E.
Flat Rents and Family Choice in Rents [24 CFR 960.253] 1)
Flat Rents [24 CFR 960.253(b)] The flat rent is designed to encourage self-sufficiency and to avoid creating disincentives for continued residency by families who are attempting to become economically self-sufficient. There is no utility allowance or reimbursement with flat rents. When the family elects to pay the flat rent, the flat rent amount quoted to the family by the SFHA is the amount the family pays. Changes in family income, expenses, or composition will not affect the flat rent amount because it is outside the income-based formula.
2)
Family Choice in Rents [24 CFR 960.253(a) and (e)] Once each year, the SFHA must offer families the choice between a flat rent and an income-based rent. The family may not be offered this choice more than once a year. The SFHA must document that flat rents were offered to families under the methods used to determine flat rents for the SFHA. The annual SFHA offer to a family of the choice between flat and income-based rent will be conducted upon admission and upon each subsequent annual reexamination. The SFHA will require families to submit their choice of flat or income-based rent in writing and will maintain such requests in the tenant file as part of the admission or annual reexamination process. The SFHA must provide sufficient information for families to make an informed choice. This information must include the SFHA‘s policy on switching from flat rent to income-based rent due to financial hardship and the dollar amount of the rent under each option. However, if the family chose the flat rent for the previous year the SFHA is required to provide an income-based rent amount only in the year that a reexamination of income is conducted or if the family specifically requests it and submits updated income information.
3)
Switching from Flat Rent to Income-Based Rent Due to Hardship [24 CFR 960.253(f)] A family can opt to switch from flat rent to income-based rent at any time if they are unable to pay the flat rent due to financial hardship. If the SFHA determines that a financial hardship exists, the SFHA must immediately allow the family to switch from flat rent to the income-based rent. Upon determination by the SFHA that a financial hardship exists, the SFHA will allow a family to switch from flat rent to income-based rent effective the first of the month following the family‘s request.
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