(a) Before the board approves any project application submitted under this chapter, the department, through the division with responsibility for compliance matters, shall:
(1) assess:
(A) the compliance history in this state of the applicant and any affiliate of the applicant with respect to all applicable requirements; and
(B) the compliance issues associated with the proposed project; and
(2) provide to the board a written report regarding the results of the assessments described by Subdivision (1).
(b) The written report described by Subsection (a)(2) must be included in the appropriate project file for board and department review.

(c) The board shall fully document and disclose any instances in which the board approves a project application despite any noncompliance associated with the project, applicant, or affiliate that is reported by the department under Subsection (a)(2).
(d) In assessing the compliance of the project, applicant, or affiliate, the board shall consider any relevant compliance information in the department’s database created under § 2306.081, including compliance information provided to the department by the Texas State Affordable Housing Corporation.
(e) For a project application seeking financial assistance administered through the department’s multifamily housing programs, the department may not include in the report provided under Subsection (a)(2) any instance of noncompliance associated with a project of the applicant or affiliate of the applicant if the applicant or affiliate has submitted documentation, in a format acceptable to the department, demonstrating that the responsibility for project compliance was delegated to another participant in the project, including, if applicable, a related party as defined by § 2306.6702.