Federal grants fund tenant protections: mandatory mediation before eviction
H.R. 10103 — Stable Homes Act · Filed by Mary Scanlon (D-PA) · 5 cosponsors · Introduced Aug 13, 2026 · Referred to committee
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What it does
This bill directs the Department of Housing and Urban Development to establish a five-year pilot program (2026–2030) awarding grants of up to $300 million annually to local governments to create or expand eviction diversion programs. These programs require landlords to notify tenants of their right to participate in mediation, rental assistance, or counseling before filing for eviction, and mandate a 30-day good-faith negotiation period. Tenants earning up to 200% of the federal poverty line get free legal counsel if the landlord is represented by an attorney.
Why we flagged it
The bill's operative mechanism is a mandatory pre-eviction diversion process funded by federal grants to local governments, designed to prevent homelessness through mediation, rental assistance, and legal counsel for low-income tenants.
What the text implies
- Landlords face mandatory 30-day delay before formal eviction filing, increasing carrying costs and administrative burden; this may incentivize settlement but could also reduce willingness to rent to marginal tenants or increase rents to offset delay risk.
- Free legal counsel requirement for tenants earning ≤200% of federal poverty line creates asymmetric representation incentive—landlords represented by counsel must face tenant counsel at no cost, potentially shifting negotiating power and settlement patterns.
The full analysis lists 4 implications of this text.
Who stands to gain
Legal aid organizations and tenant advocacy nonprofits; Rental assistance administrators and housing counseling agencies; Local government housing departments