ts in the City have access to broadband services.

However, to address consultation requirements regarding broadband, the City coordinated with some of its main service providers including but not limited to Spectrum, Frontier, AT&T, and Earthlink to aid in narrowing the digital divide. While broadband is available through multiple providers in the City resulting in increased competition, costs may remain excessive for some of the City residents. For this reason, access to high- speed broadband at affordable rates remains a need in the City, especially since COVID-19 which required immediate access to information to ensure individuals were compliant with social distancing requirements to safeguard against immediate infection and school closures which required students to learn from home. The City has most recently worked with HP Communications, Inc and Race Communications in completing micro- trenching throughout the City to expand their network an d high-speed fiber internet at affordable rates for low-income individuals and families.

City of Lancaster - 19 - 2026 Annual Action Plan

Resilience
Flooding - Floods occur when there is too much water on the ground to be held within local water bodies (streams, lakes, retention/detention areas), causing water to accumulate in naturally dry areas. The City’s Safety Element of the General Plan identifies location s within the city that ar e susceptible to flooding.

However, due to the relatively flat nature of the City, the majority of the City is not subject to this hazard. The National Flood Insurance Program (N FIP) was created in 1968 to help communities adopt more effective floodplain management programs and regulations. The City consulted with FEMA, who is responsible for implementing the NFIP and approves the floodplain management plans for participating cities and counties.

The City participates in the NFIP and uses Chapter 17, Title 40, Section 190 of the City’s Municipal Code to administer flood management regula tions. During the consultation p rocess with FEMA and County Flood Control District, the following goals were identified to help to reduce flood impacts:
- Minimize the potential for loss of life, physical injury, property damage, and social disruption resulting from a FEMA 100-year flood.
- Require structures designed for human occupancy with the 100-year floodplain to comply with the City’s floodplain ordinance.
- Retain undeveloped or vacant land within the 100- year floodplains as very low-density rural uses or open space uses where plans for the construction of flood control facilities are absent. - Require development, redevelopment, or major remo dels to reduce on-site drainage flows below existing levels and increase groundwater recharge where appropriate. - Design storm drainage infrastructure to acco mmodate existing and anticipated storm flows associated with changing climatic conditions.

Water Resources - Several years ago, leaders and agencies in the Antelope Valley Region recognized the need for regional cooperation and planning. To repr esent the broad interests within the Antelope Valley Region, several organizations joined to form a Regional Water Management Group (RWMG) to work together and create this IRWM Plan. Members of the RWMG in clude the Antelope Valley-East Kern Water Agency (AVEK), Antelope Valley State Water Contractors Asso ciation (AVSWCA), City of Lancaster, City of Palmdale, Littlerock Creek Irrigation District, Los Angeles County Sanitati on District (LACSD) Nos. 14 and 20, Los Angeles County Waterworks District No. 40 (LAC WD 40), Palmdale Water District (PWD), Quartz Hill Water District (QHWD), and Rosamond Community Services District (RCSD). These 11 public agencies signed a Memorandum of Understanding (MOU) to defi ne what their roles and responsibilities are in developing and moving forward with implementation of the AV IRWM Plan. The decision-making structure of the MOU provides the RWMG with the responsibility to make formal decisions regarding the scope and content of the AV IRWM Plan. These agencies agreed to contribute funds to help develop the AV IRWM Plan, provide and share information, review and comment on drafts, adopt the final AV IRWM Plan, and assist in future grant applications for the priority projects iden tified in the Plan. (2019 AV IRWM Plan). The 2019 AV IRWM Plan identified the following goals:
- How to reliably provide the quantity and quality of water that will be demanded by a growing population.

City of Lancaster - 20 - 2026 Annual Action Plan

- Options to satisfy agricultural users’ demand for reliable supplies of reasonable cost irrigation water. - Opportunities to protect, enhance, and manage current water resources and the environmental resources for human and natural benefit within the Antelope Valley Region.

The AV IRWM Plan also identified the following issues and needs:
- Concern for meeting water quality regulations.
- Closed basin with no outfall for discharge.
- Must provide wastewater treatment for growing population.

Emergency - Emergency preparedness involves considerations beyond identifying the hazards themselves.

The maintenance of a comprehensive disaster preparedne ss plan and the ability to implement that plan is critical to residents' and businesses' safety during an emergency. The Emergency Operations Plan (EOP) is primarily responsible for informing the City's emer gency management strategies. These strategies are typically organized under four (4) categories: mitiga tion, preparedness, response, and recovery. During consultation with Los Angeles County Sheriff’s Department, Los Angeles County Fire Department, Antelope Valley Community Emergency Response TEAM (CERT), it was determined that:
- Emergency management and disaster preparedness, especially in the event of an earthquake, must be prioritized, as supplies and aid from outside the city may take several days to arrive. - New developments will be required to have adequate circulation networks and meet local and State requirements for ingress/egress and evacuation needs.
- The City's EOP shall meet Standardized Emerge ncy Management System (SEMS) and National Incident Management System (NIMS) requirements and coordinate with neighboring jurisdictions and the Operational Area to prepare, respond, and recover from emergency situations. - Roadway capacity improvements w ill prioritize routes identified for evacuation and emergency response.
- The continued importance of training and exercise s coupled with incorporating best practices and new technologies will better prepare the City to respond to emergency situations. - The importance of continuing to provide educat ional programs and information to the public regarding emergency preparedness helps keep these important issues top-of-mind. - Addressing challenges and constr aints within the County regarding differences in jurisdictional requirements, lane reductions, different roadway st andards, road maintenance responsibilities, and coordination of activities can create challenges for evacuation.

City of Lancaster - 21 - 2026 Annual Action Plan

AP-12 Participation – 91.105, 91.200(c)

1. Summary of citizen particip ation process/Efforts made to broaden citizen participation The City encourages citizens to participate in the development of the five-year Consolidated Plan, as well as the AAP and the proposed use of CDBG and HOME fund s. City staff develope d a detailed participation process for the 2025-2029 Consolidate Plan. As required by HUD, nonprofits and community residents were provided adequate opportunity to review and comment on the Citizen Participation Plan (CPP).

Citizens were engaged through community meetings, surveys, public hearings, and individual meetings.

Citizens who participated in the p rocess received extensive informatio n about the Consolidated Plan, the citizen participation process, the HUD requirements for an entitlement City, the amount of funding that the City anticipates receiving and how those funds can be used by the City. Residents were given the opportunity to provide City staff with their input on the prioritization of community needs. Each of these efforts, including review of HUD Data and relevant policy documents, assisted the City in its goal setting efforts.

To satisfy the federal requirements at 24 CFR 91.105(e)(1)(ii), the City held two (2) public hearings to obtain residents’ views on housing and community development needs, deve lopment of proposed activities, proposed strategies and actions f or affirmatively furthering fair ho using, and a review of program performance. The City convened the first public hearing on September 9, 2025, to receive comments regarding program performance. A draft of the 2024-2025 Consolidated Annual Performance and Evaluation Report (CAPER) was made available for public review and comment from August 25, 2025, to September 9, 2025. All public comments were incorporated into the final CAPER.

