Why did your placement's relative(s) fail an ADOPTION home study?

I had a discussion with a caseworker after one of my foster kids revealed sexual abuse. He said although she chose not to go to the police, the name would be on the registry and would prohibit the child from ever going to a placement where the abuser was residing (was older sister's boyfriend -- sister wanted to petition for the kids, but he was living with her). But the also added an uncle for taking the kids from another kinship home (don't pass around the kids, even within families, they will penalize you for it). So, my guess is that is a difficult list to argue with. I am in AZ and people can be added for simply having an investigation as well.