Section 54. Upon receipt of an application under the provisions of section fifty-three the department shall examine such application and any facts, estimates or other information relative thereto, and shall determine whether the proposed project complies with the provisions of the general laws and with rules and regulations prescribed in accordance therewith governing the approval and administration of urban renewal assistance grants or urban revitalization and development grants. Upon the determination of satisfactory compliance, the department shall determine the estimated approved cost of such project, and compute the amount of the urban renewal assistance grant or urban revitalization and development grant to which the city or town would be entitled under section fifty-five.

Within a reasonable time after receipt of such application, the department shall notify such city or town of its approval or rejection thereof, and, in the event of its rejection, of the reasons therefor. If the department rejects such application, the city or town may elect to proceed with such project without the benefit of said urban renewal assistance grant or urban revitalization and development grant. Notice of approval hereunder shall be accompanied by a statement of the estimated approved cost as determined by the department and an estimate of the amount of urban renewal assistance grant or urban revitalization and development grant to which such city or town may be entitled under the provisions of section fifty-five.

The final approved cost shall be determined by the department within a reasonable time after the completion of the urban renewal project by the urban renewal agency.

If the determination of the final approved cost is delayed because the project is not completed, the payments preceding determination of the final approved cost may be based upon the estimated approved cost, and adjustments shall be made in the payment or payments which are made subsequent to the determination of the final approved cost.