Lancaster council adopts CDBG/HOME action plan with updated HUD estimates

The Lancaster City Council approved the city’s annual action plan for Community Development Block Grant (CDBG) and HOME funding for program year 2026–27 after a staff presentation and public hearing.

Cindy Valdivia, the city’s CDBG and Lancaster Energy analyst, told the council the city has received CDBG funding since 1986 and HOME funding since 2020. Staff proposed initial funding levels of $1,590,000 for CDBG and $718,000 for HOME but said HUD provided updated estimates after the public notice: $1,379,000 for CDBG and $548,000 for HOME. Valdivia cautioned the final amounts could still change and said staff would adjust activity funding according to the methodology in the action plan once allocations are finalized within the next 90 days.

Valdivia recommended the council (1) approve and adopt the annual action plan and a substantial amendment to submit to HUD, (2) approve the funding-adjustment methodology, and (3) authorize the city manager or designee to execute related agreements. The council moved to approve PH2 as presented. Council Member Rocio Castellanos disclosed she serves on the board of one grantee (Antelope Valley Partners for Health), recused herself from the item, and left the dais while the remaining council members voted to adopt the plan.

Staff said there is no negative impact to the city general fund from the recommended CDBG/HOME use. Final allocation changes, if any, will be applied to activities consistent with HUD rules and the city’s adopted methodology.

The council adopted the action plan and authorized the city manager to sign related agreements; staff will return with any adjustments after final HUD allocations are confirmed.