Eviction Diversion Programs: How Installment-Based Rent Repayment Plans May Help You Stay Housed
If you've fallen behind on rent and received an eviction notice, eviction diversion programs — like the one recently launched in Alexandria, Virginia — may offer a path to staying in your home by allowing you to repay overdue rent in manageable installments rather than facing immediate court-ordered removal. These programs, which exist in various forms across the United States, are specifically designed to keep tenants housed while giving landlords a structured path to recovering what they're owed.
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Data Snapshot
According to HUD's Office of Policy Development and Research, emergency rental assistance programs funded through the federal government distributed over $46 billion to households across the country between 2021 and 2023 (source: HUD.gov — Emergency Rental Assistance Program). At peak distribution, more than 3.8 million unique households received some form of rental assistance through ERA1 and ERA2 funding. Despite this, eviction filings have rebounded in many cities to near pre-pandemic levels, making local eviction diversion programs — like Alexandria's installment-based model — an increasingly critical safety net for renters who fall through the gaps of broader federal programs.
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What Is an Eviction Diversion Program?
An eviction diversion program is a local or state-level intervention designed to resolve landlord-tenant disputes — particularly those involving unpaid rent — before they result in a formal eviction judgment. Rather than proceeding straight to court-ordered removal, these programs typically offer one or more of the following:
- Mediation services between tenant and landlord
- Structured repayment agreements that allow tenants to pay back rent over weeks or months
- Direct rental assistance payments to landlords on behalf of qualifying tenants
- Legal representation or advice for tenants who may not understand their rights
Alexandria's newly announced program specifically focuses on the installment repayment model, meaning tenants who owe back rent may be able to negotiate a payment schedule that keeps them in their homes while satisfying the landlord's claim — without a formal eviction on their record.
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Who These Programs Are Typically Designed to Help
While eligibility rules vary by city and state, most eviction diversion programs are structured to assist renters who:
- Are at or below 80% of the Area Median Income (AMI) for their area (some programs extend to 100% or 120% AMI)
- Have experienced a documented financial hardship such as job loss, medical emergency, or reduction in hours
- Are currently behind on rent and have received a formal notice to pay or quit, or a court summons
- Are renting a unit covered under the program's geographic or property-type eligibility rules
Some programs also require that the landlord agree to participate — which is why early outreach and mediation are often built into the process. Landlords who participate typically agree not to pursue eviction while a repayment plan is in effect.
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How to Find an Eviction Diversion Program Near You
Step 1: Check With Your Local Housing Court
Many eviction diversion programs are administered directly through local housing or general district courts. When an eviction case is filed, court staff or a diversion coordinator may reach out — but don't wait for that contact. If you've received an eviction notice, call your local courthouse and ask specifically whether an eviction diversion or mediation program is available.
Step 2: Contact Your Local Housing Authority
Your city or county housing authority may administer or be able to refer you to a diversion program. You can find your local Public Housing Authority (PHA) through HUD's online directory at HUD.gov. Many PHAs also administer Emergency Rental Assistance (ERA) funds that may cover some or all of your arrears directly.
Step 3: Reach Out to a Legal Aid Organization
Legal aid offices often serve as frontline connectors to eviction diversion resources. They can help you understand your rights, communicate with your landlord, and navigate any court proceedings. Search for your local legal aid office through your state bar association's website or through USA.gov.
Step 4: Apply for Emergency Rental Assistance
If your area still has active Emergency Rental Assistance funding, applying for ERA may resolve the arrears entirely — removing the need for an installment plan. Check Benefits.gov to search for rental assistance programs available in your state.