To fully involve the public in the AAP process, a public comment/review period notice outlining the proposed use of funds for the AAP for the 2026-2027 program year was published March 27, 2026, allowing a 30-day review/comment period starting on March 27, 2026, and ending on April 28, 2026. This notice was made in compliance with HUD guidelines and the City’s approved CPP. All comments received during the public comment/review period are included in Appendix A. In addition, a public hearing was held April 28, 2026, to receive public comment on the proposed 2026-2027 AA P and receive City Counc il action. No comments were received during the public hearing held on April 28, 2026.

City of Lancaster - 22 - 2026 Annual Action Plan

Citizen Participation Outreach
Sort
Order
Mode of
Outreach
Target of
Outreach
Summary of
Response/attendance
Summary of Comments
received
Summary of
comments not
accepted and
reasons
URL (If
applicable)
1 Newspaper
Ad
Non-Targeted/
Broad
Community
Notice of the 15-day public review
and comment period for the draft
2024-2025 Consolidated Annual
Performance and Evaluation Report
(CAPER). The Public Notice was
published on August 22, 2025, and
invited interested parties to review
the draft document. Residents and
stakeholders were also invited to a
public hearing to provide oral
comments concerning priority
housing and community
development needs, review of
program performance, and
strategies for affirmatively
furthering fair housing.

Not applicable. Not applicable. Not
applicable.

City of Lancaster - 23 - 2026 Annual Action Plan

Sort
Order
Mode of
Outreach
Target of
Outreach
Summary of
Response/attendance
Summary of Comments
received
Summary of
comments not
accepted and
reasons
URL (If
applicable)
2 Public
Hearing
Minorities
Persons with
disabilities
Non-
targeted/broad
community
Residents of
Public and
Assisted
Housing
Public hearing on September 9,
2025, to receive comments on the
draft 2024-2025 Consolidated
Annual Performance and
Evaluation Report (CAPER) prior to
adoption and submission to HUD.

Residents were also invited to
provide oral comments concerning
priority housing and community
development needs, review of
program performance, and
strategies for affirmatively
furthering fair housing.

One question was received
regarding the homeless count
on page 19. The information in
the CAPER was provided by
LAHSA’s report from 2024
(https://www.lahsa.org/docume
nts?id=8164-2024-greater-los-
angeles-homeless-countresults-
long-version-.pdf). The
information was updated to
reflect LAHSA’s 2025
information
(https://www.lahsa.org/docume
nts?id=9394-hc-2025-press-
release-slides).

All comments
were
incorporated
into the final
2024-2025
CAPER.

Not
applicable.
3 Newspaper
Ad
Non-Targeted/
Broad
Community
Notice of the 30-day public review
and comment period for the draft
2026-2027 AAP. The public notice
invited interested residents to
review the draft documents.

Residents were also invited to a
public hearing to provide oral
comments before the City Council
on April 28, 2026.

Not applicable. Not applicable. Not
applicable.

City of Lancaster - 24 - 2026 Annual Action Plan

Sort
Order
Mode of
Outreach
Target of
Outreach
Summary of
Response/attendance
Summary of Comments
received
Summary of
comments not
accepted and
reasons
URL (If
applicable)
4 Internet
Outreach
Non-Targeted/
Broad
Community
The 2026-2027 AAP was posted on
the City's website for public review
on March 27, 2026. The public
notice solicited residents &
stakeholders to review the draft
AAP to provide written comments
by April 28, 2026.

Not applicable. Not applicable.
https://www.c
ityoflancaster
ca.org/our-
city/departme
nts-
services/hous
ing-
neighborhood
-
revitalization/
cdbg-
community-
development-
block-grant
City of Lancaster - 25 - 2026 Annual Action Plan

Sort
Order
Mode of
Outreach
Target of
Outreach
Summary of
Response/attendance
Summary of Comments
received
Summary of
comments not
accepted and
reasons
URL (If
applicable)
5 Public
Hearing
Minorities

Non-English
Speaking -
Specify other
language:

Spanish

Persons with
Disabilities

Non-
Targeted/Broa
d Community

Residents of
Public and
Assisted
Housing
Public hearing before the City
Council on April 28, 2026, to
receive comments on the draft
2026-2027 AAP prior to adoption
and submission to HUD.

No comments were received. No comments
were received.

Not
applicable.

Table 5 – Citizen Participation Outreach

City of Lancaster - 26 - 2026 Annual Action Plan

Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
The Strategic Plan goals included in the City’s Consolidated Plan were based on resources that were reasonably anticipated to be available to the City from federal, state, local and private sources from July 1, 2025, through June 30, 2030. The actual resources available to support activities during the implementation of the Consolidated Plan may vary significantly due to factors outside of the City’s control. For example, HUD formula grant allocations are subject to change each year based on a number of factors such as the amount of the national appropriation, changes in ACS populati on data applied to the CPD grant formulas, statutory changes to the CPD grant formulas, the addition or removal of entitlements receiving a particular CPD grant and the availability of reallocated funds. Additionally, state, local and private resources will vary significantly depending on economic conditions.

At the time of the preparation of the draft document f or public review and consideration by the City Council at their Public Hearing, HUD had not released th e City’s 2026-2027 annual allocations for the CDBG and HOME programs. This Action Plan now reflects the budgets based on the final allocations issued by HUD for the CDBG and HOME Programs. This AAP for PY 2026-2027 (July 1, 2026, through June 30, 2027) is the second year of implementation for the five-year Cons olidated Plan. A number of housing and community development resources are currently available in the City. They include:
• HOME Investment Partnership Program (HOME)
• Community Development Block Grant (CDBG)
• General funds
• HUD Section 8 Rental Assistance Program (through LACDA) On April 28, 2026, the City approved the 2026-2027 AAP allocating $1,506,698 and $609,859.81 in CDBG and HOME funds, respectively, and repurposing $81,000 and $108,691.65 in prior year CDBG and HOME funds, respectively.

City of Lancaster - 27 - 2026 Annual Action Plan

Anticipated Resources
Program Source
of Funds Uses of Funds
Expected Amount Available Year 2 Expected Amount
Available
Remainder of
ConPlan
$
Narrative
Description
Annual
Allocation: $
Program
Income: $
Prior Year
Resources: $
Total:
$
CDBG Public -
Federal
Acquisition
Admin and Planning
Economic Development
Housing
Public Improvements
Public Services
$1,506,698 $0 $81,000 $1,587,698 $4,520,094
The expected
amount available
for the remainder
of the
Consolidated
Plan period
assumes level
funding in future
years.

HOME Public -
Federal
Acquisition
Homebuyer Assistance
Homeowner Rehab
Multifamily Rental New
Construction
Multifamily Rental
Rehab
New Construction for
Ownership
TBRA
$609,859.81 $0 $108,691.65 $718,551.46 $1,829,579.43
The expected
amount available
for the remainder
of the
Consolidated
Plan period
assumes level
funding in future
years.

