To direct the Secretary of Housing and Urban Development to establish a grant program to award grants to units of general local government to establish or expand eviction diversion programs, and for other purposes.

The Stable Homes Act (H.R. 10103) directs the Department of Housing and Urban Development (HUD) to create a pilot grant program within one year of enactment. The program provides funding to local governments to establish or expand pre-filing eviction diversion programs. Under the bill, HUD is authorized to provide technical assistance to grant recipients, such as creating standardized tenant notification forms. HUD must also collect annual data from local governments, report summary findings to Congress, and have the HUD Inspector General audit the program at least twice before it expires.

* **Local Governments:** Units of general local government are the only entities eligible to apply for and receive these grant funds. * **Tenants:** Tenants in participating localities gain access to eviction diversion services, dispute resolution, housing counseling, and rental assistance. Low-income tenants gain a right to free legal counsel under specific conditions. * **Landlords:** Landlords in areas operating these grant-funded programs must follow mandatory notification and waiting period requirements before filing formal court evictions against participating tenants. * **Federal Agencies:** HUD is responsible for administering the grants, providing technical assistance, and reporting to Congress. The HUD Inspector General is responsible for conducting oversight reviews.

If a local government uses this grant to set up or expand an eviction diversion program, the following rules and services apply: * **Written Notice Requirements:** Landlords must deliver written notice to tenants—both by hand and by mail with proof of mailing—informing them of their right to participate in the diversion program. The notice must explicitly state that participating does not waive the tenant's legal rights (such as going to trial) if diversion fails. * **Mandatory 30-Day Delay:** If a tenant chooses to participate, both the landlord and tenant must participate in good faith for at least 30 days before the landlord can file formal eviction papers in court. * **Support and Dispute Services:** Programs must provide dispute resolution services, including mediation, housing counselor assignments, and direct rental assistance (or connections to rental assistance). * **Free Legal Counsel:** Tenants with incomes at or below 200% of the Federal Poverty Line have a right to free legal counsel before the diversion process begins if their landlord is represented by an attorney. * **Legal Defense for Noncompliance:** If a landlord fails to follow the required program rules, the tenant is allowed to use that failure as a legal defense in court eviction proceedings. * **Reporting Duties:** Participating local governments must submit annual reports to HUD detailing case numbers, average costs, landlord types, tenant demographics, and legal representation rates. HUD must forward a summary of these reports to the House Committee on Financial Services and the Senate Committee on Banking, Housing, and Urban Affairs within three months of receiving them.

* **Authorized Appropriations:** The bill authorizes $300,000,000 for each fiscal year from 2026 through 2030 for HUD to issue grants to local governments. * **Use of Funds:** Local governments must use the money specifically to build or expand pre-filing eviction diversion programs, which include funding dispute resolution, rental assistance support, and free legal representation for eligible low-income tenants.

* **Harm Exception:** Evictions that are necessary to prevent an imminent threat of physical harm are exempt from the requirement to participate in the diversion program. * **Eligibility Restrictions:** Grants are strictly limited to local governments; private organizations and state or federal agencies cannot apply directly for the grants. * **Income Limit for Legal Counsel:** Free legal representation is limited to tenants whose household income is at or below 200% of the Federal Poverty Line, and it only applies if the landlord has legal representation. * **Expiration Date:** The entire pilot program terminates on December 31, 2030.

This bill creates a five-year, $300 million annual grant program run by HUD that pays local governments to set up eviction diversion programs. In communities that use the grant, landlords must notify tenants of the program and attempt a 30-day good-faith resolution process before filing for eviction, while eligible low-income tenants receive access to free legal help, counseling, and potential rental assistance, except in cases involving imminent physical harm.