(a) This section does not apply if its application would disqualify the State or a county from receiving federal money.
(b) (1) The Board of County Commissioners shall:
(i) adopt policies, regulations, or amendments that are necessary to implement:
1. federally or State assisted housing programs; and
2. locally funded housing programs undertaken in accordance with this Division II;
(ii) review and approve each housing project that the Washington Authority proposes before the housing project may be started; and
(iii) establish maximum income limits for persons of eligible income.
(2) For special housing projects, the Board of County Commissioners may establish exceptions to the maximum income limits for persons of eligible income.