No housing project site shall be approved by the department before the department has received advice thereon from the planning commission, or if no planning commission shall exist, the governing body of the political subdivision in which the proposed site is located: Provided, however, That if such advice is not received from such local agency within a reasonable time, as defined by the department, local approval shall be assumed.

All proposed housing project plans shall conform to the requirements of local zoning ordinances if any such have been adopted.

Sites for proposed housing projects may be optioned by the department or may be acquired by gift or purchase either by negotiation or through exercise of its power of eminent domain. Such option or title to a proposed site may be transferred by the department or its duly authorized agents to the agency, authority, corporation or firm with which the department contracts for the building and operation of a housing project and may constitute part or all of the Commonwealth's subsidy of the project.