concurrence and he is seeking assistance in connection with the termination of such services.

(2) "Counselor" means a client assistance worker who is functioning in the capacity of an ombudsman.

(3) "Project area" means the geographical or administrative area served by project counselors and designed in a manner to facilitate client or client applicant accessibility to the project.

(b) Purpose. Pursuant to the requirements of section 112(a) of the Act, grants may be made under section 112 for the purpose of establishing in no less than 7 nor more than 20 geographically dispersed regions client assistance pilot projects to provide counselors to inform and advise all clients and client applicants in the project area of all available benefits under the Act, and upon request of such clients or client applicants, to assist them in their relationships with the projects, programs, and facilities providing services to them under the Act.

(c) Project awards. Projects may be awarded only to State agencies which shall directly administer such projects.

(d) Matching requirements. No minimum share will be required of grantees.

(e) Allowable costs. Federal assistance may be available for costs specified in § 1362.8 (except for the provision of vocational rehabilitation services) and may also be available for the costs of client or client applicant travel as necessary to achieve project objectives.

(f) Project period. A project may be approved for a period not to exceed 3 years.

(g) Counselor responsibilities. Counselors employed within projects under this section will be responsible for:

(1) Interpreting the vocational rehabilitation services program to clients or client applicants;

(2) Advising clients or client applicants of benefits available to them under such program;

(3) Otherwise assisting such individuals in their relationships with projects, programs, and facilities providing vocational rehabilitation services under the Act; and

(4) Advising State agencies of identified problem areas in the delivery of vocational rehabilitation services to handicapped individuals and suggesting methods and means of improving State agency performance.

(h) Special project considerations. Each grant shall be subject to the condition that the applicant will furnish and comply with assurances that:

(1) No project employee shall be a person who is presently serving as staff, consultant, or receiving benefits of any kind directly or indirectly from any rehabilitation project, program or facility assisted under the Act in the project area, except for individuals receiving traineeships under Subpart E of this part;

(2) The project director shall be afforded reasonable access to policymaking and administrative personnel in State and local rehabilitation agencies, projects and facilities;

(3) All clients or client applicants within the project area shall have the opportunity to receive adequate client assistance services under the project and shall not be pressured against or otherwise discouraged from availing themselves of the client assistance services available under the project;

(4) The State agency shall make maximum effort to enter into cooperative arrangements with institutions of higher education to secure the services of graduate students who are undergoing clinical training in rehabilitation related fields, except that no compensation with funds appropriated under the Act will be provided to such students in connection with their participation in a project under this section; (5) The project shall contain an evaluative component to measure its effectiveness.

(i) Reports. An annual project report shall be submitted by the project staff through the State agency to the Secretary on the operation of the project during the previous year, including a summary of the work done, and a uniform statistical tabulation of all cases handled within the project.

Subpart C-Assistance for Rehabilitation Facilities

§ 1362.50 Project development grants.

(a) Purpose. Under section 301(d) of the Act, grants may be made for the purpose of assisting in meeting the costs of planning the development and construction of a specific rehabilitation facility and the services to be provided by such a rehabilitation facility.

(b) Eligible applicants. Applications may be made by public or other nonprofit agencies, institutions, or organizations which are either operating or are studying the feasibility of operating a rehabilitation facility.

(c) Matching requirements. The Federal share shall not exceed 90 per centum of the total cost of the project.

(d) Federal financial participation. Federal financial participation may be available for costs specified in § 1362.8 and may also be available for

(1) Expenses associated with the use of volunteers; and

(2) Such architectural plannings as is incidental to program planning, but not including working drawings.

(e) Project period. A project may be approved for a project period of not more than 12 months.

§ 1362.51 Grants for construction of rehabilitation facilities.

(a) Purpose. Under section 301(b) of the Act, grants may be made to assist in meeting the costs of construction of public or other nonprofit rehabilitation facilities. Construction of a rehabilitation facility may, where necessary to the effective operation of the facility, include the construction of residential accommodations for use in connection with the rehabilitation of handicapped individuals.

(b) Eligible applicants. Applications may be made by State vocational rehabilitation agencies or other public or nonprofit organizations or agencies which operate or propose to operate a public or other nonprofit rehabilitation facility.

would be applicable in the case of a rehabilitation facility (as defined in section 645(g) of the Public Health Service Act, 42 U.S.C. 291(a)), in the same location.

(d) Federal financial participation. (1) Federal financial participation may be available for

(i) Acquisition of land in connection with construction of a rehabilitation facility;

(ii) Acquisition of existing buildings; (iii) Remodeling, alteration, renovation, or expansion of existing buildings;

(iv) Construction of new buildings; (v) Architect's fees;

(vi) Site survey and soil investigation;

(vii) Fixed or movable equipment; (viii) Works of art in an amount not to exceed 1 per centum of the total cost of the project; and

(ix) Other costs specifically approved in the application.

