(a) The licensing agency will issue a standard license to operate an assisted living home if, upon completion of the probationary period and after inspection or investigation, the licensing agency finds that the home is operating in compliance with AS 47.33 and this chapter.

(b) In determining compliance with AS 47.33 and this chapter, the licensing agency will
consider the nature, size, and character of the home and its residents, and whether the prevailing
residential standards of the community and neighborhood in which the home is located are protective of
life, health, and safety.