Unless the director of a designated State unit awards grants under section 796f–2 of this title to eligible agencies in a State for a fiscal year, the Administrator shall award grants under this section to such eligible agencies for such fiscal year from the amount of funds allotted to the State under subsection (c) or (d) of section 796f of this title for such year.

(1) In general Unless the director of a designated State unit awards grants under section 796f–2 of this title to eligible agencies in a State for a fiscal year, the Administrator shall award grants under this section to such eligible agencies for such fiscal year from the amount of funds allotted to the State under subsection (c) or (d) of section 796f of this title for such year.

(2) Grants The Administrator shall award such grants, from the amount of funds so allotted, to such eligible agencies for the planning, conduct, administration, and evaluation of centers for independent living that comply with the standards and assurances set forth in section 796f–4 of this title.

In any State in which the Administrator has approved the State plan required by section 796c of this title, the Administrator may make a grant under this section to any eligible agency that—

(1) has the power and authority to carry out the purpose of this subpart and perform the functions set forth in section 796f–4 of this title within a community and to receive and administer funds under this subpart, funds and contributions from private or public sources that may be used in support of a center for independent living, and funds from other public and private programs;

(2) is determined by the Administrator to be able to plan, conduct, administer, and evaluate a center for independent living consistent with the standards and assurances set forth in section 796f–4 of this title; and

(3) submits an application to the Administrator at such time, in such manner, and containing such information as the Administrator may require.

In the administration of the provisions of this section, the Administrator shall award grants for a fiscal year to any eligible agency that has been awarded a grant under this subpart for the preceding fiscal year, unless the Administrator makes a finding that the agency involved fails to meet program and fiscal standards and assurances set forth in section 796f–4 of this title.

In selecting from among applicants for a grant under this section for a new center for independent living, the Administrator—

(1) In general If there is no center for independent living serving a region of the State or a region is underserved, and the increase in the allotment of the State is sufficient to support an additional center for independent living in the State, the Administrator may award a grant under this section to the most qualified applicant proposing to serve such region. The Administrator’s determination of the most qualified applicant shall be consistent with the provisions in the State plan setting forth the design of the State for establishing a statewide network of centers for independent living.

In selecting from among applicants for a grant under this section for a new center for independent living, the Administrator—

(A) shall consider comments regarding the application— (i) by individuals with disabilities and other interested parties within the new region proposed to be served; and (ii) if any, by the Statewide Independent Living Council in the State in which the applicant is located;

(B) shall consider the ability of each such applicant to operate a center for independent living based on— (i) evidence of the need for such a center; (ii) any past performance of such applicant in providing services comparable to independent living services; (iii) the plan for satisfying or demonstrated success in satisfying the standards and the assurances set forth in section 796f–4 of this title; (iv) the quality of key personnel and the involvement of individuals with significant disabilities; (v) budgets and cost-effectiveness; (vi) an evaluation plan; and (vii) the ability of such applicant to carry out the plans; and

(C) shall give priority to applications from applicants proposing to serve geographic areas within each State that are currently unserved or underserved by independent living programs, consistent with the provisions of the State plan submitted under section 796c of this title regarding establishment of a statewide network of centers for independent living.

(3) Current centers Notwithstanding paragraphs (1) and (2), a center for independent living that receives assistance under subpart 2 for a fiscal year shall be eligible for a grant for the subsequent fiscal year under this subsection.

The Administrator shall be guided by the following order of priorities in allocating funds among centers for independent living within a State, to the extent funds are available:

(1) The Administrator shall support existing centers for independent living, as described in subsection (c), that comply with the standards and assurances set forth in section 796f–4 of this title, at the level of funding for the previous year.

(2) The Administrator shall provide for a cost-of-living increase for such existing centers for independent living.

(3) The Administrator shall fund new centers for independent living, as described in subsection (d), that comply with the standards and assurances set forth in section 796f–4 of this title.

A center that provides or manages residential housing after October 1, 1994, shall not be considered to be an eligible agency under this section.

The Administrator shall periodically review each center receiving funds under this section to determine whether such center is in compliance with the standards and assurances set forth in section 796f–4 of this title. If the Administrator determines that any center receiving funds under this section is not in compliance with the standards and assurances set forth in section 796f–4 of this title, the Administrator shall immediately notify such center that it is out of compliance.

(1) In general The Administrator shall periodically review each center receiving funds under this section to determine whether such center is in compliance with the standards and assurances set forth in section 796f–4 of this title. If the Administrator determines that any center receiving funds under this section is not in compliance with the standards and assurances set forth in section 796f–4 of this title, the Administrator shall immediately notify such center that it is out of compliance.

(2) Enforcement The Administrator shall terminate all funds under this section to such center 90 days after the date of such notification unless the center submits a plan to achieve compliance within 90 days of such notification and such plan is approved by the Administrator.

(Pub. L. 93–112, title VII, § 722, as added Pub. L. 105–220, title IV, § 410, Aug. 7, 1998, 112 Stat. 1229; amended Pub. L. 113–128, title IV, § 482(a), July 22, 2014, 128 Stat. 1692.)