(2) Federal financial participation will not be available for the costs of offsite improvements or for the construction of any rehabilitation facility which is or will be used for religious worship or any sectarian activity.

(e) Project period. Grants shall be awarded for a project period necessary for the completion of the approved construction project except, however, that any project in which the construction has not begun during the 18month period immediately subsequent to the approval of the application may be terminated at the end of such period by the Commissioner.

(f) Assurances from applicants. (1) In addition to any other requirement imposed under the Act, each grant in which construction is to be performed shall be subject to the condition that the applicant will furnish and comply with the following assurances and all other assurances set forth in the application for such grant:

(i) That, for a period of not less than 20 years after completion of construction of the project, it will be used as a public or other nonprofit rehabilitation facility;

(ii) That the applicant will provide a set of plans and specifications for the proposed project which have been approved by the Architectural and

Transportation Barriers Compliance Board and in which due consideration shall be given to excellence of architecture and design; and

(iii) That the applicant will furnish an annual report and such other progress reports and other information as the Commissioner may require.

(2) The Commissioner may, at any time, approve exceptions to these conditions and assurances where he finds that such exceptions are not inconsistent with the Act and the purposes of the program.

(g) Construction standards and other standards. (1) Approved projects shall be constructed according to minimum standards of construction and equipment for rehabilitation facilities specified by the Commissioner. Applicable State and local codes and regulations must be observed. The Commissioner's standards must be followed where they exceed any State and local codes and regulations.

(2) Approved projects shall meet the requirements of the Occupational Safety and Health Act (Pub. L. 91576); the National Environmental Policy Act of 1969 and Executive Order No. 11514 (34 FR 4247) relative to environmental impact; the "American Standard Specifications for Making Buildings and Facilities Accessible to, and Usable by, the Physically Handicapped," No. A 117.1-1961, as modified by other standards prescribed by the Secretary of Housing and Urban Development (24 CFR Part 40) or the Administrator of General Services (41 CFR 101-17.703); section 106 of Public Law 89-665 relative to the preservation of historic sites; Executive Order No. 11296 (31 FR 10663) relative to the avoidance of flood hazards; the Flood Disaster Protection Act of 1973 (Pub. L. 93-234); Executive Order No. 11288 (31 FR 9261) relative to the prevention, control, and abatement of water pollution; and in the case of State and local agencies, the regulations on relocation assistance and real property acquisition contained in Part 15 of this title.

§ 1362.52 Initial staffing grants.

(a) Purpose. Under section 301(c) of the Act, grants may be made to assist in paying part of the costs of compen

sation of the initial professional and technical staff of any public or nonprofit rehabilitation facility constructed after September 26, 1973.

(b) Eligible applicants. (1) New applications may be made by public or other nonprofit rehabilitation facilities constructed after September 26, 1973. Continuation applications may be made by those public or other nonprofit rehabilitation facilities constructed prior to September 26, 1973, which were recipients of initial staffing grants on September 26, 1973.

(2) Initial staffing grants may be made only with respect to the operation of a rehabilitation facility following construction. Where the rehabilitation facility is in operation prior to construction, an initial staffing grant shall be made only for additional staff which will enable the facility to provide new services or extend existing services to a substantially increased number of clients. Where the construction consists of expansion, remodeling, alteration, or renovation of an existing rehabilitation facility, such expansion, remodeling, alteration, or renovation shall be extensive enough to result in the addition of new services or the extension of existing services to a substantially increased number of handicapped individuals.

(c) Matching requirements. The amount of the Federal share under an initial staffing grant shall be related directly to the date of the commencement of the operation of the rehabilitation facility. The date of commencement of a rehabilitation facility shall be that date on which the first client is admitted for services after the completion of the related construction project or such earlier date after completion of such project as is specified in the approved application for the initial staffing grant. A grant shall not exceed 75 per centum of eligible costs for the period ending with the close of the 15th month following the month in which such operation commenced, 60 per centum of such costs for the first year thereafter, 45 per centum of such costs for the second year thereafter, and 30 per centum of such costs for the third year thereafter.

(d) Federal financial participation. Federal financial participation may be

available for personnel costs (including fringe benefits) of initial staff as set forth in the approved application.

(e) Project period. A project may be approved for a project period not to exceed 4 years and 3 months.

§ 1362.53 Rehabilitation facility improvement grants.

(a) Purpose. Under section 302(c) of the Act, grants may be made for paying part of the costs of projects for rehabilitation facilities, or an organization or combination of such rehabilitation facilities, to analyze, improve, and increase their professional services to handicapped individuals, their management effectiveness or any other part of their capacity to provide employment and services for handicapped individuals.

(b) Eligible applicants. Applications may be made by any public or nonprofit rehabilitation facility, organization or combination of such rehabilitation facilities: In the case of rehabilitation facilities, such facilities must have been in operation for at least 12 months.