Table 6 - Expected Resources – Priority Table
City of Lancaster - 28 - 2026 Annual Action Plan

Explain how federal funds will leverage those additi onal resources (private, state and local funds), including a description of how matching requirements will be satisfied The City and HUD share an interest in leveraging HUD resources to the maximum extent feasible to deliver high-quality, creative and efficien t housing programs, neighborhood improvement programs, supportive services and economic development programs. During the 2026-2027 program year, the City will leverage its CDBG and HOME entitlement grants with a variet y of funding resources in order to maximize the effectiveness of available funds. The City and its development partners will continue to seek new opportunities to leverage federal f unds, such as the Low Income Housing Tax Credit (LIHTC) program and other State of California resources including but not limited to:

Federal Resources
• Continuum of Care (CoC) Program
• HUD Veterans Affairs supportive Housing (HUD-VASH)
• Supportive Housing for the Elderly (Section 202)
• Supportive Housing for Persons with Disabilities (Section 811) • Housing Opportunities for Persons with AIDS (HOPWA)
• Youthbuild
• Federal Low-Income Housing Tax Credit Program
• Department of Transportation Grants
• Department of Energy Grants
• Federal Highway Administration
• Emergency Solutions Grant
State Resources
• State Low-Income Housing Tax Credit Program
• Building Equity and Growth in Neighborhoods Program (BEGIN) • Permanent Local Housing Allocation (PLHA)
• CalHome Program
• Multifamily Housing Program (MHP)
• CalHFA Single and Multi-Family Program
• Mental Health Service Act (MHSA) Funding
• Justice Assistance Grant (JAG) Program
• Homeless Emergency Aid Program (HEAP)
• Project Roomkey
Local Resources
• Los Angeles County CoC
• Los Angeles County Development Agency (LACDA)
• Los Angeles Homeless Services Authority (LAHSA)
• Southern California Home Financing Authority (SCHFA)
• General Fund
City of Lancaster - 29 - 2026 Annual Action Plan

Private Resources
• Federal Home Loan Bank Affordable Housing Program (AHP) • Community Reinvestment Act Programs
• United Way
• Private Contributions
In addition, the City is a current recipient of HOME American Rescue Plan (HOME ARP) funds which will go towards funding activities that help facilitate the Ci ty’s recovery from the devasting economic and health effects of the COVID-19 pandemic. The City has alloca ted these funds via a Substantial Amendment to the 2021-2022 AAP.

HOME Matching Requirements
HUD requires HOME recipients (PJs) to match 25 perc ent of their HOME annual allocation. In accordance with 24 CFR 92.222, PJs satisfying the distress criteria established by the HOME Program regulations are provided a match reduction. The match reductions are gr anted due to fiscal distress, severe fiscal distress, and Presidential disaster declarations. For those PJs with both fiscal distress and Presidential disaster match reductions, the PJ may take the higher match reduction for the current fiscal year.

When a local jurisdiction meets one of the distress criteria, it is determined to be in fiscal distress and receives a 50 percent reduction of match. If a local jurisdiction satisfies both distress criteria, it is determined to be in severe fiscal distress and receives a 100 percent redu ction of match. The City has received a 100 percent match reduction from HUD, and therefore, is required to match 0 percent of HOME Funds using non-federal funds.

The City leverages HOME funds with other local and private non-federal resources even though it has received a 100 percent match reduction from the 25 percent matching requirement. Any funds that are used in a HOME activity in excess of the required match will be documented by the City and reported to HUD as part of the CAPER each year.

If appropriate, describe publicly ow ned land or property located within th e jurisdiction that may be used to address the needs identified in the plan
In the early 2000s, the Lancaster Redevelopment Agency acquired numerous properties in the City’s core using low- and moderate-income housing funds. Followi ng the dissolution of re development agencies, the Lancaster Housing Authority assumed responsibility for th ese properties and initiated revitalization efforts, including the demolition of dilapidated structures, si te clearance, and preparation for affordable housing development.

In recent years, the Housing Authority has actively so licited proposals from qualified developers to acquire and develop affordable housing on Housing Authori ty owned land. By the end of the 2025-2026 program year, the Housing Authority will issue additional Requ ests for Proposals (RFPs) for the acquisition and development of approximately 40 acres across multiple Housing Authority-owned sites.

City of Lancaster - 30 - 2026 Annual Action Plan

Additionally, the City has allocate d $2,082,945 in HOME ARP funds toward the construction of affordable housing on one of the Housing Authority’s sites. While this investment is currently designated for a specific project, the City retains flexibility to reallocate HO ME-ARP funds, if necessary, potentially directing them toward land acquisition, rehabilitation, or conversion into affordable rental housing or transitional housing for qualified populations and low-income households.

As of the publication of this document, the City has entered into a Development and Disposition Agreement (DDA) with Bridge Housing Corporation for the City’s Housing Neighborhood Revitalization (HNR-1) property located at the Southwest corner of Avenue I and Sierra Highway. The development anticipates constructing 114 units, of which 113 units will be income restricted. The development is currently going through extensive environmental remediation. Construction is antici pated to commence during the 2026-2027 program year.

The development is the start of many other developments the City will be pursuing to increase the availability of affordable housing throughout the City. Other properties include but are not limited to:
• HNR 3: Located at the northeast corner of Divisi on Street and Avenue I. Developing a vibrant, integrated, walkable, sustainable, mixed-use deve lopment that incorporates architectural and high- quality design elements that complements the surrounding area and will become a community hub and visual landmark on the Eastside of Lancas ter. Housing will feature prominently in the redevelopment effort with apartments flanking a new 5-acre retail development that will support the residential uses. The development is anticipa ted to commence construction in 2026. The development will result in a total of 266 units being constructed. • HNR 4: Located at the west side of Sierra Hi ghway between Avenue H and H-13. A three-phase development featuring compact, for-rent single-family homes with accessory dwelling units. The first and third phases will provide housing for low-inco me families, while the second phase will provide housing for low-income seniors. The development is currently under construction. Upon completion, the development will have constructed a total of 499 total units. • HNR 5: Located on the west side of 10th Street Wes between H-8 and H-11. Habitat for Humanity will construct 27 for-ownership, rowhouses for working families. • HNR 6: Located at the northeast corner of Avenue J-2 and Beech Avenue. The project consisted of a 32-unit apartment complex.
• HNR 7: Located at the southeast corner of Newgrove Street and Beech Avenue. The project consists of an 11,076 sq. ft. 12-unit apartment complex.
• HNR 8: Located along Avenue H-13 between 3rd and 4t h Street East. The project consists of eight (8) single-family homes at 60-80% AMI and is envi sioned for development along with the adjacent HNR 3 for economies of scale.
• HNR 9: Located along the east side of Beech Avenue between Avenue J-6 and J-7. The project consists of a 36-unit apartment complex.

Beyond these planned developments, the City took proactive steps in the 2023-2024 program year by acquiring 108 undersized and undevelopable parcels. The City intends to consolidate these parcels, most of which are within a 1/8-mile radius, approximately half a mile southeast of downtown Lancaster, into 15 larger, developable lots. Once consolidation is complete, the City will issue RFPs to both non-profit and for-profit City of Lancaster - 31 - 2026 Annual Action Plan

developers for projects targeting underserved low-in come populations. These developments may include short-term and long-term transitional housing units.

