[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: 38CFR59.50]

[Page 885-888]
 
            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. 59.50  Priority list.

    (a) The Secretary will make a list prioritizing the applications 
that were received on or before August 15 and that were approved under 
Sec. 59.20 of this part. Except as provided in paragraphs (b) and (c) of 
this section, applications will be prioritized from the highest to the 
lowest in the following order:
    (1) Priority group 1. An application from a State that has made 
sufficient funds available for the project for which the grant is 
requested so that such project may proceed upon approval of the grant 
without further action required by the State (such as subsequent 
issuance of bonds) to make such funds available for the project. To meet 
this criteria, the State must provide to VA a letter from an authorized 
State budget official certifying that the State funds are, or will be, 
available for the project, so that if VA awards the grant, the project 
may proceed without further State action to make such funds available 
(such as further action to issue bonds). If the certification is based 
on an Act authorizing the project and making available the State's 
matching funds for the project, a copy of the Act must be submitted with 
the certification.
    (i) Priority group 1--subpriority 1. An application for a project to 
remedy a condition, or conditions, at an existing facility that have 
been cited as threatening to the lives or safety of the residents in the 
facility by a VA Life Safety Engineer, a State or local government 
agency (including a Fire Marshal), or an accrediting institution 
(including the Joint Commission on Accreditation of Healthcare 
Organizations). This priority group does not include applications for 
the addition or replacement of building utility systems, such as heating 
and air conditioning systems or building features, such as roof 
replacements. Projects in this subpriority will be further prioritized 
in the following order: seismic; building construction; egress; building 
compartmentalization (e.g., smoke barrier, fire walls); fire alarm/
detection; asbestos/hazardous materials; and all other projects. 
Projects in this subpriority will be further prioritized based on the 
date the application for the project was received in VA (the earlier the 
application was received, the higher the priority given).
    (ii) Priority group 1--subpriority 2. An application from a State 
that has not previously applied for a grant under 38 U.S.C. 8131-8137 
for construction or acquisition of a State nursing home. Projects in 
this subpriority will be further prioritized based on the date the 
application for the project was received in VA (the earlier the 
application was received, the higher the priority given).
    (iii) Priority group 1--subpriority 3. An application for 
construction or acquisition of a nursing home or domiciliary from a 
State that has a great need for the beds that the State, in that 
application, proposes to establish. Projects in this subpriority will be 
further prioritized based on the date the application for the project 
was received in VA (the earlier the application was received, the higher 
the priority given).
    (iv) Priority group 1--subpriority 4. An application from a State 
for renovations to a State Home facility other than renovations that 
would be included in subpriority 1 of Priority group 1. Projects will be 
further prioritized in the following order: adult day health care 
construction; nursing home construction (e.g., patient privacy); code 
compliance under the Americans with Disabilities Act; building systems 
and utilities (e.g., electrical; heating, ventilation, and air 
conditioning (HVAC); boiler; medical gasses; roof; elevators); clinical-
support facilities (e.g., for dietetics, laundry, rehabilitation 
therapy); and general renovation/upgrade (e.g., warehouse, storage, 
administration/office, multipurpose). Projects in this subpriority will 
be further prioritized based on the date the application for the project 
was received in VA (the earlier the application was received, the higher 
the priority given).

[[Page 886]]

    (v) Priority group 1--subpriority 5. An application for construction 
or acquisition of a nursing home or domiciliary from a State that has a 
significant need for the beds that the State in that application 
proposes to establish. Projects in this subpriority will be further 
prioritized based on the date the application for the project was 
received in VA (the earlier the application was received, the higher the 
priority given).
    (vi) Priority group 1--subpriority 6. An application for 
construction or acquisition of a nursing home or domiciliary from a 
State that has a limited need for the beds that the State, in that 
application, proposes to establish. Projects in this subpriority will be 
further prioritized based on the date the application for the project 
was received in VA (the earlier the application was received, the higher 
the priority given).
    Note to paragraph (a)(1): The following chart is intended to provide 
a graphic aid for understanding Priority group 1 and its subpriorities.

