OK, just some clarifications for people.
The WCA delegates in the Midwest and myself and Jim Mertens. (
http://www.worldcubeassociation.org/node/316) Now, perhaps there's a possibility of someone being able to be a new delegate, but this is who it is currently.
Competitions must be announced preferably one month in advanced. Any options of having a competition in the summer are getting shorter and shorter.
I know that everyone would really like to have the competition in their hometown. If you want that, then you need step up and do it. If you have the expectation that you can organize a competition for $0, that's fairly unreasonable. I've spent a few hundred dollars on the competitions I've run. Now, some of those expenses make things "free" for the next competition I run (like timers and displays), but some other expenses are one-time (like cost of printing all the stuff, batteries) and I also deal with some unexpected costs (like my stopwatches going missing).
Bob Burton told me that he's decided to always just ask for his travel expenses to be paid, because of the work that he does as a delegate is substantial, plus he's bring a lot of equipment that's needed, it's worth it. As much as I would like to spend a bunch of money to run competitions for others, I already do that once a year.

Depending on the location, I might know someone and I can crash at their place, but that's really location dependent.
Now, the costs don't have to be absorbed by a single person. If a few people can chip in more than the typical registration, then things can work out better. Yes, registration fees can cover some expenses, but you need to remember that the Midwest competitions are usually smaller, so you're not going to bring in that much money in registration fees.
While stating "If you have it, I'll help judge", is helpful, you need to have someone step up to the role of getting those critical things (venue, funds, enough officials) for the competition if it's going to become a reality.