[Code of Federal Regulations]
[Title 38, Volume 2]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 38CFR59.110]

[Page 891]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
          CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS (CONTINUED)
 
PART 59--GRANTS TO STATES FOR CONSTRUCTION OR ACQUISITION OF STATE HOMES--
Table of Contents
 
Sec. 59.110  Recapture provisions.

    If a facility for which a grant has been awarded ceases to be 
operated as a State home for the purpose for which the grant was made, 
the United States shall be entitled to recover from the State which was 
the recipient of the grant or from the then owner of such construction 
as follows:
    (a) If less than 20 years has lapsed since the grant was awarded, 
and VA provided 65 percent of the estimated cost to construct, acquire 
or renovate a State home facility principally for furnishing domiciliary 
care, nursing home care, adult day health care, hospital care, or non-
institutional care to veterans, VA shall be entitled to recover 65 
percent of the current value of such facility (but in no event an amount 
greater than the amount of assistance provided for such under these 
regulations), as determined by agreement of the parties or by action 
brought in the district court of the United States for the district in 
which the facility is situated.
    (b) Based on the time periods for grant amounts set forth below, if 
VA provided between 50 and 65 percent of the estimated cost of 
expansion, remodeling, or alteration of an existing State home facility, 
VA shall be entitled to recover the amount of the grant as determined by 
agreement of the parties or by action brought in the district court of 
the United States for the district in which the facility is situated:

------------------------------------------------------------------------
                                                               Recovery
            Grant amount  (dollars in thousands)             period  (in
                                                                years)
------------------------------------------------------------------------
0-250......................................................            7
251-500....................................................            8
501-750....................................................            9
751-1,000..................................................           10
1,001-1,250................................................           11
1,251-1,500................................................           12
1,501-1,750................................................           13
1,751-2,000................................................           14
2,001-2,250................................................           15
2,251-2,500................................................           16
2,501-2,750................................................           17
2,751-3,000................................................           18
Over 3,000.................................................           20
------------------------------------------------------------------------

    (c) If the magnitude of the VA contribution is below 50 percent of 
the estimated cost of the expansion, remodeling, or alteration of an 
existing State home facility recognized by the Department of Veterans 
Affairs, the Under Secretary for Health may authorize a recovery period 
between 7 and 20 years depending on the grant amount involved and the 
magnitude of the project.
    (d) This section does not apply to any portion of a State home in 
which VA has established and operates an outpatient clinic.

(Authority: 38 U.S.C. 101, 501, 1710, 1742, 8105, 8131-8137)