(1) The department shall issue a license for a period of 1 to 3 years in duration for an adult foster home to any license applicant meeting all of the requirements established by these rules in this subchapter and the governing statutes.

(2) The department shall determine whether an applicant meets the requirements after conducting a licensing study.

(3) The department shall renew the license on the expiration date of the current license if:

(a) the licensee makes written application for issuance at least 30 days prior to the expiration date of the current license; and

(b) the licensee continues to meet all requirements established by these rules in this subchapter, as determined by the department after a licensing study.

(4) An adult foster home may be licensed to care for four or fewer aged persons or disabled adults in need of such care, and shall not care for more residents than the number allowed by their license.