(i) A resident is not eligible for assistance if and so long as the home is obligated to provide for all his needs and the home is able to fulfill its obligation. If it is determined that the home is unable to fulfill its obligation to the resident, this obligation may, with the approval of the department, be considered to be suspended while the home's inability continues. In such instances, as well as in instances where the home's obligation has terminated, as when a contract has been fully performed by the home or has been terminated by agreement of the parties, determination of eligibility shall be made as for any other applicant. This shall include determination as to whether or not resources assigned, donated or contributed to the home have been exhausted for the maintenance of the applicant prior to his application for public assistance.

(ii) For the applicant resident in a home on the basis of a non-life care contract, resources deposited with the institution shall be investigated to determine to what extent they have been used to meet the cost of his care and to provide burial reserve. Until the resources exclusive of burial reserve have been exhausted on this basis, there is no eligibility for public assistance while the applicant is a resident of the home, except when his contract with the home is considered suspended. If the applicant had such an arrangement but has left the institution, there shall be a determination as to any unused resources and their availability to him.