Penalty

(1) Failure of any person receiving notice hereunder to respond as set forth in either Rule 0770-2-1- .03(2)(d) or (e) shall result in automatic debarment of such person from employment on any contract on any Tennessee Housing Development Agency project for a period of five (5) years commencing with the termination of the sixty (60) day period set out in Rule 0770-2-1-.03(2)(b). (2) In the situation where any person receiving notice hereunder responds pursuant only to Rule 0770-2- 1.03(2)(d), the Tennessee Housing Development Agency, after considering the results of the investigation and any information and statements submitted, shall within sixty (60) days of the notice required by Rule 0770-2-1-.03(2) notify in writing such person either that the Tennessee Housing Development Agency deems such person not subject to this chapter or that such person is unacceptable for employment on any contract on any Tennessee Housing Development Agency project for a period determined in the sole discretion of the Board of Directors, but not less than one (1) year nor more than five (5) years. (3) Should any person receiving notice hereunder respond pursuant to Rule 0770-2-1-.03(2)(e), the Board of Directors of the Tennessee Housing Development Agency, after considering the entire record, shall within sixty (60) days of the hearing issue its final decision or order in writing notifying such person either that the Tennessee Housing Development Agency deems such person not subject to this chapter or that such person is unacceptable for employment on any contract on any Tennessee Housing Development Agency financing or programs for a period determined in the sole discretion of the Board of Directors but not less than one (1) year nor more than five (5) years. (4) In any event, the period for which a person is unacceptable for employment on contracts on Tennessee Housing Development Agency financing or programs may be increased or decreased in individual cases at any time, if in the judgment of the Board of Directors compelling reasons warrant such action.