Discussion
During July 2026 through June 2027, the City will rely on other public and private funding, including but not limited to:
• Low-Income Housing Tax Credits
• Project-based Section 8 certificates
• Project financing at favorable interest rates from local lenders • Private contributions to local CHDOs
• Private market real estate investments
• Market rate housing that subsidizes affordable units on the same development site to enhance the availability, affordability, and sustainability of affordable housing within the community.

Along with leveraged dollars, the City expects to invest approximately $1,587,698 in CDBG funds and $718,551.46 in HOME funds during the program year on public services, housing preservation and development, as well as public facility and infrastruc ture improvement activities that promote suitable living environments and decent housing.

City of Lancaster - 32 - 2026 Annual Action Plan

Annual Goals and Objectives
AP-20 Annual Goals and Objectives
Goals Summary Information
Sort
Order Goal Name Start
Year
End
Year Category Geographic
Area
Needs
Addressed Funding Goal Outcome Indicator
1 Provide Supportive
Human Services 2026 2027
Non-Housing
Community
Development
City Wide
Supportive
Human Services
for Vulnerable
Populations
CDBG:
$307,005
Public Service Activities other than
Low/Mod Income Housing Benefit:
373 Persons Assisted
2 Enhance Public
Facilities &
Infrastructure
2026 2027
Non-Housing
Community
Development
City Wide
Public Facilities
and
Infrastructure
Improvements
CDBG:
$979,354
Public Facility or Infrastructure
Activities other than Low/Mod Income
Housing Benefit:
150,780 Persons Assisted
3 Develop Affordable
Homeowner Housing 2026 2027 Affordable
Housing City Wide
Affordable
Homeowner
Housing
Development
HOME:
$91,479
Homeowner Housing Added:
1 Households Housing Units
4 Expand Homeownership
Opportunities 2026 2027 Affordable
Housing Citywide Homeownership
Opportunities
HOME:
$566,087.46
Direct Financial Assistance to
Homebuyers:
4 Households Assisted

5 Provide Fair Housing
Services 2026 2027 Affordable
Housing Citywide
Ensure Equal
Access to
Housing
Opportunities
CDBG:
$40,000
Public Service Activities other than
Low/Moderate Income Housing
Benefit: 180 Persons Assisted
6 Planning &
Administration 2026 2027 All Citywide All
CDBG:
$261,339
HOME:
$60,985
Other: 2
Table 7 – Goals Summary
City of Lancaster - 33 - 2026 Annual Action Plan

Goal Descriptions
1 Goal Name Provide Supportive Human Services
Goal
Description
Provide low- and moderate- income residents with a range of public services necessary to prevent homelessness and ameliorate the effects of poverty. 2 Goal Name Enhance Public Facilities & Infrastructure
Goal
Description
Improve public facilities and infrastructu re to benefit low- and moderate-income residents or those presumed under HUD regu lations to be low- and moderate-income such as elderly and disabled adults. This includes facilities owned and operated by the City that are open and available to residents as well as facilities owned and operated by non-profit organizations that serve the pu blic during normal business hours. Where possible, improvements will remove material and architectural barriers to accessibility for elderly persons and severely disabled adults.
3 Goal Name Develop Aff ordable Homeowner Housing
Goal
Description
In partnership with housing developers, increase the supply of homeowner housing that is affordable to low-income households, including units for persons with special needs and persons experiencing homelessness.
4 Goal Name Expand Homeownership Opportunities
Goal
Description
Promote homeownership opportunities for low- and moderate-income households through downpayment assistance and housing counseling initiatives. 5 Goal Name Provide Fair Housing Services
Goal
Description
Affirmatively further fair housing choice through the provision of fair housing education, counseling, anti-discrimination and landlord-tenant mediation services. 6 Goal Name Planning and Administration
Goal
Description
Provide for the timely and compliant administration of the CDBG and HOME programs in accordance with HUD policy and federal regulations.

Estimate the number of extremely low-income, low-income, and moderate-income families to whom the jurisdiction will provide affordable housing as defined by HOME 91.315(b)(2) In accordance with the City’s goal to Develo p Affordable Housing and Expand Homeownership Opportunities, the City anticipates serving five (5) extremely low- or low-income households with HOME funds. HOME-assisted units shall meet the requirements of 24 CFR 92.254.

City of Lancaster - 34 - 2026 Annual Action Plan

AP-35 Projects – 91.220(d)
Introduction
During the 2026-2027 program year, th e City will receive $1,506,698 in CDBG funds and $609,859.81 in HOME funds. In addition, the City will repurpos e $81,000 and $108,691.65 in prior year CDBG and HOME dollars, respectively, during the 2026-2027 program year. To address the high priority needs identified in the Strategic Plan to the Consolidated Plan, the City will in vest funds in projects that will increase the supply of affordable housing, preserve affordable housing, promote homeownership of affordable housing, provide fair housing services, provide public services and improve public facilities and infrastructure for low-income residents. Together, these projects will address the housing, community and economic development needs of the City’s residents-particularly those residents residing in the low- and moderate-income areas.

Projects
# Project Name
1 LACC: The Work Program
2 SC: Coffee Manufacturing Employment Program for
Homeless People
3 AVPH: Feed the Need
4 AVFF: Foster Youth Support Services
5 Enhance Public Facilities & Infrastructure
6 Develop Affordable Homeowner Housing
7 Expand Homeownership Opportunities
8 Provide Fair Housing Services
9 Program Administration
Table 8 - Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs Based on the Strategic Plan, the City is allocating 100 percent of its CDBG and HOME funds (excluding program administration) for program year 2026-2027 to projects and activities that benefit low- and moderate-income people. Due to the nature of the projects and activities to be undertaken, investments in all projects concerning Public Facilities and Infrastructure Improvements, Public Service and Affordable Housing activities will be available citywide.

The primary obstacles to meeting the underserved needs of low- and moderate-income people include lack of funding from federal, state and other local sources, th e high cost of housing that is not affordable to low- income people and the lack of availability of home im provement financing in the private lending industry. To address these obstacles, the City is investin g CDBG and HOME funds through the 2026-2027 AAP in projects that develop and preserve affordable housin g, expand essential public services for low- and moderate-income residents, and enhance homeownership opportunities.

City of Lancaster - 35 - 2026 Annual Action Plan

AP-38 Project Summary
Project Summary Information
1 Project Name Lost Angels Career Center (LCC): The Work Program Target Area Citywide
Goals Supported Provide Supportive Human Services
Needs Addressed Supportive Humane Services for Vulnerable Populations Funding CDBG: $109,005
Description Provide low- and moderate- income residents with work training services to prevent homelessness and ameliorate the effects of poverty.

Target Date 06/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
30 Persons Assisted
Location Description Citywide
Planned Activities LACC: The Work Program (30 Persons Assisted) - $109,005

2 Project Name

Lancaster Homeless Group dba Street Company: Coffee
Manufacturing Employment Program for Homeless People
Target Area Citywide
Goals Supported Provide Supportive Human Services
Needs Addressed Supportive Human Services for Vulnerable Populations Funding CDBG: $42,000
Description Provide low- and moderate- income residents with work training services to prevent homelessness and ameliorate the effects of poverty.

