A bill to amend the Housing and Urban Development Act of 1968 to require a public notice and public hearing concerning any application, with certain findings, involving interest reduction payments (or mortgage insurance) with respect to such project, as applied to sections 235 and 236, and for other purposes.

Requires a public notice, at least ten days in advance, to be posted in the local post office of a time and place where a public hearing is to be held concerning any application involving interest reduction payments or mortgage insurance with respect to cooperative housing projects for lower income families pursuant to the Housing and Urban Development Act of 1968.

Provides that, before approval of any such application is made, the following findings must be made: (1) that such a project shall not unduly burden the local schools by causing an influx of additional students; (2) that the location of the project would not be likely to adversely affect local property values; (3) that local utilities where the project would be located would be adequate; (4) that the project would not significantly affect the nature and progress of local community developments; and (5) that such a project has been approved by the governing body of the locality where such a project is to be located.