Establishment of pilot program to support eviction diversion programs

(a)

Establishment

Not later than 1 year after the date of the enactment of this section, the Secretary of Housing and Urban Development (hereafter referred to as the Secretary) shall establish a pilot program to provide grants to eligible entities to fund the establishment or expansion of pre-filing eviction diversion programs. (b)

Eligibility

To be eligible for a grant under this section, an entity shall be a unit of general local government. (c)

Use of funds

An eligible entity that is awarded a grant under this section shall use such grant amounts to establish or expand an eviction diversion program. (d)

Technical assistance

The Secretary may provide technical assistance to eligible entities that are awarded a grant under this section, including by issuing model forms to standardize a landlord notice to a tenant with respect to a tenant’s right to engage in an eviction diversion program to ensure accessibility by tenants. (e)

Reporting requirements

(1)

Annual report

Not later than 1 year after the date of the enactment of this section, and annually thereafter until the date described in subsection (f), an eligible entity that is awarded grant under this section shall submit to the Secretary a report that includes— (A)the number of eviction diversion program cases filed; (B)the average cost for each case; (C)the types of landlords in each case; (D)the percentage of landlords and tenants represented by legal counsel in each case; (E)the aggregated demographic data of tenants participating in the eviction diversion program, including data on income range, age, racial and ethnic identity, and urban, suburban, and rural residency; and (F)any other information as the Secretary may require. (2)

Summary to Congress

Not later than 3 months after receiving the annual reports under paragraph (1), the Secretary shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report that summarizes such reports. (3)

Pilot program period reports

Not less frequently than twice between the date of the enactment of this section and the termination date described in subsection (f), the Inspector General of the Department of Housing and Urban Development shall complete an assessment of the implementation and operation of the pilot program under this section, to ensure the fair and legitimate use of such program. (f)

Duration and expiration

The pilot program under this section shall terminate on December 31, 2030. (g)

Authorization of appropriations

There is authorized to be appropriated to the Secretary to carry out this section $300,000,000 for each of fiscal years 2026 through 2030. (h)

Eviction diversion program defined

In this section, the term eviction diversion program means a program that includes the following attributes with respect to residential rental housing within the jurisdiction of the unit of general local government: (1)A requirement that landlords notify tenants in writing, by hand delivery and by mail with proof of mailing, of the tenant’s right to engage in an eviction diversion program and how to exercise such rights. The notice shall explain that opting to participate in an eviction diversion program does not waive any of the tenant’s legal rights, including the right to go to trial before a judge and jury if the diversion program is unsuccessful in resolving the dispute. (2)A requirement that if the tenant chooses to participate in the eviction diversion program, that landlords and tenants participate in the program, in good faith, for a minimum of 30 days before the landlord initiates any formal eviction proceedings. (3)Dispute resolution procedures between the landlord and tenant with respect to a potential eviction, including— (A)direct rental assistance or the connection to rental assistance; (B)mediation services; (C)assigning a housing counselor to the tenant; and (D)any other assistance to facilitate dispute resolution between the landlord and tenant. (4)An exception to participation in the program for evictions necessary to prevent an imminent threat of physical harm. (5)In the case that the landlord does not comply with any requirement of the program, the ability of the tenant to assert such noncompliance as a defense in any related eviction court proceeding. (6)In the case that the landlord is represented by legal counsel, the tenant has a right to counsel at no cost if their income is equal to or less than 200 percent of the Federal poverty line before the diversion process can occur.