SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Jesse Gray Housing Act''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
            (1) the number of rental dwelling units available for lower 
        income families is insufficient, and the physical condition of 
        a substantial portion of such dwelling units is inadequate;
            (2) Federal housing assistance programs, such as rent 
        subsidies, vouchers, and other rental and mortgage assistance, 
        too frequently assist middle and higher income families and do 
        not meet the demand for housing by lower income families;
            (3) such Federal housing assistance programs are not cost-
        effective, due to a lack of suitable rental dwelling units 
        available for lower income families; and
            (4) a significant number of families are paying more than 
        25 percent of their monthly income for rent.
    (b) Purposes.--The purposes of this Act are--
            (1) to ensure that all families in the United States have 
        access to rental dwelling units at rents that are not more than 
        25 percent of their monthly income, and that such rental 
        dwelling units are decent, safe, and sanitary;
            (2) to ensure that all funds for housing assistance by the 
        Federal Government benefit lower income families by requiring 
        the Secretary of Housing and Urban Development to propose that 
        Federal housing assistance be limited to lower income families; 
        and
            (3) to encourage the establishment of a public housing 
        system that consists of--
                    (A) projects located throughout metropolitan and 
                rural areas;
                    (B) low-density projects, to the extent 
                practicable; and
                    (C) dwelling units that are visually 
                indistinguishable from comparable privately owned 
                dwelling units.

SEC. 3. CONSTRUCTION OF PUBLIC HOUSING.

    Section 5 of the United States Housing Act of 1937 (42 U.S.C. 
1437c) is amended by adding at the end the following new subsection:
    ``(m)(1) The Secretary shall carry out a program for the 
construction of 500,000 new dwelling units in public housing during 
each of the fiscal years 1998 through 2007.
    ``(2) There are authorized to be appropriated to carry out this 
subsection such sums as may be necessary for each of the fiscal years 
1998 through 2007. Any amount appropriated under this paragraph shall 
remain available until expended.''.

SEC. 4. REVITALIZATION OF PUBLIC HOUSING.

    Section 14(b) of the United States Housing Act of 1937 (42 U.S.C. 
1437l(b)) is amended by adding at the end the following new paragraph:
    ``(3)(A) To the extent approved in appropriation Acts and subject 
to subparagraph (B), the Secretary shall make available and contract to 
make available financial assistance under this subsection, in addition 
to financial assistance made available under paragraphs (1) and (2). In 
making assistance available under this paragraph, the Secretary shall 
give particular preference to public housing agencies requesting such 
assistance for public housing projects that the Secretary determines 
would likely have been subject to demolition or disposition under 
section 18, as such section was in effect before the date of the 
enactment of the Jesse Gray Housing Act.
    ``(B) For purposes of this paragraph, the aggregate amount of 
budget authority that may be obligated for contracts for annual 
contributions is increased on October 1 of each of the years 1997 
through 2006 by the amount necessary to provide for the revitalization 
of 100,000 dwelling units in public housing during each of the fiscal 
years 1998 through 2007, respectively.''.

SEC. 5. PROHIBITION OF DEMOLITION AND DISPOSITION OF PUBLIC HOUSING.

    (a) In General.--Section 18(a) of the United States Housing Act of 
1937 (42 U.S.C. 1437p(a)) is amended by striking ``The Secretary'' and 
all that follows and inserting the following: ``The Secretary may not 
authorize any public housing agency to demolish or dispose of any 
public housing project or any portion of a public housing project.''.
    (b) Conforming Amendments.--Section 18 of the United States Housing 
Act of 1937 is amended--
            (1) by striking subsections (b), (c), (e), and (f);
            (2) in subsection (d), by striking ``without obtaining the 
        approval of the Secretary and satisfying the conditions 
        specified in subsections (a) and (b)''; and
            (3) by redesignating subsections (d) and (g) as subsections 
        (b) and (c), respectively.

SEC. 6. TENANT RENT CONTRIBUTIONS.

