and composition for the annual rent option under the authority of paragraph (f)(1) of this section, the PHA must:
(i) Use income information from the examination of family income and composition from the first annual rent option;
(ii) Inform the family of the updated flat rental amount and the rental amount determined by the most recent 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.
(g) Switch from flat rent to income-based rent because of hardship. (1) A family that is paying a flat rent may at any time request a switch to payment of income-based rent (before the next annual option to select the type of rent) if the family is unable to pay flat rent because of financial hardship. The PHA must adopt written policies for determining when payment of flat rent is a financial hardship for the family.
(2) If the PHA determines that the family is unable to pay the flat rent because of financial hardship, the PHA must immediately allow the requested switch to income-based rent. The PHA shall make the determination within a reasonable time after the family request.
(3) The PHA policies for determining when payment of flat rent is a financial hardship must provide that financial hardship include the following situations:
(i) The family has experienced a decrease in income because of changed circumstances, including loss or reduction of employment, death in the family, or reduction in or loss of earnings or other assistance;
(ii) The family has experienced an increase in expenses, because of changed circumstances, for medical costs, child care, transportation, education, or similar items; and
(iii) Such