(c) Matching requirements. The Federal share of the approved project costs shall not exceed 80 per centum of the total project cost.

(d) Federal financial participation. Federal financial participation may be available for costs specified in § 1362.8 and may also be available for the costs of staff development activities, including educational leave. Personnel employed under the project shall be limited to additional staff.

(e) Project period. A project may be approved for a project period not to exceed 3 years.

Subpart D-Rehabilitation Research

§ 1362.60 General considerations in the administration of rehabilitation research.

(a) Purpose. The primary purpose of all activities supported under this subpart is the development of new knowledge concerning the rehabilitation of handicapped individuals; the evaluation of existing knowledge in new settings; and the utilization of such knowledge in the delivery of vocational rehabilitation services.

(b) Research utilization. Each project approved under this subpart shall contain a plan designed to enhance the prompt utilization of findings of successful research and demonstration projects.

(c) Coordination with related program activities. All activities supported under this part shall be administered in close coordination with similar program activities of the Veterans Administration, National Science Foundation, National Academy of Sciences, National Institutes of Health and other public and private agencies and institutions.

(d) Project period. A project under this subpart may be approved for a project period not to exceed 5 years.

§ 1362.61 Rehabilitation

demonstration.

research and

(a) Purpose. Under section 202(a) of the Act, grants and contracts may be made to pay part of the cost of projects for the purpose of planning and conducting research, demonstrations, and related activities which bear directly on the development of methods, procedures, and devices to assist in the provision of vocational rehabilitation services to handicapped individuals, especially the most severely handicapped individuals.

(b) Scope of activities. Projects supported under this section may include medical and other scientific, technical, methodological, and other investigations into the nature of disability, methods of analyzing disability, ways of ameliorating handicapping conditions, and restorative techniques; studies and analyses of industrial, vocational, social, psychological, economic and other factors affecting the rehabilitation of handicapped individuals; studies of special problems of homebound and institutionalized individuals; studies, analyses and demonstrations of architectural and engineering design adapted to meet the special needs of handicapped individuals; and related activities which hold promise of increasing knowledge and improving methods in the rehabilitation of handicapped individuals especially those with the most severe handicaps.

(c) Eligible applicants. Applications for grants or contracts may be made

(a) Purpose. Under section 202(b)(1) of the Act, grants may be made to pay part or all of the cost of the establishment and ongoing support of rehabilitation research and training centers to be operated in collaboration with institutions of higher education for the purpose of providing coordinated and advanced programs of research in rehabilitation, and training of rehabilitation research personnel, including, but not limited to, graduate training.

(b) Scope of activities. Rehabilitation research and training centers must be located in institutions having a well-recognized continuing coordinated program of scientific research designed to solve complex problems regarding the management of disabling conditions and preparation of handicapped individuals for employment, training of research personnel in fields contributing to the rehabilitation of the physically or mentally disabled, and related activities designed for the dissemination and utilization of new scientific knowledge leading to an improvement in the quality of vocational rehabilitation services for handicapped individuals. Individual search projects within the center will be planned so as to contribute in a sequential way to a coherent centralized body of knowledge. Training of research personnel within each center must be conducted in conjunction with the research activities, including to the greatest degree possible, both client care and the generation of scientific knowledge. Research related activities may include implementation and application of research findings; dissemination of new knowledge,

re

methods and techniques in rehabilitation; research related technical assistance to State and other agencies and rehabilitation facilities; and improvement of skills of rehabilitation practitioners.

(c) Eligible applicants. States and public or nonprofit agencies and organizations, including institutions of higher education or rehabilitation facilities having well-recognized programs of research and associated with institutions of higher education may apply for center grants provided that the center program has a separate organizational identity.

(d) Matching requirements. Grants may be made for paying all or part of the costs of activities conducted under this section. Where part of the costs is to be borne by the grantee, the amount of grantee participation will be determined at the time of the grant award.

(e) Federal financial participation. Federal financial participation may be available for costs specified in § 1362.8 and may also be available for

(1) Stipends for students (including dependency allowances);

(2) Tuition and fees; and (3) Student travel.

Reimbursement of indirect costs will not exceed 15 per centum of the amount allowed for direct costs exclusive of costs for building alterations, permanent equipment, rental of space, contractual agreements, tuition, post doctoral training allowances, and client services and hospital costs.

(f) Special considerations in the support of training. Traineeships awarded under this section shall be subject to the provisions of § 1362.76.

§ 1362.63 Rehabilitation engineering research centers.

(a) Purpose. Pursuant to the requirements of section 201(a)(1) of the Act, grants may be made under section 202(b)(2) to pay part or all of the cost of the establishment and support of rehabilitation engineering research centers to:

(1) Develop innovative methods of applying advanced medical technology, scientific achievement, and psychological and social knowledge to solve rehabilitation problems through