The secretary shall afford to every applicant for federal funds or loans for a medical facility project under Kan. Stat. Ann. § 65-420, and any amendments thereto, an opportunity for a fair hearing in accordance with the provisions of the Kansas administrative procedure act. If the secretary, after affording reasonable opportunity for development and presentation of applications in the order of relative need, finds that a project application complies with the requirements of Kan. Stat. Ann. §§ 65-420 and any amendments thereto, and is otherwise in conformity with the state plan, the secretary shall approve such application and shall forward the application to the federal secretary of health, education and welfare along with such recommendation.