(a) Authority to award grants.--Under applicable provisions of the State plan, the director of the designated State agency shall, with the approval of the council, designate agencies within this Commonwealth eligible to receive funds allotted by the Commonwealth for establishment of centers for independent living.

(b) Eligible agencies.--The director of the designated State agency may, with the approval of the council, make a grant under this section to any designated eligible agency that:

(c) Existing eligible agencies.--In the administration of the provisions of this section, the designated State agency shall award grants to any eligible agency that received funds for establishment of a center for independent living on June 30, 1992, unless the director finds that the agency fails to comply with sections 10 and 11.

(d) Minimum annual allocation.--Subject to the availability of appropriations, the minimum annual allocation for each center for independent living shall be $200,000 in Federal and State funds. Priority for distribution of State funds shall be as follows:

(e) New centers for independent living.--If the council determines that there is no center for independent living serving a geographic region of this Commonwealth or a region is underserved and the State appropriation for the year is sufficient to support an additional center for independent living within this Commonwealth, the director may award a grant under this section to the most qualified applicant, consistent with provisions in the State plan relating to establishment of a Statewide network of centers for independent living.