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City of Santa Ana <br />21-HHAP-00012 <br />Page 10 of 23 <br />obligated after May 31, 2023, continuums of care and cities shall not expend any <br />remaining portion of the 50 percent of program allocations required to have been <br />obligated unless and until both of the following occur: <br />i)On or before June 30, 2023, the Grantee submits an alternative disbursement <br />plan to HCFC that includes an explanation for the delay and a plan <br />to fully expend these funds by December 31, 2023. <br />ii)HCFC approves the alternative disbursement plan or provides the Grantee <br />with guidance on the revisions needed in order to approve the alternative <br />disbursement plan. <br />iii)If the funds identified In the approved alternative disbursement plan are <br />not fully expended by Dec ember 31, 2023, the funds shall be returned to the <br />HCFC for a subsequent round of awards by HCFC. <br />f)Grantees that are counties shall contractually obligate the full <br />all ocation (100 percent) awarded to them by May 31, 2023. Any funds that are <br />not contractually obligated by this date shall be reverted to the Continuum of <br />Care that serves the county. Specific to Los Angeles County, funds that are not <br />contractually obligated by this date shall be divided proportionately using the <br />HHAP-2 funding allocation formula among the four CoC's that serve Los <br />Angeles County: City of Glendale CoC, City of Pasadena Coe, the City of Long <br />Beach Coe, and the Los Angeles Homeless Services Authority. <br />Counties not obligating their full program allocation by Ma y 31 , 2023 are required <br />to notify HCFC, on or before that date, of the name of the CoC(s) in which the <br />county is served, and the amount of program funds that will be rever ted to <br />the CoC(s). By June 30, 2023, the county shall provide HCFC with evidence that <br />the funds were transferred and submit an updated budget that clearly identif ies <br />the funds that were transferred. <br />g)HHAP-2 funds shall be expended by June 30, 2026 <br />h)In accordance with Health and Safety Code section 50220.5, subdivision (1), <br />HCFC retains the right to require a corrective action plan of gra ntees that are not <br />on track to fully expend funds by the statutorily required deadline. <br />i)Any funds not expended by June 30, 2026 shall revert to the General Fund. <br />5)Ineligible Costs <br />HHAP-2 funds shall not be used for costs associated with activities in violation of <br />any law or for any activities not consistent with the intent of the Program and <br />the eligible uses identified in Health and Safety Code section 50220.5. <br />� <br />Initial Here <br />EXHIBIT 1