Within an area plan, the determination of eligibility of older individuals to benefit from community aging services shall be as follows:

(1) For congregate activities, the determination shall be left to the area agency on aging, taking into account (a) the needs, resources, and standards of communities and older individuals in the area and (b) the recommendations of the area advisory council; and

(2) For individual services, the determination shall be by (a) an assessment of an individual's or family's circumstances and (b) the development of a service plan.