; or (B) a State home recognized and certified under subpart B of part 51 of title 38, Code of Federal Regulations, or successor regulations. (2) Standards The Secretary may not place, transfer, or admit a veteran to any facility for assisted living services under the pilot program under subsection (a)(1) unless the Secretary determines that— (A) the facility meets the standards for community residential care established under sections 17.61 through 17.72 of title 38, Code of Federal Regulations, or successor regulations, and any additional standards of care as the Secretary may specify; or (B) in the case of a facility that is a State home, the State home meets such standards of care as the Secretary may specify. (3) Inspection The Secretary shall inspect facilities at which veterans are placed under the pilot program under subsection (a)(1)— (A) with respect to a facility that is a State home, not less frequently than annually and in the same manner as the Secretary conducts inspection of State homes under section 1742 of title 38, United States Code; and (B) with respect to any other facility, not less frequently than annually and in the same manner as the Secretary conducts inspection of facilities under section 1730 of such title. (4) Payment to certain facilities (A) State homes In the case of a facility participating in the pilot program under subsection (a)(1) that is a State home, the Secretary shall pay to the State home a per diem for each veteran participating in the pilot program at a rate agreed to by the Secretary and the State home. (B) Community assisted living facilities In the case of a facility participating in the pilot program under subsection (a)(1) that is a community assisted living facility, the Secretary shall— (i) pay to the facility an amount that is less than the average rate paid by the Department for placement in a community nursing home in the same Veterans Integrated Service Network