An application for a certificate that there exists a public need for a proposed project shall not be required for nursing facilities or nursing homes affiliated with facilities which, on January 1, 1982, and thereafter, meet all of the following criteria:
2. A facility which is licensed jointly by the Department as a nursing facility or nursing home and by the Department of Social Services as an assisted living facility.
3. A facility which observes the following restrictions on admissions: a. Admissions are only allowed pursuant to the terms of a “life care contract” guaranteeing that the full complement of services offered by the facility is available to the resident as and when needed; b. Admissions to the assisted living facility unit are restricted to individuals defined as ambulatory by the Department of Social Services; c. Admissions to the nursing facility or nursing home unit are restricted to those individuals who are residents of the assisted living facility unit.