Lancaster proposes $1.44 million CDBG allocation for 2025; combined with carryover the city will deploy about $2.6 million

Lancaster City’s Community and Economic Development staff presented a draft 2025 Annual Action Plan for the U.S. Department of Housing and Urban Development’s Community Development Block Grant (CDBG) program and asked council to move the plan to the full council agenda for June 10.

Community Development Administrator Jen Remmel said the city’s anticipated 2025 entitlement award plus projected program income totals $1,438,690, and that when combined with unspent funds carried forward from earlier years the city has a roughly $2.6 million funding picture to allocate this year. Program income is estimated at $25,043; staff reported a remaining balance from prior years of about $1,166,000.

Remmel said staff proposes allocating the 2025 entitlement as follows: $620,000 for affordable‑housing preservation and development programs (including the city’s critical repair and proactive housing code enforcement programs); $370,000 for public infrastructure improvements in low‑to‑moderate income neighborhoods; $182,000 for public services (including health‑and‑housing and police social‑work programs and Tenfold’s fair housing work); $20,000 for economic development activities; and $248,000 for planning and administration.

When the city’s carryover is included, the broader funding plan presented to council showed $1,510,000 toward affordable housing, $445,000 for public infrastructure, $193,000 for public services, $40,000 for economic development, and $416,000 for program administration and planning projects (such as the East End small‑area plan).

Why it matters: The CDBG program is a federal entitlement that the city uses to fund housing preservation, infrastructure and social services targeted principally to low‑ and moderate‑income residents. Remmel presented demographic and program impact figures from 2024, noting a large share of beneficiaries were extremely low‑income households.

Public process and timing: The draft plan was posted April 22, staff held a public meeting on May 27 and the city’s public‑comment period closed May 28; staff reported no written or oral public comments were received during the formal comment period. The plan will return to the full council on June 10 for formal consideration.

Council discussion: Councilors asked whether reduced federal allocations or census changes would affect staffing or the city’s ability to sustain current programs. Remmel said the slight reduction for 2025 is tied to census adjustments and that the current funding picture allows the city to continue internal positions funded by CDBG through at least mid‑2026; future federal decisions will determine 2026 allocations.

Next steps: Council moved the Annual Action Plan to full council on June 10 for formal consideration and action.