A bill to authorize the use of community development funds with respect to the construction of certain public hospitals located in nonmetropolitan areas.

Amends the Housing and Community Development Act of 1974 to include as an activity which may be conducted as part of a Community Development Program the construction of a publicly owned and operated medical facility in a nonmetropolitan area if: (1) other Federal assistance is available; and (2) the Secretary of Housing and Urban Development has received a certification that there is a need for such facility and that there are minimum standards for the licensure and operation of medical facilities in the area of construction.