SEC-807 -- NOTICE OF REJECTION. 

 
 Section 202(k) of the Housing Act of 1959 (12 U.S.C. 1701q(k)) is
amended by adding at the end the following:
 
 "(3) In considering applications for assistance under section 202, the
Secretary shall not reject an application on technical grounds without
giving notice of that rejection and the basis therefor to the applicant
and affording the applicant an opportunity to respond.".