U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) (2)

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DocuSign Envelope ID: AF33FDOA-51B0-4F2D-BCCA-CF1E46404197 EXHIBIT 1 FY 2023 COMMUNITY PROJECT FUNDING GRANT AGREEMENT NO. B-23-CP-CA-0109 APPENDIX 6 — Conflict of Interest Requirements 1. Conflicts Subject to Procurement Regulations. When procuring property or services, the grantee and its subrecipients shall comply with the applicable conflict -of -interest rules in 2 CFR 200.317 and 2 CFR 200.318(c). In all cases not governed by 2 CFR 200.317 and 2 CFR 2O0.318(c), the Grantee and its subrecipients must follow the requirements contained in paragraphs 2-5 below. 2. General prohibition. No person who is an employee, agent, consultant, officer, or elected or appointed official of the Grantee or subrecipient and who exercises or has exercised any functions or responsibilities with respect to assisted activities, or who is in a position to participate in a decision malting process or gain inside information with regard to such activities, may obtain a financial interest or benefit from the activity, or have a financial interest in any contract, subcontract, or agreement with respect thereto, or the proceeds thereunder, either for himself or herself or for those with whom he or she has immediate family or business ties, during his or her tenure or for one year thereafter. Immediate family ties include (whether by blood, marriage or adoption) the spouse, parent (including a stepparent), child (including a stepchild), sibling (including a stepsibling), grandparent, grandchild, and in-laws of a covered person. 3. Exceptions. HUD may grant an exception to the general prohibition in paragraph (ii) upon the Grantee's written request and satisfaction of the threshold requirements in paragraph (iv), if HUD determines the exception will further the Federal purpose of the award and the effective and efficient administration of the Grantee's Project, taking into account the cumulative effects of the factors in paragraph (v). 4. Threshold requirements for exceptions. HUD will consider an exception only after the Grantee has provided the following documentation: a. A disclosure of the nature of the conflict, accompanied by an assurance that there has been public disclosure of the conflict and a description of how that disclosure was made; and b. An opinion of the Grantee's attorney that the interest for which the exception is sought would not violate state or local law. 5. Factors to be considered for exceptions. In determining whether to grant a requested exception after the Grantee has satisfactorily met the threshold requirements in paragraph (iii), HUD will consider the cumulative effect of the following factors, where applicable: a. Whether the exception would provide a significant cost benefit or an essential degree of expertise to the program or project that would otherwise not be available; b. Whether an opportunity was provided for open competitive bidding or negotiation; c. Whether the person affected is a member of a group or class of low- or moderate - income persons intended to be the beneficiaries of the assisted activity, and the exception Page 17