    (a) Lower Income Housing Under the United States Housing Act of 
1937.--The United States Housing Act of 1937 is amended--
            (1) in section 3(a)(1)(A) (42 U.S.C. 1437a(a)(1)(A)), by 
        striking ``30'' and inserting ``25'';
            (2) in section 8(o) (42 U.S.C. 1437f(o)), by striking 
        ``30'' each place it appears and inserting ``25'';
            (3) in section 8(u)(2) (42 U.S.C. 1437f(u)(2)), by striking 
        ``30'' and inserting ``25'';
            (4) in section 8(y)(2)(A) (42 U.S.C. 1437f(y)(2)(A)), by 
        striking ``30'' and inserting ``25'';
            (5) in section 16(d)(1) (42 U.S.C. 1437n(d)(1)), by 
        striking ``30'' and inserting ``25'';
            (6) in section 23(d) (42 U.S.C. 1437u(d)), by striking 
        ``30'' each place it appears and inserting ``25''; and
            (7) in section 304(b) (42 U.S.C. 1437aaa-3(b)), by striking 
        ``30'' and inserting ``25''.
    (b) Public Housing Mixed Income New Communities Strategy 
Demonstration.--Section 521(e)(4) of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 1437f note) is amended by striking 
``30'' and inserting ``25''.
    (c) Supportive Housing for the Elderly.--Section 202(c)(3) of the 
Housing Act of 1959 (12 U.S.C. 1701q(c)(3)) is amended by striking 
``30'' and inserting ``25''.
    (d) Supportive Housing for Persons With Disabilities.--Section 
811(d)(3) of the Cranston-Gonzalez National Affordable Housing Act (42 
U.S.C. 8013(d)(3)) is amended by striking ``30'' and inserting ``25''.
    (e) HOME Program.--Section 215(a) of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12745(a)) is amended by striking 
``30'' each place it appears and inserting ``25''.
    (f) Rent Supplements.--Section 101(d) of the Housing and Urban 
Development Act of 1965 (12 U.S.C. 1701s(d)) is amended by striking 
``30'' and inserting ``25''.
    (g) Rental and Cooperative Housing for Lower Income Families.--
Section 236(f) of the National Housing Act (12 U.S.C. 1715z-1(f)) is 
amended--
            (1) in paragraphs (1), (2), and (5)(A)(i), by striking 
        ``30'' each place it appears and inserting ``25''; and
            (2) in paragraph (1)(ii), by striking ``25'' and inserting 
        ``20''.
    (h) Multifamily Property Disposition.--Section 203 of the Housing 
and Community Development Amendments of 1978 (12 U.S.C. 1701z-11) is 
amended by striking ``30'' each place it appears in subsections (b)(5) 
and (g) and inserting ``25''.
    (i) Transitional Provisions.--Section 206(d)(6) of the Housing and 
Urban-Rural Recovery Act of 1983 (42 U.S.C. 1437a note) is amended by 
striking ``30'' and inserting ``25''.
    (j) Low-Income Housing Preservation and Resident Homeownership Act 
of 1990.--The Low-Income Housing Preservation and Resident 
Homeownership Act of 1990 is amended--
            (1) in section 218(a)(1)(A) (12 U.S.C. 4108(a)(1)(A)), by 
        striking ``30'' and inserting ``25''; and
            (2) in subparagraphs (D) and (E)(iii) of section 222(a)(2) 
        (12 U.S.C. 4112(a)(2)), by striking ``30'' each place it 
        appears and inserting ``25''.
    (k) State Preservation Project Assistance.--Section 613(b)(2) of 
the Cranston-Gonzalez National Affordable Housing Act (12 U.S.C. 
4125(b)(2)) is amended by striking ``30'' and inserting ``25''.
    (l) Preserving Existing Housing Investment.--The item relating to 
``Housing Programs--preserving existing housing investment'' in title 
II of the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1997 (12 
U.S.C. 4101 note) is amended by striking ``30'' and inserting ``25''.
    (m) Emergency Low Income Housing Preservation Act of 1987.--In 
carrying out the provisions of the Emergency Low Income Housing 
Preservation Act of 1987 (12 U.S.C. 1715l note) pursuant to section 604 
of the Cranston-Gonzalez National Affordable Housing Act, each 
reference in such provisions to 30 percent of adjusted income shall be 
considered to refer to 25 percent of adjusted income.
    (n) HOPE Homeownership Programs.--Sections 424(b) and 444(b) of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12874(b), 
12894(b)) are each amended by striking ``30'' and inserting ``25''.
    (o) Native American Housing Assistance.--Section 203(a)(2) of the 
Native American Housing Assistance and Self-Determination Act of 1996 
(25 U.S.C. 4133(a)(2)) is amended by striking ``30'' and inserting 
``25''.
    (p) FHA-Insured Assisted Housing.--Section 221 of the National 
Housing Act (12 U.S.C. 1715l) is amended by striking ``30'' and 
inserting ``25'' in each of the following provisions:
            (1) Subparagraph (A) of the last undesignated paragraph of 
        subsection (f).
            (2) Subsection (l)(1).
    (q) Affordable Housing Goals for Federal Housing Enterprises.--
Sections 1332(c)(2) and 1333(c)(2) of the Housing and Community 
Development Act of 1992 (12 U.S.C. 4562(c)(2), 4563(c)(2)) are each 
amended by striking ``30'' and inserting ``15''.
    (r) Rural Housing for Lower Income Families.--The Housing Act of 
1949 (42 U.S.C. 1471 et seq.) is amended by striking ``30'' and 
inserting ``25'' each place it appears in each of the following 
sections:
            (1) Section 521(a).
            (2) Section 530.
            (3) Section 542(a).
    (s) Federal Home Loan Bank Act.--The Federal Home Loan Bank Act is 
amended by striking ``30'' and inserting ``25'' in each of the 
following sections:
            (1) Section 10(j)(13)(D) (12 U.S.C. 140(j)(13)(D)).
            (2) Section 21A(c) (12 U.S.C. 1441a(c))--
                    (A) in paragraph (4)(A); and
                    (B) in paragraph (14)(G).
    (t) Federal Deposit Insurance Act.--Section 40 of the Federal 
Deposit Insurance Act (12 U.S.C. 1831q) is amended by striking ``30'' 
and inserting ``25'' in each of the following subsections:
            (1) Subsection (e)(1).
            (2) Subsection (n)(7).
    (u) Community Development Block Grants.--Section 
104(d)(2)(A)(iii)(I) of the Housing and Community Development Act of 
1974 (42 U.S.C. 5304(d)(2)(A)(iii)(I)) is amended by striking ``30'' 
and inserting ``25''.
    (v) New Towns Emergency Relief Demonstration.--Sections 1103(c)(4) 
and 1106(d)(1)(A)(iii)(I) of the Housing and Community Development Act 
of 1992 (42 U.S.C. 5318 note) are each amended by striking ``30'' and 
inserting ``25''.
    (w) Exclusion of Certain Income.--Notwithstanding any other 
provision of law, for purposes of determining the monthly contribution 
to be made by a family under the provisions amended by this section, 
the adjusted income of a family shall exclude any income attributable 
to any cost-of-living adjustment made after the effective date of this 
section in--
            (1) any welfare assistance received by such family from a 
        public agency; or
            (2) any benefits received by such family under the Social 
        Security Act.
    (x) Effective Date.--The provisions of, and amendments made by, 
this section shall take effect on October 1, 1997.

