; (ii) not fewer than two such facilities serve veterans in rural or highly rural areas (as determined through the use of the Rural-Urban Commuting Areas coding system of the Department of Agriculture); (iii) not fewer than one such facility is located in each Veterans Integrated Service Network selected under paragraph (1); and (iv) not fewer than two such facilities are State homes. (c) Provision of assisted living services (1) Agreements In carrying out the pilot program under subsection (a)(1), the Secretary may enter into agreements for the provision of assisted living services on behalf of eligible veterans with— (A) a provider participating under a State plan or waiver under title XIX of the Social Security Act ( 42 U.S.C. 1396 et seq. ); 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