10/10/2025
Letter I wrote to Rock Island Leadership today.
Utilizing the City’s Community & Economic Development Fund to Address Homelessness
Dear Mayor Harris and Members of Council,
In reviewing Rock Island’s 2024 Annual Comprehensive Financial Report (ACFR), I have identified a significant opportunity for our city to take a proactive, coordinated step toward addressing homelessness and housing instability—using resources that already exist within our budget.
1. Availability of Local Funds
As of December 31, 2024, the City’s Community & Economic Development (CED) Fund held an audited balance of $6,188,858.
Analysis of the CED Fund across the past decade (2013–2024) shows that:
Roughly 40% (~$2.4–$2.6 million) of this balance stems from federally restricted HUD revolving loan funds (CDBG/UDAG).
Approximately 60% (~$3.6–$3.8 million) are local and discretionary dollars—largely accumulated from TIF surpluses, property sales, and loan repayments.
This local portion remains fully under Council’s control and can legally be allocated to community development initiatives, including housing stabilization and homelessness prevention.
2. Legal and Programmatic Flexibility
Under both federal and state law:
CDBG and UDAG funds can support acquisition, rehabilitation, or operation of housing for low- and moderate-income or unhoused residents.
Locally generated CED funds and TIF-related revenues may be directed—by Council resolution—toward any redevelopment or neighborhood stabilization purpose, including housing for vulnerable populations.
The Illinois TIF Act (65 ILCS 5/11-74.4-3(q)) explicitly allows use of redevelopment funds for construction or rehabilitation of housing for low- and moderate-income households.
Accordingly, the City could prudently allocate $1 million—less than one-third of its unrestricted CED balance—toward a dedicated Homelessness and Housing Stabilization Fund without compromising fiscal stability. This move also requires no new taxes on Rock Island taxpayers.
3. Proposed Next Steps
To ensure thoughtful planning and collaboration, I respectfully propose that the Council:
Establish a Homelessness and Housing Stabilization Fund within the CED Fund, initially capitalized at $1 million from unrestricted balances.
Create a Homelessness Response Task Force consisting of City staff, nonprofit partners, county representatives, and lived-experience voices.
The Task Force’s charge would be to research best practices, analyze current service gaps, and recommend the most effective investments of city funds to pursue a goal of zero homelessness in Rock Island.
Engage peer cities in the Quad Cities region—Moline, East Moline, Davenport, and Bettendorf—to explore shared commitments and regional cost-sharing for homelessness services and to ask for similar levels of investment in tackling homelessness and deep poverty.
Set measurable goals for reducing unsheltered homelessness, increasing housing placements, and expanding supportive services.
This approach would align Rock Island’s fiscal capacity with its moral and civic leadership, ensuring that resources already in hand directly benefit residents most in need.
Rock Island has not engaged in serious anti-poverty work despite having the highest levels of poverty in our region. It is the responsibility of a city to care for its residents who are struggling. As you seek to limit the role of non-profits in addressing the needs of the poor and homeless, the City will need to take a stronger leadership role in addressing homelessness and suffering.
I am including this article as a reminder that it is a city’s job, not non-profits or business owners or residents, to care for those who are facing hardships that have real impacts on the entire community.
https://www.umklaw.com/homelessness-a-3-billion-win
I will also point you toward the work of Dallas, TX on driving homelessness to zero through rapid rehousing. I believe there is momentum for public/private partnerships to move people into housing. Take note of the landlord partnership program.
https://housingforwardntx.org/soha-pit/
This is a moment to move decisively: to turn fiscal capacity into visible compassion and regional collaboration. I will help in any way I can.
Sincerely,
Annika O’Melia
Rock Island Resident
Housing Forward leads data collection and evaluation for the homeless response system in Dallas and Collin Counties through specific programs. One way we share the data and evaluation for our […]