To be eligible to apply for a grant assistance payment under this part, an individual must meet the following qualifications:
(1) The individual must have resided or be residing, after June 30, 1992, in a facility licensed by the state as a nursing home. Residents in facilities certified as intermediate care facilities for the mentally retarded are not eligible; and
(2) For each day for which grant assistance is sought, the individual's nursing home care must not have been paid for, in whole or in part, by a federal, state or combined federal-state medical care program.