(a) The general purpose of any use, other than an easement, of real property held by the department for a home by a person or entity, other than the home or a resident of the home, shall meet all of the following criteria, as determined by the secretary:

1. (1) Provide substantial and direct benefits to the home and its members.
2. (2) Be appropriate and compatible with the nature of the home.
3. (3) Compensate the department in an amount that approximates fair market value, taking into consideration the value of the benefit provided to the home’s members and the investment by the lessee in the property development of the home.
4. (4) When the use contemplated carries a reasonable risk of injury or loss to the state, the home, or the members of the home, that use is appropriately insured by the lessee to cover those risks and to insure home residents, the department, and the state against liability.