A bill to amend the U.S. Housing Act of 1937 to improve the financial condition of low-rent housing projects by establishing a more realistic formula for the determination of rentals, and for other purposes.

Provides that the rental for any dwelling in a low-rent housing project which is occupied by a family receiving welfare assistance from a public agency shall not exceed the greater of one-fourth of the family's income or the maximum amount of welfare assistance which the family could be eligible to receive from that agency for the specific purpose of assisting the family in meeting its housing expenses. Sets forth the means of determining family income for purposes of this Act.

States that in no case shall the rental be less than an amount equivalent to 40 percent of that part of the cost of operating and maintaining the project which is attributable to the dwelling unit.

Prohibits the Secretary of Housing and Urban Development from making annual contributions to a public housing agency for the operation of low-rent housing projects in any year unless the aggregate rentals collected for such year from families residing in the dwelling units administered by that agency are not less than an amount equal too15u5th of the sum of the incomes of all such families. (Amends 42 U.S.C. 1402(1))