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Documents You'll Likely Need
Whether you're applying for a formal diversion program or negotiating a repayment plan, having the right documents ready will speed up the process significantly. Most programs ask for:
- Current lease or rental agreement showing your address, rent amount, and landlord contact information
- Eviction notice or court summons (the formal document you received from your landlord or the court)
- Proof of income for all household members — recent pay stubs, benefit award letters, or tax returns
- Documentation of hardship — termination letter, medical bills, or other records showing why you fell behind
- Government-issued photo ID for the primary applicant
- Bank statements (last 1–3 months) may be requested to verify income and assets
- Proof of residency such as a utility bill if your lease doesn't confirm your current address
Having these documents organized before your first call or appointment can make a meaningful difference in how quickly your case moves forward.
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What a Repayment Plan Typically Looks Like
Installment-based repayment agreements — the model Alexandria is now using — generally work like this:
- The total arrears are calculated — this includes all unpaid rent, and sometimes late fees depending on local law.
- A repayment schedule is negotiated — payments may be spread over 3, 6, or 12 months, added on top of your regular monthly rent.
- Both parties sign a written agreement — this is a legal document, so read it carefully and ask questions before signing.
- The eviction case is paused or dismissed — as long as you stay current on both your regular rent and the repayment installments.
- If you miss a payment, the landlord may have the right to resume eviction proceedings — so only agree to a schedule you can realistically maintain.
Some programs include a case manager or housing counselor who checks in with you during the repayment period to help you stay on track.
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If You're in a State Without a Formal Diversion Program
Not every city or county has a structured eviction diversion program. If yours doesn't, you still have options:
- Negotiate directly with your landlord — many landlords prefer a repayment agreement over the cost and time of eviction court. Put any agreement in writing.
- Apply for LIHEAP or other utility assistance — freeing up money from utility bills may help you redirect funds toward rent arrears. The Low Income Home Energy Assistance Program (LIHEAP), administered by HHS, may be available in your state.
- Contact 211 — dialing 2-1-1 connects you to local social services, including emergency rental assistance, food assistance, and housing counseling.
- Request a continuance in court — if you have a court date, you may be able to ask the judge for additional time to arrange payment. A legal aid attorney can help you make this request.
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A Note on Timing
This cannot be overstated: eviction diversion programs almost always have a window. Once a formal eviction judgment is entered against you, your options narrow significantly — and an eviction record can follow you for years, making it harder to rent in the future. If you've received any written notice from your landlord about unpaid rent, treat it as urgent and start making calls the same day.
Program eligibility and availability vary by state. Not affiliated with any government agency.
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People Also Ask
Q: Does an eviction diversion program stop the eviction process? A: In many cases, yes — participating in an approved diversion program may pause or dismiss an eviction case while a repayment plan is in effect. However, this depends on your local program's rules and whether your landlord agrees to participate. Missing a scheduled installment payment may allow the landlord to resume court proceedings.
Q: Can I access eviction diversion help if I've already received a court date? A: Many programs accept participants up to and including the day of the court hearing, though earlier is always better. Contact your local housing court clerk or a legal aid office immediately if you have a court date scheduled. Some courthouses have diversion coordinators on-site during eviction dockets.
Q: What if my landlord refuses to participate in a repayment plan? A: Landlord participation is voluntary in most programs. If your landlord declines, you may still be able to apply for emergency rental assistance that pays the arrears in full, which landlords are more likely to accept. A legal aid attorney can also help you explore whether your landlord's refusal affects your legal standing in court.
Q: Will an eviction diversion program show up on my rental history? A: Successfully completing a diversion program typically means the eviction case is dismissed or not formally entered as a judgment, which may help protect your rental history. A formal eviction judgment, by contrast, can appear on tenant screening reports. Outcomes vary by jurisdiction, so ask your program coordinator or legal aid attorney about your specific situation.
Q: Are eviction diversion programs only for renters, or can homeowners access similar help? A: Eviction diversion programs are specifically for renters. Homeowners facing foreclosure have separate options, including HUD-approved housing counseling agencies and the Homeowner Assistance Fund (HAF), which may still have active funding in some states. Visit HUD.gov or Benefits.gov to explore homeowner-specific programs.
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Last reviewed: October 2026