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EXHIBIT 1 <br />City of Santa Ana <br />21-HHAP-00012 <br />Page 11 of 23 <br />HCFC reserves the right to request additional clarifying information to determine the <br />reasonableness and eligibility of all uses of the funds made available by this <br />Agreement. If the Grantee or its funded subrecipients use HHAP-2 funds to pay <br />for ineligible activities, the Grantee shall be required to reimburse these funds <br />to Agency. <br />An expenditure which Is not authorized by this Agreement, or by written approval of <br />the Grant Manager or his/her designee, or which cannot be adequately documented, <br />shall be disallowed and must be reimbursed to Agency by the Grantee. <br />HCFC, at its sole and absolute discretion, shall make the final determination <br />regarding the allowability of HHAP-2 fund expenditures. <br />Program funds shall not be used to supplant existing local funds for homeless <br />housing., assistance, or prevention. <br />Reimbursements are not permitted in Hi-IAP-2 for any expenditures prior to the date <br />of execution of this Agreement. <br />