The Secretary of Housing and Urban Development, in processing applications for assistance under section 103 of the Housing Act of 1949 [42
], section 111 of the Demonstration Cities and Metropolitan Development Act of 1966 [42
], section 708(a)(1) and (2) of the Housing and Urban Development Act of 1965 [42
)] (for grants authorized under sections 702 and 703 of such Act) [42
], section 312 of the Housing Act of 1964 [42
], section 701(b) of the Housing Act of 1954, and section 708 of the Housing Act of 1961 [42
], 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.