A bill to amend sections 235 and 236 of the National Housing Act to require local governmental approval of certain projects as a condition of interest reduction payments (or mortgage insurance) with respect to such projects.

Requires local governmental approval of low-income housing, apartment, or cooperative apartment developments under the National Housing Act before any Federal assistance payments are made.

Provides that any unit of local government may waive its right of approval under this Act or may elect to delegate its approval function to one of its agencies. (Amends 12 U.S.C. 17152, 17152-1)