By Ray Birch
DANVILLE, Ill. — In a small Illinois town grappling with economic decline, homelessness, and shrinking opportunity, one local credit union is thinking big by going small—very small.
The $74-million Education Personnel FCU here is launching an initiative to build tiny homes and create micro-communities for people experiencing homelessness. But the project is about more than housing—it’s about healing, stability, and a path to long-term self-sufficiency.
“It’s not just about handing over a set of keys and saying, ‘Good luck,’” said Hope Garrett, CEO of the credit union. “We’re trying to address the full scope of what leads to homelessness—whether it's mental health issues, substance use, or just falling on hard times.”
The idea: create clusters of five to seven tiny homes, each around 500 square feet, that are affordable, safe, and transitional. Residents will pay modest rent—Garrett is aiming for about $300 a month—with incentives built in for completing things like job training or counseling. Eventually, some of that rent could even be refunded to help fund a down payment on a more permanent place to live, Garrett said.
That approach reflects both innovation and the core mission of credit unions: to serve their communities and improve lives, the CEO noted.
“This is absolutely aligned with what credit unions were founded to do,” Garrett said. “We’re here to support financial stability and uplift our members and neighbors—not just profit off them.”
A Community Need, A Cooperative Response
Danville, a rural city of just under 30,000 people near the Illinois-Indiana border, has suffered from decades of manufacturing decline. Its population has dropped significantly since Garrett was a child, and with that, homelessness has become more visible and urgent.
“Homelessness isn’t just one story,” she said. “We have folks coming out of our local prison with nowhere to go. We have veterans coming out of the VA hospital who don’t have housing. We have families that were just one paycheck away from being on the street.”
The tiny home initiative offers a manageable, scalable solution. With help from the city, the credit union is securing land in areas with access to public transportation and retail services. The goal is to build five to six homes in the first phase, likely beginning construction in 2026.
“It’s small, but that’s the point,” Garrett said. “We want to work out the kinks, learn, and grow this into something sustainable.”
A New Frontier For Credit Union Lending
Garrett had been watching the tiny homes trend for years, especially as credit unions explored new lending niches. But the tipping point came when she realized the opportunity to serve her own community—and to do it in a way that was financially responsible and mission-driven.
EPFCU is establishing a 501(c)(3) foundation to manage the project, a move that allows the credit union to fund the startup phase while pursuing grants and donations for long-term growth. The foundation will ultimately own and manage the homes.
A bonus? A for-profit tiny home manufacturer has donated blueprints for the homes, free of charge, because the project serves a nonprofit purpose.
“It’s just one of those serendipitous things,” Garrett said. “When you’re doing the right thing for the right reasons, people want to help.”
Rent With A Purpose
Keeping rent low is essential—not just to make housing accessible, but to help residents save for what’s next.
Garrett envisions a rent structure that not only covers maintenance and operating costs but also contributes to a resident’s future.
“I’d love for the credit union to put away $50 to $100 each month,” she said, “so when someone completes the program, they walk away with savings for a security deposit or even a down payment.”
Those incentives would be tied to personal growth—mental health counseling, job skills training, or other programs offered through local nonprofit partners. The idea is to make housing part of a larger support system.
“We’re not a mental health provider, but we know who is,” Garrett said. “This is about collaborating across our community to give people what they need to succeed.”
From Crisis To Community
More than housing, Garrett wants to foster a sense of belonging among residents. Each micro-community will be small enough to encourage connection but supported by a network of agencies and services.
“It’s about creating a place where people can feel safe, supported, and like they’re part of something again,” she said. “We’re building homes, yes—but more importantly, we’re building hope.”
Though it’s still in the early stages, the initiative is already gaining momentum. Garrett has formed a community working group called Tiny Homes of Vermilion County, launched a social media presence, and started connecting with local education, healthcare, and social service leaders to create wraparound support.
“This might sound like a wild idea to some,” Garrett said. “But if the old ways had worked, this problem would’ve been solved already. We’re trying something new—and we believe it can work.”