Grants to States for Construction of State Home Facilities

To assist States to acquire or construct State home facilities for furnishing domiciliary or nursing home care to veterans, and to expand, remodel, or alter existing buildings for furnishing domiciliary, nursing home, or hospital care to veterans in State homes.

Related Programs

Examples of Funded Projects

(1) Constructed new 200 bed State home nursing home replacement building; (2) Constructed new 168 bed State nursing home; (3) Remodeled existing State home nursing home building; (4) Remodeled existing State home domiciliary building; and (5) Remodeled existing State home hospital building to meet Americans With Disabilities Act requirements.

Agency - Department of Veterans Affairs

The Department of Veterans Affairs strives for excellence in patient care and veteran's benefits for its constituents through high quality, prompt and seamless service to United States veterans.

Website Address

Program Accomplishments

In FY 2007 committed to 23 projects valued at $172 million. Twenty-two of the 23 projects were designated life safety. On 9/27/07, Secretary Nicholson approved the priority List of Pending State Home Construction Grant Applications for FY 2008. The Priority List is used as the basis for awarding grants during that fiscal year. There are a total of 185 projects on the FY 2008 Priority List and are currently valued at $978,308,000. The first 100 projects had certified 35 percent state matching funds and are ranked in priority group 1. The current value of the 100 priority group 1 projects is $542,151,000. The remaining 85 projects will be considered for priority group 1 status once the state provides the required certification of 35 perent state matching funds.

Uses and Use Restrictions

Grant funds must be used for: The construction of new domiciliary or nursing home buildings or acquisition of such facilities; the expansion, remodeling, or alteration of existing buildings for the provision of domiciliary, nursing home, or hospital care in State homes, and the provision of initial equipment for any such buildings.

All new domiciliary buildings must be constructed according to nursing home care standards for convertibility.

Construction cost means the amount found by the Secretary to be necessary for a construction project, including architect fees, but excluding land acquisition costs.

Eligibility Requirements

Applicant Eligibility

Any State may apply after assuring that the assisted facility will be owned by the State; and will be used primarily for veterans.

Beneficiary Eligibility

Veterans meeting VA and State admission criteria.


Costs will be determined in accordance with OMB Circular No. A-87 for State and local governments.

Aplication and Award Process

Preapplication Coordination

(1) The standard application forms as furnished by the Federal agency and required by Title 38, CFR Part 43, "Uniform Administrative Requirements" must be used for this program.

(2) The initial application forms are Standard Form 424, 424C, and 424D, Initial Application for Federal Assistance, with attachments.

(3) Consultation or assistance is available from Headquarters Office personnel to aid in the preparation of initial application.

(4) An informal initial application conference is usually not needed; however, notification by telephone of intent to submit an initial application is recommended.

(5) An environmental assessment is required for this program if outside construction exceeds 75,000 gross square feet to determine whether an environmental impact statement is necessary.

(6) This program is eligible for coverage under E.O.

12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

Application Procedures

The standard application forms as furnished by the Federal agency and required by Title 38, CFR Part 43, "Uniform Administrative Requirements" must be used for this program. (Standard Form 424, Application for Federal Assistance for Construction Programs, with attachments.) This program is excluded from coverage under OMB Circular No. A-110.

Award Procedures

Formal approval of the award of the assistance grant to the State is made by the Secretary of Veterans Affairs with program administered by Chief Consultant, Geriatrics and Extended Care Strategic Healthcare Group.


Initial application is due by April 15 for all projects. State assurance of matching funds is due by August 15 to receive priority group one status.


Public Laws 88-450, 89-311, 90-432, 91-178, 93-82, 94-581, 95-62, 96-151, 96-330, 97-251, 97-295, 98-528, 99-166, 99-576, and 100-322, 38 U.S.C. 8131-8137.

Range of Approval/Disapproval Time

From 30 to 60 workdays after receipt of bid tabulations, revised budget page based on bid, and signed Memorandum of Agreement.


No application will be disapproved without the opportunity of a hearing.


Not applicable.

Assistance Considerations

Formula and Matching Requirements

38 U.S.C. 8135 (D)(2). Federal participation provides up to 65 percent of total project cost, with the State providing the remainder.

Length and Time Phasing of Assistance

Accounts are canceled five years after appropriation expires. Appropriations received in fiscal year 1994 or later do not expire. Reimbursement payments are made to the State based on Federal share of cost incurred.

Post Assistance Requirements


Required in accordance with 38 CFR 59.124.

Approved Final VA Grant Inspection and equipment list, if applicable, required prior to final payment.


In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Nonprofit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133.


Records should be maintained for the period established by Memorandum of Agreement (7 to 20 years depending upon the amount of the grant). If any claim or audit is started before the expiration of this time period, the records shall be retained until all litigation, claims or audit findings involving the records have been resolved.

Financial Information

Account Identification



(Obligations) FY 07 $73,515,000; FY 08 est $174,588,000; and FY 09 est $86,650,000.

Range and Average of Financial Assistance

$22,866 to $14,312,110; $2,531,505.

Regulations, Guidelines, and Literature

Title 38 Code of Federal Regulations 59, Grants to States for Construction of State Home Facilities.

Information Contacts

Regional or Local Office

Not applicable.

Headquarters Office

Chief Consultant, Geriatrics and Extended Care Strategic Healthcare Group (114), Department of Veterans Affairs, Central Office, Washington, DC 20420. Telephone: (202) 273-8536.

Criteria for Selecting Proposals

As required by Title 38, U.S.C. Section 5035, all applications are reviewed and accorded priority in the following order: (1) adequate State financial support (matching funds); (2) construction/renovations to remedy life/safety issues; (3) states without state nursing homes constructed or acquired under Title 38 U.S.C. 8131-8137; (4) states with great need for new beds; (5) renovations not listed in (2); (6) states with significant need for new beds; (7) states with limited need for new beds; and (8) other criteria determined appropriate and published in regulations (38 CFR 59).

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