[[Page 887]]

[GRAPHIC] [TIFF OMITTED] TR26JN01.000

    (2) Priority group 2. An application not meeting the criteria of 
paragraph (a)(1) of this section but meeting the criteria of paragraph 
(a)(1)(i) of this section. Projects within this priority group will be 
further prioritized the same as in paragraph (a)(1)(i) of this section.
    (3) Priority group 3. An application not meeting the criteria of 
paragraph (a)(1) of this section but meeting the criteria of paragraph 
(a)(1)(ii) of this section. Projects within this priority group will be 
further prioritized the same as in paragraph (a)(1)(ii) of this section.
    (4) Priority group 4. An application not meeting the criteria of 
paragraph (a)(1) of this section but meeting the criteria of paragraph 
(a)(1)(iii) of this

[[Page 888]]

section. Projects within this priority group will be further prioritized 
the same as in paragraph (a)(1)(iii) of this section.
    (5) Priority group 5. An application not meeting the criteria of 
paragraph (a)(1) of this section but meeting the criteria of paragraph 
(a)(1)(iv) of this section. Projects within this priority group will be 
further prioritized the same as in paragraph (a)(1)(iv) of this section.
    (6) Priority group 6. An application not meeting the criteria of 
paragraph (a)(1) of this section but meeting the criteria of paragraph 
(a)(1)(v) of this section. Projects within this priority group will be 
further prioritized the same as in paragraph (a)(1)(v) of this section.
    (7) Priority group 7. An application not meeting the criteria of 
paragraph (a)(1) of this section but meeting the criteria of paragraph 
(a)(1)(vi) of this section. Projects within this priority group will be 
further prioritized the same as in paragraph (a)(1)(vi) of this section.
    (b) An application will be given highest priority on the priority 
list for the next fiscal year within the priority group to which it is 
assigned in paragraph (a) of this section (without consideration of 
subpriorities) if:
    (1) During the current fiscal year the State accepted a grant for 
that application that was less than the amount that would have been 
awarded if VA had sufficient appropriations to award the full amount of 
the grant requested; and
    (2) The application was the lowest-ranking application on the 
priority list for the current fiscal year for which grant funds were 
available.
    (c) An application will be given priority on the priority list 
(after applications described in paragraph (b) of this section) for the 
next fiscal year ahead of all applications that had not been approved 
under Sec. 59.20 on the date that the application was approved under 
Sec. 59.20, if:
    (1) During the current fiscal year VA would have awarded a grant 
based on the application except for the fact that VA determined that the 
State did not, by July 1, provide evidence that it had its matching 
funds for the project, and
    (2) The State was notified prior to July 1 that VA had funding 
available for this grant application.
    (d) The priority list will not contain any project for the 
construction or acquisition of a hospital or hospital beds.
    (e) For purposes of establishing priorities under this section:
    (1) A State has a great need for nursing home and domiciliary beds 
if the State:
    (i) Has no State homes with nursing home or domiciliary beds, or
    (ii) Has an unmet need of 2,000 or more nursing home and domiciliary 
beds;
    (2) A State has a significant need for nursing home and domiciliary 
beds if the State has an unmet need of 1,000 to 1,999 nursing home and 
domiciliary beds; and
    (3) A State has a limited need for nursing home and domiciliary beds 
if the State has an unmet need of 999 or fewer nursing home and 
domiciliary beds.
    (f) Projects that could be placed in more than one subpriority will 
be placed in the subpriority toward which the preponderance of the cost 
of the project is allocated. For example, under priority group 1--
subpriority 1, if a project for which 25 percent of the funds needed 
would concern seismic and 75 percent of the funds needed would concern 
building construction, the project would be placed in the subpriority 
for building construction.
    (g) Once the Secretary prioritizes the applications in the priority 
list, VA will not change the priorities unless a change is necessary as 
a result of an appeal.

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