Target Date 6/30/27
Estimate the number and
type of families that will
benefit from the proposed
activities
13 Persons Assisted
Location Description Citywide
Planned Activities LHG dba SC: Coffee Manufacturing Employment Program for Homeless People (13 Persons Assisted) - $42,000

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3 Project Name Antelope Valley Partners for Health (AVPH): Feed the Need Target Area Citywide
Goals Supported Provide Supportive Human Services
Needs Addressed Supportive Human Services for Vulnerable Populations Funding CDBG: $75,000
Description Provide low- and moderate- income residents with food to address the effects of poverty.

Target Date 6/30/27

Estimate the number and
type of families that will
benefit from the proposed
activities

80 Persons Assisted
Location Description Citywide

Planned Activities AVHP: Feed the Need (80 Persons Assisted) - $75,000

4 Project Name Antelope Valley Foster Friends (AVFF): Foster Youth Support Services Target Area Citywide
Goals Supported Provide Supportive Human Services
Needs Addressed Supportive Human Services for Vulnerable Populations Funding CDBG: $81,000
Description The program will provide foster youths with ongoing support services, essential resources, and respite opportunities designed to promote placement stability and overall well-being.

Target Date 06/30/2027

Estimate the number and
type of families that will
benefit from the proposed
activities

250 Persons Assisted
Location Description Citywide

Planned Activities AVFF: Foster Youth Support Services (250 Persons Assisted) - $81,000

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5 Project Name Enhance Public Facilities & Infrastructure Target Area Citywide
Goals Supported Enhance Public Facilities & Infrastructure Needs Addressed Public Facilities and Infrastructure Improvements Funding CDBG: $979,354
Description The project will fund the re-roof system replacement at the Stanely Kleiner Building located in Sergeant Owen Memorial Park.

Target Date 06/30/27

Estimate the number and
type of families that will
benefit from the proposed
activities

150,780 Persons Assisted

Location Description Citywide

Planned Activities City of Lancaster: Sergeant Owen Memorial Park Stanley Kleiner Building Re-Roof Improvement P roject (150,780 Persons Assisted) - $979,354

6 Project Name Develop Affordable Homeowner Housing
Target Area Citywide
Goals Supported Develop Affordable Homeowner Housing
Needs Addressed Affordable Homeowner Housing Development Funding HOME: $91,479
Description The City CHDO set-aside.

Target Date 6/30/27

Estimate the number and
type of families that will
benefit from the proposed
activities

1 Household/Housing Unit

Location Description Citywide

Planned Activities The City of Lancaster: CHDO Set-Aside (1 Household/Housing Unit) - $91,479

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7 Project Name Expand Homeownership Opportunities
Target Area Citywide
Goals Supported Expand Homeownership Opportunities
Needs Addressed Homeownership Opportunities
Funding HOME: $566,087.46
Description

Provide downpayment assistance qualified households to lower the cost of acquisition and promote homeownership. This project is run by the City of Lancaster.

Target Date

6/30/27

Estimate the number and
type of families that will
benefit from the proposed
activities

4 Households Assisted

Location Description

Citywide
Planned Activities

City of Lancaster: FTHB Program (4 Households Assisted) - $566,087.46
8 Project Name Provide Fair Housing Services
Target Area Citywide
Goals Supported Provide Fair Housing Services
Needs Addressed Ensure Equal Access to Housing Opportunities Funding CDBG: $40,000
Description

Affirmatively further fair housing choice through the provision of fair housing education, counseling, anti-discrimination and landlord-tenant mediation services.

Target Date 6/30/27
Estimate the number and
type of families that will
benefit from the proposed
activities

180 Persons Assisted
Location Description

Citywide
Planned Activities Fair Housing Foundation: Fair Housing Services (180 Persons) - $40,000

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9 Project Name

Program Administration
Target Area

Citywide
Goals Supported

All
Needs Addressed

All
Funding

CDBG: $261,339
HOME: $60,985
Description

Overall administration of the CDBG and HOME program which includes preparation and submission of the Annual Action Plan and CAPER, IDIS data input, provision of technical a ssistance, monitoring of all projects, and fiscal management.

Target Date

6/30/27

Estimate the number and
type of families that will
benefit from the proposed
activities

Other - 2

Location Description Citywide
Planned Activities

City of Lancaster: CDBG Administration - $261,339
City of Lancaster: HOME Administration - $60,985

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AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed
Based on the Strategic Plan, the City is allocating 100 percent of its CDBG and HOME funds (excluding program administration) for program year 2026-2027 toward projects and activities that benefit low- and moderate-income clientele and are available citywide.

The low- and moderate-income census tract/block groups are shown on the map included in Appendix B.

Geographic Distribution
Target Area Percentage of Funds
Citywide 100%
Table 9 - Geographic Distribution
Rationale for the priorities for allocating investments geographically For the 2026-2027 program year, the City will invest $1,587,698 in CDBG funds and $718,551.46 in HOME funds that will benefit low- and moderate-income residents throughout the City.

Discussion
The City is allocating 100 percent of its non-administrative CDBG and HOME funds for program year 2026- 2027 to activities that benefit low- and moderate-income residents throughout the City.

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Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
Two (2) high priority affordable housing needs are identified in the 2025-2029 Consolidated Plan and two (2) Strategic Plan goals are established to provide the fr amework necessary to invest HOME funds to address the affordable housing needs of the City. During the 2026-2027 program year, the City will implement the following affordable housing activities:
• Homeowner Housing Development - $91,479 in HOME funds (1 Household/Housing Unit) • Homebuyer Assistance Program: $566,087.46 in HOME funds (4 Households) One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 5
Special-Needs 0
Total 5
Table 10 – One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance 0
The Production of New Units 1
Rehab of Existing Units 0
Acquisition of Existing Units 4
Total 5
Table 11 – One Year Goals for Affordable Housing by Support Type Discussion
During the 2026-2027 program year, the City intends to partner with a Community Development Housing Organization (CHDO) and invest $91,479 in HOME f unds toward developing affordable homeownership housing. In addition, the City also plans to a llocate $566,087.46 of HOME funds to provide financial assistance to income-eligible households to purchase a home.

In addition, the City has determined that over the next 10 years (2021‐2031), nine (9) assisted developments that provide 661 affordable, multi‐family units have expiring affordability covenants. The City’s objective is to either retain or replace them as low‐income housing all at risk units in the city. The community development department will implement the following programs on an ongoing basis to conserve its affordable housing stock:

City of Lancaster - 42 - 2026 Annual Action Plan

• Maintain an inventory of affordable housing units citywide, with unit affordability information to ensure landlords are compliant with deed restrictions.
• Continue to monitor the status of subsidized affordable projects, rental projects, and mobile homes, when possible, to ensure long‐term affordability.
• As needed, support funding applications to preserve at‐risk units. • Establish contact with public and nonprofit agencies interested in purchasing and/or managing units at‐risk to inform them of the status of such projects. Where feasible, provide technical assistance and support to these organizations with respect to financing. • Work with tenants of at ‐risk units and provide them with ed ucation regarding tenant rights and conversion procedures. Provide tenants in at ‐risk projects information regarding Housing Choice Voucher rent subsidies.

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AP-60 Public Housing – 91.220(h)
Introduction
The Los Angeles County Development Authority (LACDA) plays a vital role in addressing the affordable housing needs of residents throughout the City.

