[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: 38CFR59.70]

[Page 889]
 
            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. 59.70  Award of grants.

    (a) The Secretary, during the fiscal year for which a priority list 
is made under this part, will:
    (1) Award a grant for each application that has been approved under 
Sec. 59.20, that is sufficiently high on the priority list so that 
funding is available for the application, that meets the additional 
application requirements in Sec. 59.60, and that meets all other 
requirements under this part for obtaining a grant, or
    (2) Conditionally approve a grant for a project for which a State 
has submitted an application that substantially meets the requirements 
of this part if the State representative requests conditional approval 
and provides written assurance that the State will meet all requirements 
for a grant not later than 180 calendar days after the date of 
conditional approval. If a State that has obtained conditional approval 
for a project does not meet all of the requirements within 180 calendar 
days after the date of conditional approval, the Secretary will rescind 
the conditional approval and the project will be ineligible for a grant 
in the fiscal year in which the State failed to fully complete the 
application. The funds that were conditionally obligated for the project 
will be deobligated.
    (b) As a condition of receiving a grant, a State must make 
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 such purpose. 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. To be eligible for inclusion in 
priority group 1 under this part, a State must make such funds available 
by August 15 of the year prior to the fiscal year for which the grant is 
requested. To otherwise be eligible for a grant and grant funds based on 
inclusion on the priority list in other than priority group 1, a State 
must make such funds available by July 1 of the fiscal year for which 
the grant is requested.
    (c) As a condition of receiving a grant, the State representative 
and the Secretary will sign three originals of the Memorandum of 
Agreement documents (one for the State and two for VA). A sample is in 
Sec. 59.170.

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