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City of Santa Ana 25-CALHOME-18740 Page 10 of 17 EXHIBIT D 1) Contractor fails to complete its Project by the expenditure deadline(s) in Exhibit E, Section 2, Term of Agreement and Deadlines; or 2) Contractor, prior to the Project completion date at Exhibit E, Section 2, Term of Agreement and Deadlines, fails to expend any CalHome funds disbursed by the Department applicable to the award of CalHome funds granted herein, then the Contractor shall: (a) repay all such disbursed CalHome funds to the Department; and, (b) forfeit and have no further rights or claim to any other remaining herein-granted CalHome award funds. B. Funds authorized by this Agreement shall be disencumbered in whole or in part if funds are not expended within the time frames specified in Exhibit E. C. The Department may exercise its reasonable discretion to disencumber funds or to grant an extension of time for completion in accordance with Guidelines Section 603, subdivision (d). Any extensions are subject to any and all applicable encumbrances, deadlines, and limitations, including, but not limited to, Health & Safety Code section 54006, subdivision (g). Documentation to support the Contractor's expenditure of funds shall be received and approved prior to the contract expiration date. 17. Change of Conditions Notwithstanding the Department's obligations to provide payments pursuant to Exhibit B and Exhibit E hereof, the Department reserves the right to evaluate the Contractors' need for Program funds based on new information or funding sources associated with the Work. If the Department determines that the Program funds, or a portion thereof, are no longer necessary to complete the Work, the Department may reduce the amount of the grant or loan accordingly. In the event the Department determines, in its sole discretion, that the Work is no longer financially feasible, any commitment issued by the Department and this Agreement may be terminated. 18. Obligations of Contractor with Respect to Certain Third-Party Relationships The Contractor shall remain fully obligated under the provisions of this Agreement, notwithstanding its designation of any third-party or parties for the undertaking of all or any part of the Work with respect to which assistance is being provided under this Agreement. The Contractor shall comply with all requirements of the Department necessary to ensure the completion, occupancy, and use of the Work in accordance with this Agreement. 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