(a) Any facility which has a valid license or operating certificate on the effective date of this Part, which does not meet all the requirements of this Part shall not be relicensed or recertified unless the license or certificate holder applies for and is granted a deferral of any requirement not met. No deferral shall be granted unless the facility has submitted a complete and adequate site and space utilization plan prepared in accordance with section 77.2 of this Part.

(c) Deferral of any other requirements not waived as provided in this section may be granted upon submission of plans and schedules for replacement, renovation, reconstruction, alteration or improvement of facilities which will result in compliance with all requirements upon completion.

(d) Denial of an application for deferral shall be made only after the applicant has been afforded a hearing in accordance with the provisions of section 73.4 of this Title and, if such hearing is held, on the basis of the findings of such hearing.

In the event that an application for deferral is denied, the facility shall have up to one year to make whatever changes in facility operations or physical plant are necessary to comply with any requirement of this Part not deferred. At the conclusion of this period, if the facility is not in compliance, the commissioner, in his discretion, may revoke the facility's operating certificate, limit the operating certificate in terms of the kind or number of patients or residents, or allow the facility additional time to comply.