The Secretary of Housing and Urban Development, in processing applications for assistance under section 103 of the Housing Act of 1949 [
42 U.S.C.
1453], section 111 of the Demonstration Cities and Metropolitan Development Act of 1966 [
42 U.S.C.
3311], section 708(a)(1) and (2) of the Housing and Urban Development Act of 1965 [
42 U.S.C.
3108
(a)(1), (
2)] (for grants authorized under sections 702 and 703 of such Act) [
42 U.S.C.
3102,
3103], section 312 of the Housing Act of 1964 [
42 U.S.C.
1452b], section 701(b) of the Housing Act of 1954, and section 708 of the Housing Act of 1961 [
42 U.S.C.
1500d], shall give a priority to any State or unit of local government or agency thereof which is severely and adversely affected by a reduction in the level of expenditure or employment at any Department of Defense installation located in or near such State or unit of local government.