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City of Santa Ana <br />22-HHAP-10004 <br />Page 10 of 26 <br />4) Expenditure of Funds <br />This initial disbursement of HHAP-3 funds must be spent in accordance with HSC <br />sections 50218.6(e) and 50220.7, subdivisions (a)(4)(B), (a)(5), (e), and (f), as <br />described in Exhibit A, Section 4 "Scope of Work". <br />5) Ineligible Costs <br />HHAP-3 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 50220.7, subdivisions <br />(a)(4)(B), (a)(5), (e), and (f). <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-3 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-3 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 HHAP-3 for any expenditures prior to the date <br />of execution of this Agreement. <br />THE <br />Initial <br />