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(1) Except as provided in Subsection (2), after June 30, 1996, the division may not provide residential services to persons with disabilities who are under 11 years of age.
(2) The prohibition of Subsection (1) does not include residential services that are provided:
(a) for persons in the custody of the Division of Child and Family Services;
(b) under a plan for home-based services, including respite and temporary residential care or services provided by a professional parent under contract with the division; or
(c) after a written finding by the director that out-of-home residential placement is the most appropriate way to meet the needs of the person with disabilities and his family.