(a) (1) The Department or a public housing agency may deny assistance under the State Program by:

(i) denying a voucher under the State Program;

(ii) withdrawing a State Program voucher;

(iii) refusing to enter into a contract for housing assistance payments; or

(iv) refusing to approve a lease under the State Program.

(2) The Department or a public housing agency shall deny assistance under the State Program to sex offenders who are subject to a lifetime registration requirement under a State sex offender registration program.

(3) The Department or a public housing agency may deny assistance under the State Program if the Department or a public housing agency finds that any individual residing in a unit rented using assistance from the State Program has been convicted of:

(i) a drug-related crime under State law; or

(ii) a violent crime.

(4) If the Department or public housing agency denies assistance under the State Program, the Department or the public housing agency shall promptly provide the applicant with a notice explaining the denial and indicating that the applicant may request an informal review.

(b) (1) The Department or a public housing agency may terminate assistance under the State Program by:

(i) refusing to enter into a State Program contract;

(ii) refusing to approve a lease under the State Program; or

(iii) terminating housing assistance payments under a State Program contract.

(2) The Department or a public agency shall terminate assistance under the State Program for:

(i) families who were evicted under the State program for serious violations of the lease;

(ii) families who fail to sign any forms from the Department or a public housing agency indicating consent to obtain information; and

(iii) sex offenders subject to a lifetime registration requirement under a State sex offender registration program.

(c) When determining the denial or termination of assistance under the State Program, the Department may consider all relevant circumstances, including the seriousness of the case, the extent of participation or culpability of individual family members, mitigating circumstances related to the disability of a family member, and the effects of denial or termination of assistance on other family members who were not involved in the action or failure if a family member:

(1) violates any obligations under the State Program;

(2) has been evicted from federally assisted housing for violent criminal activity that threatened the health, safety, or welfare of other residents within the preceding 3 years;

(3) has committed fraud, bribery, or any other corrupt or criminal act in connection with the State Program;

(4) owes a financial obligation to the Department or public housing agency in connection with another housing or rental assistance program;

(5) breaches a repayment agreement to pay amounts owed to the Department or public housing agency;

(6) has engaged in or threatened abusive or violent behavior toward Department or public housing agency employees, the property owner or property management staff, or other residents; or

(7) receives assistance under the State Program and is absent from the unit for more than 180 consecutive days.

(d) (1) The Department or a public housing agency may prohibit other family members who participated in or were culpable for actions specified under this section from residing in a unit rented using assistance from the State Program.

(2) In making the determination under paragraph (1) of this subsection, the Department or a public housing agency may consider:

(i) the seriousness of the case;

(ii) the extent of participation by or culpability of individual family members;

(iii) mitigating circumstances related to the disability of a family member; and

(iv) the effects of the prohibition on other family members who were not involved in the action or failure.