ST. PETERSBURG - The St. Petersburg Housing Authority unveiled a $17 million proposal Thursday to make over the city's largest public housing complex, sharply reducing the number of housing units for the area's poorest residents.

The Graham-Rogall complex near Tropicana Field has 486 public housing units. The new complex would have 155, of which only 25 units would be reserved for public housing residents. The other units could be used by public housing residents or low-income residents who earn too much to qualify for public housing, but still meet federal affordable housing requirements.

The proposal, presented to the City Council on Thursday by executive director Darrell Irions, calls for the 336-unit Graham structure, built in 1971, to be demolished. A 50-unit structure would be built on the site. Of those, 25 units would be earmarked for public housing residents. The other 25 could be occupied by families who qualify under an income-based formula.

The Rogall building, built in 1978, would undergo a $14.4 million renovation. The building's 150 units would be reduced to 105 larger apartments.

The proposed two-story complex would also have new amenities, such as a pool.

The Housing Authority would seek federal housing funds to pay for the project.

A handful of City Council members praised the effort Thursday. Deputy Mayor Goliath Davis also applauded the effort.

Council member Wengay Newton said no one should have to live in the run-down complex.

"Keep doing what you are doing," said Newton. "There are going to be people who are going to talk about you, but they talk about Jesus Christ."

The future of the Graham-Rogall complex has been uncertain since the Housing Authority announced its intent to sell the aging development in 2004. To prepare for the sale, the Housing Authority began moving residents out in 2007, but the sale fell through earlier this year when the proposed buyer concluded the $10 million price tag was too steep.

The Housing Authority said it would cost $22.3 million to fix the building in 2007, but a St. Petersburg Times analysis found the estimate may be inflated. A 2003 Housing Authority report said it would take $6.3 million to modernize the property.

Public housing officials across the country have been moving toward smaller public housing structures in recent years to integrate low-income residents with other renters and property owners.