Stable Homes Act

This legislation establishes a pilot program under the Secretary of Housing and Urban Development, authorizing grants to units of general local government. The purpose of these grants is to fund the establishment or expansion of pre-filing eviction diversion programs , which are designed to resolve disputes between landlords and tenants before formal eviction proceedings are initiated. The pilot program is slated to run until December 31, 2030, with an annual appropriation of $300,000,000 authorized for fiscal years 2026 through 2030. Eviction diversion programs funded by this bill must include several key attributes to protect tenants. These include a requirement for landlords to provide written notice to tenants about their right to participate and to engage in good faith for at least 30 days before filing for eviction. The programs must offer various dispute resolution services, such as direct rental assistance or connection to it mediation services assigning a housing counselor , and allow an exception for evictions involving an imminent threat of physical harm. Crucially, tenants can assert landlord noncompliance as a defense in court and receive free legal counsel if their income is at or below 200 percent of the Federal poverty line. The Secretary is also empowered to provide technical assistance to grant recipients, including issuing model forms to standardize landlord notices. Grant recipients are required to submit annual reports detailing program cases, costs, demographics, and legal representation, which the Secretary will then summarize for Congress. Additionally, the Inspector General of HUD will conduct assessments of the program's implementation to ensure its fair and legitimate use.