Applications for hospital and medical facilities construction projects for which federal funds are requested shall be submitted to the Board and may be submitted by the State or any political subdivision thereof or by any public or other nonprofit agency authorized to construct and operate a hospital or a medical facility, provided that no application for a diagnostic or treatment center shall be approved unless the applicant is (1) a State, political subdivision, or public agency, or (2) a corporation or association which owns and operates a nonprofit hospital. Each application for a construction project shall conform to federal and State requirements. (Amended 1959, No. 329 (Adj. Sess.), § 27, eff. March 1, 1961.)