If subsidy funds are available, the local office, upon receipt of an application for a subsidy, shall: Arrange for a functional assessment of the applicant; and Determine if the applicant is functionally and financially eligible to receive a subsidy. The local office shall award a subsidy on behalf of an applicant when subsidy funds are available and the applicant has been determined to be eligible to receive a subsidy according to the requirements of Regulation .05 of this chapter. When a subsidy is awarded, the local office shall annually redetermine each subsidized resident's eligibility to receive a subsidy. If the local office determines that an applicant or a subsidized resident is ineligible for a Program subsidy, the local office shall notify the applicant in writing of the determination. The notice shall include the: Decision; Reason for denial; Specific regulation supporting the denial; Applicant's right to appeal the decision; and Method for obtaining a hearing. Appeal of Decision. An individual whose application is denied may appeal the determination of ineligibility to the Department in accordance with COMAR 32.01.01. The local office shall provide an individual who wishes to appeal a decision the required forms and a list of resources in the community available to assist the individual. If subsidy funds are not available, the local office shall maintain a waiting list of interested applicants with names listed in chronological order according to the date on which the application was received.