STAFF REPORT
City of Lancaster
PH3
9/8/2026
TN
Date:September 8, 2026
To: Mayor Parris and City Council Members
From:George N. Harris II, Deputy City Manager/Treasurer Subject:Substantial Amendment to the City’s 2017-2018 Annual Action Plan Recommendations:
a. Conduct a public hearing and upon accepting public testimony; b. Approve the Substantial Amendment to the 2017-2018 Annual Action Plan (AAP) to allow for the change in end use of the Lancaster Master Plan Community Development (MPCD) Ave J/15 th St West Tentative & Final Maps, utilizing Community Development Block Grant (CDBG) funds, from the development of affordable housing to the development of a public facility; 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 Annual Action Plan.
G.C. Section 84308: No
Fiscal Impact:
There will be no impact to the City’s General Fund. The proposed change in end use for the activity will not have a financial impact. All proposed dollars impacted by the Substantial Amendment to the Action Plan have previously been awarded to the City and budgeted in previously adopted Action Plans and Substantial Amendments.
The City has previously drawn and received CDBG funds for costs associated with the preparation of the tentative tract and final maps at the property located at Avenue J and 15th Street West in the City of Lancaster. The change in end use for the activity will ensure that the City’s CDBG funds are utilized to improve the quality of life for the City’s residents. The City Council’s approval of the recommended action adopts the Substantial Amendment to the AAP thereby approving the change in end use from affordable housing to the construction of a new public facility. 2 5
2 8
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 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 date for the 2017-2018 PY.
After a thorough review of existing activities, proposed goals, and consultation with HUD representatives, the City identified the need to Substantially Amend its AAP. 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 change the end use of an existing activity from the 2017-2018 PY from the development of affordable housing to the construction of a new public facility to service the residents within eligible Census Tracts/Block Groups. Although the proposed change in end use will have no financial impact, the proposed change will require the City to change the activity’s national objective from Low/Mod Housing (LMH) to Low-and Moderate-Income Area Benefit (LMA) and the activity’s CDBG Matrix Code from 12-Construction of Housing to 03 – Public Facilities and Improvements.
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 August 6, 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 August 7, 2026, and ending on September 8, 2026.
Staff recommend amending the AAP noted in the enclosed Substantial Amendment. The proposed change is consistent with the corresponding 2015-2019 Consolidated Plan goals and will address a high-priority need for the community.
Analysis:
The following narrative provides the updated activity description and other information for the proposed AAP activity.
Activity
Lancaster MPCD Ave J/15th St West Tentative & Final Maps 2 5
2 8
To cover cost associated with the preparation of the tentative tract and final maps necessary to develop land for the future construction of a public facility to service the immediate residents within the eligible Census Tract/Block Groups:
900501.1, 900501.2, and 900501.3
900504.1
900607.1
900701.1, 900701.2, 900701.3, and 900701.4
900703.1, 900703.2, and 900703.3
900704.1 and 900704.2
900705.2 and 900705.3
900805.1, 900805.2, and 900805.3
900806.1 and 900806.2
901008.1 and 901008.2
901009.1, 901009.2, and 901009.3
901011.1
Proposed Activity Budget Modifications
The City has drawn and received CDBG funds under this activity. For this reason, the proposed change in end use will not have a financial impact on the activity.
Alternatives:
1. Provide alternative direction to staff.
Attachment:
1. Substantial Amendment to the 2017-2018 AAP