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Council approves reprogramming of federal HOME and NSP funds to Lancaster first‑time homebuyer program

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Summary

Council approved a substantial amendment reallocating $745,009.04 in HOME funds and $868,398.81 from NSP3 into the city's first‑time homebuyer program; staff said no new funds were requested and there is no general‑fund impact.

The Lancaster City Council approved a substantial amendment to several federal action plans to reallocate previously awarded funds to the city’s first‑time homebuyer program.

Cindy Valdivia, the city’s CDBG funds analyst, presented the amendment and told the council that no new funds were being requested. “We are reallocating previously awarded dollars to better meet community needs,” Valdivia said. She described the staff recommendations: conduct the public hearing and accept testimony; approve a substantial amendment to reprogram $745,009.04 in HOME funds to the first‑time homebuyer program; approve a substantial amendment to transfer $868,398.81 from Neighborhood Stabilization Program 3 funds into the CDBG first‑time homebuyer program funds; and authorize the city manager or designee to submit required documents to HUD.

Valdivia said the changes would not affect the city’s general fund because the dollars are previously awarded and budgeted; staff recommended approval to ensure timely expenditure of federal funds to support housing needs. The public hearing was opened, no public speaker cards were submitted, and the council closed the hearing before voting. A motion to approve the items (PH‑1 a–d) was made and seconded; the council approved the amendments unanimously, according to the meeting record.

Staff noted a consultant, LDM, attended the meeting and was available for questions. The council did not request additional changes during the hearing.

The amendments require submission of documentation to HUD and adjustments to existing city budget accounts to reflect the reprogramming and transfers.