(a) The department shall develop, and the board by rule shall adopt, a policy providing for the debarment of a person from participation in programs administered by the department.
(b) The department may debar a person from participation in a department program on the basis of the person's past failure to comply with any condition imposed by the department in the administration of its programs.
(c) The department shall debar a person from participation in a department program if the person:
(1) materially or repeatedly violates any condition imposed by the department in connection with the administration of a department program, including a material or repeated violation of a land use restriction agreement regarding a development supported with a housing tax credit allocation; or
(2) is debarred from participation in federal housing programs by the United States Department of Housing and Urban Development.
(d) A person debarred by the department from participation in a department program may appeal the person's debarment to the board.