SEC. 7. REPORT REGARDING FEDERAL HOUSING ASSISTANCE.

    The Secretary of Housing and Urban Development, following 
consultation with public housing agencies, shall prepare and submit to 
the Congress a comprehensive report setting forth a proposal to limit 
Federal housing assistance to assistance for public housing in order to 
ensure that all funds for housing assistance provided by the Federal 
Government benefit lower income families.
Output: Jesse Gray Housing Act - Amends the United States Housing Act of 1937 to direct the Secretary of Housing and Urban Development to carry out a program to construct new public housing units.  Authorizes appropriations. 
Requires the Secretary to make financial assistance available for public housing projects, especially those likely to be disposed of or demolished. 
Prohibits the Secretary from approving a project demolition application. 
Reduces lower-income rent contribution and related amounts under: (1) the United States Housing Act of 1937; (2) the Cranston-Gonzalez National Affordable Housing Act; (3) the Housing Act of 1959; (4) the Housing and Urban Development Act of 1965; (5) the National Housing Act; (6) the Housing and Community Development Amendments of 1978; (7) the Housing and Urban-Rural Recovery Act of 1983; (8) the Low-Income Housing Preservation and Resident Homeownership Act of 1990; (9) the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997, (10) the Native American Housing Assistance and Self-Determination Act of 1996; (11) the Housing and Community Development Act of 1992; (12) the Housing Act of 1949; (13) the Federal Home Loan Bank Act; (14) the Federal Deposit Insurance Act; (15) the Housing and Community Development Act of 1974; and (16) the Housing and Community Development Act of 1992. Excludes welfare or social security cost-of-living adjustments from such adjusted income determinations. 
Directs the Secretary to prepare a Federal housing assistance report.