(a) The department may contract with an independent third party to monitor a development during its construction or rehabilitation and during its operation for compliance with:
(1) any conditions imposed by the department in connection with the allocation of housing tax credits to the development; and
(2) appropriate state and federal laws, as required by other state law or by the board.
(b) The department may assign department staff other than housing tax credit division staff to perform the relevant monitoring functions required by this section in the construction or rehabilitation phase of a development.

(c) For a violation other than a violation that poses an imminent hazard or threat to health and safety, the department must provide the owner of a development with the following periods to correct a failure to comply with a condition or law described by Subsection (a)(1) or (2):
(1) 30 days for a failure to file the annual owner’s compliance report; and
(2) 90 days for any other failure to comply under this section.
(d) For good cause shown, the executive director may extend the periods provided under Subsection (c).
(e) Solely for purposes of determining eligibility to apply for and receive financial assistance from the department, a development may not be considered to be in noncompliance with an applicable condition or law if the owner of the development takes appropriate corrective action during the period provided under Subsection (c).
(f) Notwithstanding Subsection (e), the department shall:
(1) submit to the applicable federal agency any report required by federal law regarding an owner’s noncompliance with a condition or law described by Subsection (a)(1) or (2); and
(2) for purposes of developing and administering the policy relating to debarment under § 2306.0504, consider recurring violations of a condition or law described by Subsection (a)(1) or (2), including violations that are corrected during the applicable period provided under Subsection (c).