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City of Santa Ana 25-CALHOME-18740 Page 5 of 17 EXHIBIT D 7. Security Documents and Lien Agreements Prior to the initial disbursement of any CalHome funds encumbered by this Agreement, the documents described in this paragraph shall be entered into, executed and, where appropriate, acknowledged and recorded in accordance with applicable law. The documents described in subsections "A" through "F" shall be provided by the Department. A. For CalHome mortgage assistance, funds shall be disbursed to Borrowers in the form of deferred payment low-interest or no interest loans. The Contractor shall ensure that all loans made by the Contractor are evidenced by a promissory note, the repayment of which is secured by a deed of trust to be recorded on the property being assisted, or by other security approved by the Department in writing. The Contractor agrees that, prior to the disbursement of funds, all said documents shall be executed and where appropriate recorded. The documents shall include provisions necessary to ensure either that the property being assisted with CalHome funds remains affordable, or that CalHome funds are recaptured upon sale of the property or in the event the unit is no longer owner- occupied. if the Contractor is a Federally Recognized Tribe or a TDHE as defined herein, and the Project is located in Indian Country, notwithstanding the foregoing, the promissory note executed between the Contractor and the Borrower must be secured against the Borrower's leasehold or other legal interest in the Indian Country, through the execution and recording of Department approved security documents with the Bureau of Indian Affairs (BIA) and the County where the Project is located . B. For project development loans to assist a housing project with predevelopment costs, funds are to be disbursed prior to acquisition of lots or homes by individual homeowners. The promissory note shall be executed by the Contractor in favor of the Department and secured by a blanket deed of trust executed by the fee owner(s) of all lots upon which the development will take place. Said deed shall be recorded in the office of the county recorder for the county in which the project will be located and shall have priority over other liens, encumbrances, and other matters of record except as may be approved by the Department in writing. At the time individual lots or units are sold to individual buyers, each individual owner-occupant borrower shall enter into a deferred payment loan setting forth the terms and conditions under which the loan of CalHome funds is being made, including those provisions necessary to ensure either that the property being assisted with CalHome funds remains affordable, or that CalHome funds are recaptured upon sale of the property or in the event the unit is no longer owner- occupied. If the Contractor is a Federally Recognized Tribe or a TDHE and the Project is located in Indian Country, notwithstanding the foregoing, the HOSN-CalHome 2024 NOFA Date: 12/12/24, Amended 1/14/2025, Amended 1/17/2025 Approval Date: 06/05/2025 Prep. Date: 11/17/2025