(p) Notwithstanding this chapter to the contrary, to dispose of or demolish any part or all of an existing housing project assisted by the commonwealth pursuant to chapter 689 of the acts of 1974, chapter 167 of the acts of 1987 or chapter 705 of the acts of 1966, if: (1) the department and the housing authority have determined that it is not financially feasible to maintain or to bring the units up to a reasonable program standard for occupancy or permissible to convert the units to another low-rent housing program; (2) the inventory of available housing units remaining in the surrounding community is not substantially diminished as a result of such demolition or other disposition; and (3) for units financed pursuant to chapter 705 of the acts of 1966, the units were vacant for reasons the department has determined not to be the fault of the housing authority for not less than 2 years, or, for units financed by the chapter 689 of the acts of 1974 or chapter 167 of the acts of 1987, the department has received written confirmation from both the department of developmental services and the department of mental health that those units are obsolete and inappropriate for housing their respective clients. Upon approval by the department, the authority may dispose of the property by sale, ground lease or other transfer of its interest in the property; provided, that the department shall review and approve of any appraisal and request for proposals related to the disposition, as well as the selection of the selected bidder. The request for proposals shall provide that, in reviewing responses to the request for proposals, first priority for selecting from among the responsive and responsible bidders shall be those bidders that offer a feasible plan to provide housing on the