A. The approval for the construction of a replacement dwelling house by the Foundation is not an absolute right of a landowner. The Foundation shall only approve a request for a replacement dwelling house if the Foundation:
(1) Has approved the application for a tenant house; and
(2) Has approved an existing dwelling house as a tenant house.
B. A replacement dwelling house may be approved and used only for the current or future landowner’s personal residential use.
C. The Foundation shall approve the location and size of a replacement dwelling house as a residential structure. Unless the Foundation approves otherwise, a replacement dwelling house:
(1) Shall be located in the vicinity of other farm buildings;
(2) May not be located on a farm field;
(3) May not be smaller in size than the existing dwelling approved to be redesignated as a tenant house; and
(4) May not be more than 3,500 square feet in size, calculated by first multiplying the exterior footprint of the portions of the structure with multiple stories by the number of stories with windows, and then adding the exterior footprint of any portions of the structure with one story, but excluding basements, attics, and porches not used as living space, garages, or unenclosed decks.
D. A replacement dwelling house, including its size and location, may not be approved by the Foundation unless it conforms to local planning and zoning regulations.
E. The property owner must execute an agreement with the Foundation to prohibit a replacement dwelling house and the land where it is constructed from being separately conveyed from the farm subject to the easement. The agreement will also specify that the replacement dwelling house will be for the personal residential use of the current or future landowners. The agreement shall be recorded among the county land records and shall bind future owners of the property.
F. In counties that require subdivision of nontenant dwelling houses, the subdivision plat will state that the parcel is not to be separately conveyed from the property.
G. If the Foundation approves a replacement dwelling house that is smaller than 3,500 square feet, any proposed additions are subject to the Foundation’s prior review and approval.
H. This section does not apply to applications to replace an existing dwelling house damaged or destroyed by fire, water, or natural causes.