Actions planned during the next year to address the needs to public housing LACDA manages five affordable housing sites throughout the County, one of which is Lancaster Homes. In addition, LACDA administers the Housing Choice Voucher (HCV) program which ensures low-income families have access to stable and affordable housing.

Actions to encourage public housing residents to become more involved in management and participate in homeownership
LACDA encourages residents to be ac tively involved in the community and in the management of public housing developments through resident councils an d numerous opportunities for feedback such as community meetings and surveys. LACDA encourages qua lified public housing participants to pursue self- sufficiency and homeownership. In the Family Self-Su fficiency program staff works with participants to establish a five-year plan to become independent of government assistance. As family income increases the amount of rent they are responsible for those as well. The incremental increase in rent is put into an escrow account which becomes available to the family upon co mpletion of the program or for eligible expenses during the term of the program.

If the PHA is designated as troubled, describe the mann er in which financial assistance will be provided or other assistance
Not applicable. LACDA is considered a High Performing PHA.

Discussion
The City continues to support LACDA in effective admini stration of its limited affordable housing resources.

The City also continues to work with the agency to include the residents with Housing Choice Vouchers in the federally funded programs administered by LACDA . Moving forward, priori tizing resident-focused improvements and securing additional resources w ill ensure that public housing continues to be a cornerstone of the City’s affordable housing strategy.

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AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
Preventing and reducing homelessness is a top priori ty for HUD that is addressed nationally through coordination of regional strategies carried out locally by government agencies and a wide variety of community-based organizations and faith-based groups. Consistent with this approach, the City supports the efforts of the CoC and its member organizations that address homelessness throughout the region. In alignment with this strategy, the City will use CD BG, HOME, and other funds to support local service providers as well as City run programs to prevent homelessness and to expand the supply of affordable housing in Lancaster for extremely low- and low-income residents.

Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including reaching out to homeless persons (esp ecially unsheltered persons) and assessing their individual needs
The City works closely with local nonprofits and regional service providers to ensure that homeless individuals have access to housing assistance, supportive servic es, and case management. The City will continue working with its partners to expand housing-firs t programs, increase emergency shelter capacity, and strengthen outreach initiatives to connect individuals with available support services.

During the 2026-2027 program year, the City will invest $226,005 of CDBG funds to the following activities that prevent and reduce homelessness:
• LACC: The Work Program (30 persons assisted)
• SC: Coffee Manufacturing Employment Program for Homeless People (13 persons assisted) • AVHP: Feed the Need (80 persons assisted)
Addressing the emergency shelter and transitional housing needs of homeless persons The ultimate solution to ending homelessness is tran sitional to permanent housing closely aligned with supportive services that ensure housing stability can be maintained. However, one of the most pressing challenges is the lack of emergency and transitional housing options. The existing shelter system does not have enough capacity to serve all individuals in need, particularly families with children and unaccompanied youth. Limited funding for public services also rest ricts the City's ability to expand supportive housing programs and case management services. To address these gaps, the City is seeking additional funding sources, strengthening partnerships with the private sector, and exploring innovative housing solutions.

Additionally, to address the needs of homeless person s in the near-term, the Ci ty supports Lost Angels Career Center and Street Company which provides employment training services with the goal of helping 43 people becoming self-sufficient and enter their own permanent housing.

City of Lancaster - 45 - 2026 Annual Action Plan

Helping homeless persons (especially chronically ho meless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and fam ilies who were recently homeless from becoming homeless again
To address the needs of homeless families, families with children, veterans and their families, the City will support Lost Angels Career Center and Street Compan y which provide employment training services with the goal of helping families become self-sufficient and achieve financial stability. Furthermore, the City intends to support the Antelope Valley Partners for Health F eed the Need Program which helps families that are at- risk of homelessness achieve stability by providing access to food to help offset cost of living expenses.

Additionally, the City’s partnership with the Los Angeles Continuum of Care (CoC) and its member organizations provides intensive, field-based engagement services that meet clients and their families where they live. As a result, the City has been able to leverage its partnerships with the CoC agencies to bolster its homeless outreach efforts.

Helping low-income individuals and families avoi d becoming homeless, especially extremely low- income individuals and families and those who ar e: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs
To help low-income individuals and families avoid becomi ng homeless, the City will continue its partnership with Antelope Valley Partners for Health to connect resi dents at risk of becoming homeless to food to help offset cost of living expenses. In addition, the City in tends to support Lost Angels Career Center and Street Company which provide employment training services with the goal of helping families become self-sufficient and avoid becoming homeless.

The City coordinated with the CoC and other subrecip ients receiving CDBG funds to ensure that its HUD- funded programs are targeted, to the greatest extent feasible, to address the discharge of persons from publicly funded institutions or systems of care so that these individuals and families have access to public services and affordable housing opportunities necessa ry to prevent homelessness. The City will coordinate with local hospitals regarding Senate Bill No. 1152 which requires each hospital to have a written discharge planning policy and process that requires that the appropriate arrangements for post hospital care are made prior to discharge for those patients likely to suffer ad verse health consequences upon discharge if there is no adequate discharge planning. The bill would require a hospital to document specified information before discharging a homeless patient. The bill would require a hospital to develop a wr itten plan for coordinating services and referrals for homeless patients with the county behavioral health agency, health care and social service agencies in the region, health care providers, and nonprofit social service providers, as available, to City of Lancaster - 46 - 2026 Annual Action Plan

assist with ensuring appropriate homeless patient discharge. The bill would also require a hospital to maintain a log of homeless patients discharged and the destinations to which they were released after discharge. The bill would specify how its provisions are to be construe d in relation to local ordinances, codes, regulations, or orders related to the homeless patient discharge processes, and would exempt state hospitals under the jurisdiction of the State Department of State Hospitals from its provis ions. Because a violation of these requirements would be a crime, this bill would impose a state-mandated local program.

Discussion
The City will use CDBG, HOME, and other funds to su pport local service providers as well as City run programs to prevent homelessness and to expand the supply of affordable housing in Lancaster for extremely low- and low-income residents.

City of Lancaster - 47 - 2026 Annual Action Plan

AP-75 Barriers to Affordable Housing
Introduction
A barrier to affordable housing is a public policy or regulation that constrains the development and preservation of affordable housing such as tax policy, land use controls, zoning ordinances, building codes, growth limits, environmental protection, and fees. Ba rriers to affordable housing are distinguished from impediments to fair housing choice in the sense that barriers are lawful and im pediments to fair housing choice are usually unlawful.

Based on information gathered and resident feedback, the primary barriers to affordable housing in Lancaster are housing affordability and the lack of monetary re sources necessary to develo p and sustain affordable housing. The two (2) barriers are related in the sense that demand for affordable housing exceeds the supply, and insufficient resources are available to increase the supply of affordable housing to meet demand.

To address housing affordability and the lack of mone tary resources for affordable housing, the 2026-2027 Action Plan calls for the investment of a significan t portion of HOME funds to develop 1 new affordable housing unit and provide homeownership assistance to four (4) low-income households.

Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment Addressing misconceptions through community education is critical to gaining public support for affordable housing initiatives. The availability of developable land is constrained by high acquisition costs and the need for infrastructure improvements. Investment in land assemblage, demolition, and site preparation is necessary to create shovel-ready sites for affordable housing projects.

Despite zoning incentives, market conditions make it challenging to attract developers to affordable housing projects. Additional financial incentives are needed to encourage private sector investment. A collaborative approach between the City, County, and regional partners could expand resources and enhance the feasibility and impact of affordable housing initiatives.

The City will incorporate the following actions to remove barriers to affordable housing:
• The City continues to follow the Housing Element of the General Plan. • Provide timely review of discretionary and non-di scretionary residential development requests, with fees sufficiently only to cover the actual costs (direct and overhead) incurred by the City. • Periodically, evaluate land development processing procedures to ensure that project review is accomplished in the minimum time necessary to implement the General Plan and ensure protection of public health, safety, and welfare.
• As part of the regular proceedings of the Deve lopment Review Committee (DRC), make residential developers aware of City zoning ordinance provisions that provide up to a 35 percent density bonus, or equivalent financial incentive, to residentia l developers who agree to make a corresponding City of Lancaster - 48 - 2026 Annual Action Plan

percentage of the units within the project affordable to households, per State density bonus law. The City’s zoning ordinance will be revised to reflect the latest changes in density bonus law. • Leverage direct funding resources of the LHA with State and Federal funding sources to address the City’s objectives contained in Table H-1 “Quantified Objectives” of the Housing Element in order to facilitate the provision of single and multiple fami ly dwelling units available to very low, low, and moderate-income households.
• Encourage private sector development of affordable housing by subsidizing development impact fees in exchange for long term affordable restrictions.
• Identify and acquire distressed re sidential projects (e.g., foreclos ures, bankruptcies) and prepare them for sale or rent at affordable housing costs.
• Periodically review the General Plan and zoning ma p to ensure that locations for affordable housing are encouraged in areas throughout the City, including locations within reasonable proximity to public facilities, transportation, schools, parks, and other daily services. • Implement the following strategies to provide hous ing opportunities specifically for extremely low- income households:
o Assist developers in seeking specialized funding sources for extremely low-income housing units; o Identify and recruit developers (for-profit and non-profit) for the development of extremely low- income housing units;
o Re-evaluate the city’s development review process for higher density, mixed use, second dwelling unit, and other supportive housing to ensure development feasibility; and, o Encourage other alternative housing options, including SRO (single room occupancy) housing units to meet the needs of varying living situations.

Discussion
To address housing affordability and the lack of mone tary resources for affordable housing, the City will continue to leverage its CDBG and HOME funds to attract private and other available resources to incentivize the development of new affordable housing units and the preservation of existing affordable housing.

In addition, the City’s First-Time Homebuyer (FTHB) program will provide financial assistance to income- eligible households to purchase a house. Lastly, the Housing Development project will expand the supply of affordable housing for low- and moderate-income residents.

City of Lancaster - 49 - 2026 Annual Action Plan

AP-85 Other Actions – 91.220(k)
Introduction
In the implementation of the 2026-2027 AAP, the City will invest CDBG and HOME resources to address obstacles to meeting underserved needs, foster and ma intain affordable housing, reduce lead-based paint hazards, reduce the number of poverty-level fam ilies, develop institutiona l structure, and enhance coordination between public and private housing and social service agencies.

Actions planned to address obstacles to meeting underserved needs The primary obstacles to meeting the underserved needs of low- and moderate-income people include lack of funding from federal, state and other local sources, th e high cost of housing that is not affordable to low- income households, and the lack of home improvement financing in the private lending industry. To address these obstacles, the City is investing CDBG and HO ME funds through the 2026-2027 AAP in activities that provide public services to low- and moderate-income residents and those that are homeless. Additionally, Lancaster will support its financial assistance program that will enable eligible homeowners to purchase a home. Lastly, the City will finance the development of new housing units that are affordable to low- and moderate-income residents.

Actions planned to foster and maintain affordable housing During the 2026-2027 program year, the City will invest HOME funds to provide financial assistance to low- and moderate-income homeowners. In addition, Lancaster will allocate HOME funds to develop housing units that are affordable to low- and moderate-income hous eholds. Lastly, the City’s FTHB program furthers the aim of promoting homeownership opportunities by financially assisting low- and moderate-income residents with downpayment assistance and counseling.

Actions planned to reduce lead-based paint hazards
The Residential Lead Based Paint Hazard Reduction Act of 1992 (Title X) emphasizes prevention of childhood lead poisoning through housing-based approaches. To reduce lead-based paint hazards, the City’s Housing Rehabilitation Program (funded in prior AAPs) and FT HBP will conduct lead-based paint testing and risk assessments for each property assisted that was built prior to January 1, 1978 and will incorporate safe work practices or abatement into the scope of work as required to reduce lead-based paint hazards in accordance with 24 CFR Part 35.

The number of units considered to contain lead-based paint is relatively low. Having the information available to warn people about the need to maintain buildings, which may contain LBP, as well as other programs to encourage home maintenance, helps to aid in mitigating LBP hazards in the City.

The City will also encourage landowners to correct substandard conditions to minimize LBP hazards, especially owners of units where children ages six (6 ) and under live. Due to the average age of the City's housing, homes containing lead-based paint are not believed to be a significant problem. However, the City will continue to evaluate and reduce lead-based paint hazards through the following actions and activities:

City of Lancaster - 50 - 2026 Annual Action Plan

• Providing information to purchasers, owners, landl ords, renters, and various property management agencies regarding the dangers of lead-based paint and appropriate mitigation strategies, as part of the City's FTHBP, Housing Rehabilitation Progra m (funded in prior year AAPs), and fair housing contract.
• Providing written information through one-on-one contact with contractors, building inspectors, code enforcement officers, and the general public.

Funding will not be provided until it is determined properties are free of LBP hazards.

Actions planned to reduce the number of poverty-level families The implementation of CDBG and HOME activities meeting the goals established in this AAP will help to reduce the number of poverty-level families by:
• Supporting activities that increase the supply of ho using that is affordable to low- and moderate- income households;
• Providing a continuum of housing and public servic e programs to address the needs of low-income families as well as prevent and reduce homelessness; and • Improving public facilities and infrastructure to benefit low- and moderate-income residents or those presumed under HUD regulations to be low- and moderate-income such as the elderly and disabled adults
In addition to these local efforts, mainstream state and federal resources also contribute to reducing the number of individuals and families in poverty. Federal programs such as the Earned Income Tax Credit and Head Start provide pathways out of poverty for families who are ready to pursue employment and educational opportunities. Additionally, in California, the primary programs that assist families in poverty are CalWORKs, CalFresh (formerly food stamps) and Medi-Cal. Togeth er, these programs provide individuals and families with employment assistance, subsidie s for food, medical care, childcare and cash payments to meet basic needs such as housing, nutrition and transportation.

Actions planned to develop institutional structure
Lancaster’s institutional delivery system is highly collaborative, well-struct ured, and equipped with experienced public and private sector partners. One of the key strengths of the system is the diverse network of service providers capable of leveraging CDBG and HOME funds to address affordable housing, public services, and community development needs. To enha nce the effectiveness of the institutional delivery system and address service gaps, the City will collaborate with affordable housing developers and nonprofit agencies receiving CDBG and HOME funds through the 2026-2027 AAP to ensure that the needs of low- and moderate-income residents are met as envisioned within the 2025-2029 Consolidated Plan.

