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Janesville CDA reallocates $10,400 in CDBG public-service funds to local rental assistance and health services
Summary
The Janesville Community Development Authority voted 4-2 (with one member absent) to reallocate $10,400 in Community Development Block Grant public‑service funds, splitting the money between ECHO and Health Net after a friendly amendment to the original motion.
The Janesville Community Development Authority voted to reallocate $10,400 in federal Community Development Block Grant (CDBG) public‑service funds, directing $7,600 to ECHO for rental assistance and $2,800 to Health Net.
The decision came after public comment from Jessica Loker, executive director of ECHO, and staff presentations on available funding. "So so far this year, we've spent $55,000 just in the city of Janesville doing prevention, rental assistance. And 48% of those households had children in them. 20% were homeless right before they moved into that unit," Loker told the CDA, adding that ECHO is currently booking rental assistance into June and that more funding would be "greatly beneficial."
The CDA staff presentation noted that the council received a slightly higher CDBG allocation than preliminarily expected. Kelly, a staff member presenting the allocation options, said the YWCA of Rock County informed the city it would decline its $10,400 allocation because it is undergoing a strategic reorganization; that freed the funds for reallocation. Kelly read the YWCA's message of appreciation and explained the CDA could reallocate the funds to other agencies, retain them for city programs, or wait to allocate them in the next competitive round.
Jennifer, delivering the director's report material during the discussion, cautioned about HUD timing and restrictions on public‑service funds. "Public service funds should be used in the year in which they're allocated," she said, noting the city had the allocation but not yet the executed HUD contract for 2025.
A motion to allocate the full $10,400 to ECHO for rental assistance was made and seconded. During discussion a friendly amendment was proposed and accepted to increase Health Net's allocation to $2,800 and reduce ECHO's to $7,600. The amended motion passed 4-2 with one member absent.
Members who spoke during the debate raised concerns about Health Net's prior financial management and service delivery; several members said they wanted to see continued improvement before increasing Health Net's allocation in future rounds. One member argued ECHO had proven to be "very fiscally responsible" and that its programs had a larger immediate community impact.
The CDA also heard that if the CDA chooses not to reallocate the funds now, it could retain them for other city programs or hold them until the next application round for 2026 funding. Staff said allocations decided in the fall would not reach agencies until after HUD completes its award process the following year.
Votes at a glance
- Allocation motion (amended): $2,800 to Health Net; $7,600 to ECHO — Passed 4 yes, 2 no, 1 absent.
What this means
ECHO will receive the majority of the reallocated public‑service funds to expand emergency rental assistance in Janesville. Health Net will receive a smaller, conditional increase while members monitor its financial and programmatic changes ahead of the 2026 funding round.
Next steps
Staff said the next competitive round for 2026 funds will open next month, and the CDA will revisit allocations then. Staff also noted the city has constraints from HUD on how public‑service funds can be carried over or reallocated across fiscal years.
