(a) The department may grant an exception to compliance with one or more provisions of section 448.3 of this Part upon finding that compliance will result in undue hardship on a group home. The authorized agency applying for the exception must demonstrate that, aside from the exception, the group home is in substantial compliance with the provisions of section 448.3 of this Part and that granting the exception will not create any hazardous conditions which could impair the health or safety of the children. The group home must comply with any alternative requirements the department may consider necessary for the protection of the health or safety of the children. All exceptions must be requested by the authorized agency in writing and approved by the department in writing.

(b) The provisions of this Part that become effective September 1, 1994 shall apply to those group homes established on or after such date. If compliance with any of the provisions of this Part that become effective September 1, 1994 creates an undue hardship for any group home in operation prior to such date, the group home must, within one year of such date, submit to the department a schedule indicating when the group home will achieve compliance with such provision. The compliance schedule is subject to approval by the department and compliance with all provisions that become effective September 1, 1994 must be achieved within five years of such date.