City of Lancaster - 51 - 2026 Annual Action Plan

Actions planned to enhance coordination between public and private housing and social service agencies To enhance coordination between public and private housing and social service agencies, the City will continue consulting with and inviting the participation of a wide variety of agencies and organizations involved in the delivery of housing and supportive services to low- and moderate-income residents in Lancaster. With improvements in technology, the City will expand its outreach efforts to enhance coordination with public and private housing and social service agencies through social media pl atforms such Facebook, Twitter, Instagram, etc.

Discussion
In the implementation of the 2026-2027 AAP, the City will invest CDBG and HOME resources to address obstacles to meeting underserved needs, foster and ma intain affordable housing, reduce lead-based paint hazards, reduce the number of poverty-level fam ilies, develop institutiona l structure, and enhance coordination between public and private housing and social service agencies.

City of Lancaster - 52 - 2026 Annual Action Plan

Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction
Throughout the implementation of activities under the 2026-2027 AAP, the City will follow all HUD regulations concerning the use of program income, forms of inve stment, overall low- and moderate-income benefit for the CDBG program, and recapture requirements for the HOME program.

Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be av ailable during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed. $0

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. $0

3. The amount of surplus funds from urban renewal settlements. $0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan. $0

5. The amount of income from float-funded activities. $0 Total Program Income: $0
Other CDBG Requirements

1. The amount of urgent need activities $0

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overa ll Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall bene f i t of 7 0 % of C D B G f un d s i s u s ed t o b en ef i t persons of low and moderate income. Specify the years covered that include this APP. The City will meet this requirement over the 2025-2026, 2026-2027 and 2027-2028 CDBG program years. 70%

City of Lancaster - 53 - 2026 Annual Action Plan

HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(l)(2)

1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows:

The City will not use any other forms of investment beyond those identified in Section 92.205.

2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows:

During the 2026-2027 program year, the City will implement homebuyer activities which will incorporate recapture provisions into written agreements and long-term affordability covenants as required by 24 CFR 92.254.

The recapture provision ensures that all or a portio n of the City’s HOME assistance to homebuyers or homeowners is recaptured if the housing does not continue to be the principal residence of the family for the duration of the applicable period of affordability. In establishing this provision, the City is subject to the limitation that when the recapture requirement is triggered by a sale (voluntary or involuntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the HOME investments due, the City can only recapture a portion of the net proceeds, if any. The net proceeds are the sales price minus superior loan repayment (other than HOME funds), capital improvements, and any closing costs.

In the event of a mortgage default, the City has the right of first refusal before foreclosure and may use additional HOME funds to acquire the housing in order to preserve the housing’s affordability. However, notwithstanding a foreclosure situat ion, the City intends to recaptur e all or some of its HOME funds invested during or at the end of the established af fordability period, if practicable. Recaptured HOME funds consist of loan payments (including interest) and/or a loan payoff, upon sale, if the assisted owner is no longer residing in the assisted residence, or for any other breaches of the agreement with the City.

Recaptured funds may be used for any HOME eligible activity.

These recaptured funds are identified in the City’s accounting system by a unique recaptured revenue object number. Any recaptured funds will be used by the City before any additional HOME funds.

3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows:

Periods of affordability. The HOME-assisted housing must meet the affordability requirements for not less than the applicable period specified in the following table, beginning after project completion. The per unit amount of HOME funds and the affordability period that they trigger are described in the table below:

Amount of HOME Assistance Minimum Period of Affordability Under $15,000 5 years
$15,000 to $40,000 10 years
Over $40,000 15 years
City of Lancaster - 54 - 2026 Annual Action Plan

Recapture

During the affordability period, if there is a property sale, transfer, or program default of the conditions of the promissory note or the Affordable Housing Restriction, the City will provide for the recapture of HOME funds in accordance with the following:

A. Upon the occurrence of a sale, transfer, or progra m default of the conditions of the promissory note or the Affordable Housing Restriction, the entire am ount of the HOME Assistance provided by the City will be due to the City.

B. Notwithstanding the preceding, in the event that the Net Proceed s resulting from a sale are not sufficient to provide for the full return of the borrower’s investment inclusive of the original down payment and capital improvements performed on the acquired property (subject to City verification and approval), then the borrower shall be entitled to recover th eir original down paymen t amount and City-approved capital improvement amounts before the City recapture of the HOME investment amount (the City HOME Assistance). For the purposes of this calculation, net proceeds shall mean the sales price minus the repayment of the Primary Loan undertaken to acquir e the Property (other than HOME funds) and any closing costs. Capital improvements means those improvements legally made by Homeowner to the Property after the closing of Homeowner’s purchase of the Property, with a minimum cost of Two Thousand Five Hundred Dollars ($2,500) per item, and a useful remaining economic life of not less than five (5) years, as approved by the City and documented by invoices and receipts which the Homeowner certifies to be true and correct. In the event the ne t proceeds are not sufficient to repay the full amount of the HOME assistance plus enable the Qualified Homebuyer to recover their initial investment in the home and documented costs of any Capital Improvements, the Qualified Homebuyer shall share the Net Proceeds with the City. For the purpose of this provis ion, the “initial investment in the home” shall mean the Qualified Homebuyer’s down payment. Share of Net Proceeds shall be calculated as set forth in the following mathematical formulas: 24 CFR 92.254(a)(5)(ii)(A)(3)

The affordability period will be evidenced by a promissory note, secured by a deed of trust or mortgage, which provides the affordability period and details the formula under which the HOME funds will be recaptured by the City.

The affordability period and recapture requirements w ill be evidenced by a deed restriction or covenant indicating the affordability period and restricting future sales.

City of Lancaster - 55 - 2026 Annual Action Plan

4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows:

The City does not intend to use HOME funds under the 2026-2027 AAP to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds.

5. If applicable to a planned HOME TBRA activity, a description of the preference for persons with special needs or disabilities. (See 24 CFR 92.209(c)(2)(i) and CFR 91.220(l)(2)(vii).

The City does not intend to utilize HOME funds to implement a TBRA program.

6. If applicable to a planned HOME TBRA activity, a description of how the preference for a specific category of individuals with disabilities (e.g. persons with HIV/AIDS or chronic mental illness) will narrow the gap in benefits and the preference is needed to narrow the gap in benefits and services received by such persons. (See 24 CFR 92.209(c)(2)(ii) and 91.220(l)(2)(vii).

The City does not intend to utilize HOME funds to implement a TBRA program.

7. If applicable, a description of any preference or limitation for rental housing projects. (See 24 CFR

92.253(d)(3) and CFR 91.220(l)(2)(vii). Note: Preferences cannot be administered in a manner that limits the opportunities of persons on any basis prohibited by the laws listed under 24 CFR 5.105(a).

The City does not intend to utilize HOME funds for rental housing projects.

Lancaster City CouncilApril 28, 2026

Lancaster City Council
April 28, 2026