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DocuSign Envelope ID: AF33FDOA-51 BO-4F2D-BCCA-CF1 E46404197 <br />EXHIBIT 1 <br />FY 2023 COMMUNITY PROJECT FUNDING <br />GRANT AGREEMENT NO. B-23-CP-CA-0109 <br />B. Approved Budget. The Grantee must use the Grant Funds as provided by the <br />Approved Budget. Unless changed in accordance with Article III, section C of this Grant <br />Agreement, the Approved Budget shall be the line -item budget that is approved by HUD as of <br />the date that HUD signs this Grant Agreement. For reference, HUD will attach this approved <br />line -item budget as Appendix 2 to this Grant Agreement on the date that HUD signs this Grant <br />Agreement. <br />C. Project and Budget Changes. All changes to the Grantee's Project or Approved Budget <br />must be made in accordance with 2 CFR 200.308 and this Grant Agreement. To request HUD's <br />approval for a change in the Project or Approved Budget, the Grantee must submit a formal letter <br />to the Director of HUD's Office of Economic Development - Congressional Grants Division <br />through the assigned Grant Officer. The letter must be submitted by email to the assigned Grant <br />Officer and must provide justification for the change. The email submitting the letter must also <br />include a revised project narrative or revised line -item budget, as applicable, that includes the <br />requested change. The Grantee is prohibited from making project or budget changes that would <br />conflict with the Applicable Appropriations Act Conditions described in Article III, section D of <br />this Grant Agreement. The assigned Grant Officer for this grant is provided in the Award Letter <br />for this grant and found on HUD's website. The HUD Office of Economic Development — <br />Congressional Grants Division will notify the Grantee in writing, by email, whether HUD <br />approves or disapproves the change. Before the Grantee expends Grant Funds in accordance <br />with any change approved by HUD or otherwise allowed by 2 CFR 200.308, the Grantee must <br />update its grant information in Disaster Recovery Grant Reporting (DRGR) to reflect that <br />change. <br />D. Applicable Appropriations Act Conditions. The conditions that apply to the Grant <br />Funds as provided by the Consolidated Appropriations Act, 2023 and the Explanatory Statement <br />are hereby incorporated and made part of this Grant Agreement. In the event of a conflict <br />between those conditions, the conditions provided by the Act will govern. The Grant Funds are <br />not subject to the Community Development Block Grants regulations at 24 CFR part 570 or Title <br />I of the Housing and Community Development Act of 1974. <br />E. In accordance with 2 CFR 200.307(b), costs incidental to the generation of program <br />income may be deducted from gross income to determine program income, provided these costs <br />have not been charged to the grant. As authorized under 2 CFR 200.307(e)(2), program income <br />may be treated as an addition to the Federal award, provided that the Grantee uses that income <br />for allowable costs under this Grant Agreement. In accordance with 2 CFR 200.307(b), costs <br />incidental to the generation of program income may be deducted from gross income to determine <br />program income, provided these costs have not been charged to the grant. Any program income <br />that cannot be expended on allowable costs under this Grant Agreement must be paid to HUD <br />before closeout of the grant, unless otherwise specified by an applicable Federal statute. <br />Page 2 <br />