The Stable Homes Act directs the Department of Housing and Urban Development to establish a grant program providing funding to local governments for creating or expanding eviction diversion programs. These programs would require landlords to notify tenants of their right to participate in dispute resolution before filing for eviction, and tenants and landlords would have to engage in good faith negotiation for at least 30 days. Eviction diversion programs must include resources such as rental assistance, mediation services, and housing counseling to help resolve disputes between landlords and tenants. The bill authorizes $300 million annually for fiscal years 2026 through 2030 and requires participating local governments to submit annual reports on program outcomes, including data on cases filed, costs, tenant demographics, and legal representation. The pilot program is set to terminate on December 31, 2030, with the HUD Inspector General conducting assessments twice during the program period to ensure proper implementation.