calculating and adjusting ceiling rents.
(e) Information for families. For the family to make an informed choice about its rent options, the PHA must provide sufficient information for an informed choice. Such information must include at least the following written information:
(1) The PHA's policies on switching type of rent in circumstances of financial hardship, and
(2) The dollar amounts of tenant rent for the family under each option, following the procedures in paragraph (f) of this section.
(f) Choice between flat and income-based rents. Families must be offered the choice between a flat rental amount and a previously calculated income-based rent according to the following:
(1) For a family that chooses the flat rent option, the PHA must conduct a reexamination of family income and composition at least once every three years, except for families a PHA determines exceed the over-income limit described in § 960.507(b). Once a PHA determines that a family has an income exceeding the over-income limit, the PHA must follow the income examination and notification requirements under § 960.507(c).
(2) At initial occupancy, or in any year in which a participating family is paying the income-based rent, the PHA must:
(i) Conduct a full examination of family income and composition, following the provisions in § 960.257;
(ii) Inform the family of the flat rental amount and the income-based rental amount determined by the examination of family income and composition;
(iii) Inform the family of the PHA's policies on switching rent types in circumstances of financial hardship; and
(iv) Apply the family's rent decision at the next lease renewal.
(3) In any year in which a family chooses the flat rent option but the PHA chooses not to conduct a full examination of family income