STAFF REPORT
City of Lancaster
PH 2
8/11/2026
TN
Date:August 11, 2026
To: Mayor Parris and City Council Members
From:George N. Harris II, Deputy City Manager/Treasurer Subject:Substantial Amendment to the City’s 2026-2027 Annual Action Plan (AAP) Recommendation:
a. Conduct a public hearing and upon accepting public testimony; b.Approve the Substantial Amendment to the 2026-2027 Annual Action Plan (AAP) to allow for the repurposing of $896,419 in Community Development Block Grant (CDBG) funds from the Sergeant Steve Owen Memorial Park Stanley Kleiner Building Re-Roof Improvement Project to the City-Wide Facilities Re-Roof and HVAC Improvement Project; and
c.Authorize the City Manager, or designee, to execute and transmit all necessary documents to the U.S. Department of Housing and Urban Development (HUD), including the Substantial Amendment to the AAP to ensure the City’s timely expenditure of HUD funds G.C. Section 84308: No
Fiscal Impact:
There will be no impact to the City’s General Fund. All proposed dollars impacted by the Substantial Amendment to the AAP have previously been awarded to the City and budgeted to activities in the previously adopted AAP.
The repurposing of the CDBG funds to the City-Wide Facilities Re-Roof and HVAC Improvement Project will ensure that the City’s program funds are utilized to improve the quality of life for the City’s residents by completing necessary roof and HVAC improvements at various facilities throughout the City, including but not limited to, the Sergeant Steve Owen Memorial Park Stanley Kleiner Building.
Background:
HUD requires all entitlement communities receiving CDBG funds, such as the City, to prepare and submit a Consolidated Plan every five (5) years to establish a unified, strategic vision for 2 4
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economic development, housing and community development actions. The Consolidated Plan encompasses the analysis of local community needs and coordinates appropriate responses to those needs and priorities.
The Consolidated Plan is carried out through five (5) AAPs which provide a concise summary of the actions, activities, and the resources that will be used each year to address the priority needs and specific goals identified in the Consolidated Plan. The City must submit an AAP to HUD each year of the five-year Consolidated Plan period. The City Council adopted and submitted the AAP to HUD by the required deadline dates of each year.
After a thorough review of existing activities, proposed goals, and consultation with HUD representatives, the City identified the need to Substantially Amend its AAP by allocating funds to activities that will provide decent, safe and affordable housing, a suitable living environment, and expand on economic opportunities principally for persons of low- and moderate-income throughout the City.
Per the City’s Citizen Participation Plan (CPP), a Substantial Amendment to a Consolidated Plan and AAP is required when a “substantial” change is proposed as it relates to funding priorities, proposed activities, goals, and objectives. This substantial amendment to the AAP is necessary because the City is proposing to repurpose CDBG funds to one (1) new project in the 2026-27 AAP.
Pursuant to 24 CFR 91.505(a), a Substantial Amend requires specific citizen participation actions, including a Public Hearing and 30-day public review period, before the changes may be approved by the City Council and submitted to HUD. The Public Hearing Notice concerning the proposed Substantial Amendment to the AAP was published in the Antelope Valley Press on July 9, 2026.
The Substantial Amendment was made available on the City’s website, Finance & Technology Information Department and City Clerk’s Office for a 30-day public review period starting on July 10, 2026, and ending on August 11, 2026. The City will conduct a public hearing for the substantial amendment as part of the August 11, 2026, City Council meeting.
Staff recommend amending the AAP noted in the enclosed Substantial Amendment. The proposed project is consistent with the Consolidated Plan goals and will provide immediate assistance to the community.
Analysis:
The following narrative provides descriptions and other information for the proposed AAP activity.
New Activity
City-Wide Facilities Re-Roof and HVAC Improvement Project The project will provide much needed re-roof and HVAC improvements at various facilities throughout the City, including but not limited to the Sergeant Steve Owen Memorial Park Stanley Kleiner Building. To comply with CDBG regulations, each facility location included in this project will be reported separately within HUD’s Integrated Disbursement and Information System (IDIS) to ensure each location’s compliance with the national objective requirements of the CDBG program.
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Table 1: Proposed Activity Budget Modifications and Reprogrammed Activity Budgets Program Year/ Activity Title Existing
Budget New Budget Difference
CDBG Program
26/27 City-Wide Facilities Re-Roof and
HVAC Improvement Project $0 $896,419 $896,419
26/27 Sergeant Steve Owen Memorial Park
Stanley Kleiner Building Re-Roof
Improvement Project
$896,419 $0 -$896,419
Sub-Total $896,419 $896,419 $0
Alternatives:
1. Provide alternative direction to staff.
Attachment:
1. Substantial Amendment to the 2026-2027 AAP