Derelict Building Grant Program

The Derelict Building Grant Program is administered by the Iowa Department of Natural Resources and is funded through the Department's Solid Waste Alternatives Program. The program assists small Iowa communities with neglected, abandoned, or vacant commercial and public buildings while improving community appearance and reducing environmental, health, and safety hazards. A central statutory and programmatic objective is landfill diversion through recycling and reuse of building materials. The program is available to Iowa municipal governments serving populations of fewer than 5,000 residents. Eligible buildings must generally have been unoccupied or abandoned for at least six months and must be former commercial or public buildings. Eligible assistance includes certified asbestos-containing material inspections, asbestos abatement, structural engineering analysis, Phase I and Phase II environmental site assessments, building renovation, and deconstruction. Certified asbestos inspections are reimbursable at 100 percent. Asbestos abatement is reimbursable at 100 percent up to $10,000, with a 50 percent applicant cost share for costs exceeding $10,000. Structural engineering analysis is reimbursable at 100 percent up to $1,500, and Phase I environmental assessments are reimbursable at 100 percent up to $3,000. Phase II environmental assessments are reimbursable at 50 percent up to $2,500. Renovation assistance provides 50 percent reimbursement up to $50,000 for eligible activities such as restoration or removal of materials for reuse or recycling, roof repair or replacement, building stabilization, and tuck-pointing of exterior walls. Deconstruction projects are generally eligible for 50 percent reimbursement up to $50,000 and are expected to divert at least 30 percent of the structure by weight from landfill disposal. The program provides a cost-share incentive for documented diversion above 30 percent. For each additional 10 percent of landfill diversion, the applicant cost share is reduced by 5 percentage points and the grant award may increase accordingly, with a maximum deconstruction award of $75,000. Ineligible costs include taxes, overhead, indirect expenses, legal costs, contingency funds, proposal preparation, land acquisition, costs paid through other financial assistance programs, costs incurred before an executed agreement, costs incurred after the agreement expires, and costs not identified in the approved agreement budget. Only a city government may apply, and the municipality must own or be in the process of owning the building. The factsheet describes eligible applicants as municipal governments with populations under 5,000. A city may partner with a local nonprofit organization, but the building must be owned by the applicant for the project, subject to the limited provision allowing asbestos inspection funding for buildings not yet owned by the city at application. Buildings listed on the National Register of Historic Places or maintaining a State of Iowa Historical listing are not eligible. The structure must be a commercial or public building that has been unoccupied for at least six months. The FY26 application deadline was Friday, February 27, 2026. The program materials also describe an annual funding round, with applications usually due in early spring. Applicants submit a signed proposal with required supporting materials. Email submission must be sent to both Becky.Jolly@dnr.iowa.gov and Reid.Bermel@dnr.iowa.gov. Applicants unable to submit electronically may mail a signed hardcopy to Reid Bermel, Department of Natural Resources, 6200 Park Ave Ste 200, Des Moines, Iowa 50321. Required supporting materials include street-level color photographs of all sides of the derelict building, a project timetable, a complete insurance form, and applicable letters of support from prospective building tenants, owners, partners, and reuse or recycling outlets. Questions regarding the program or preparation and delivery of proposals may be directed to Reid Bermel at Reid.Bermel@dnr.iowa.gov or 515-217-7230. Applications are reviewed, scored, and ranked by a review team using published criteria. Project Narrative is worth 50 points and addresses landfill diversion, materials targeted for reuse or recycling, identified markets, disposal plans, redevelopment plans, relationship to longer-range community development plans, and a clear description of the current situation, desired outcome, and steps to achieve it. End Use Markets are worth 20 points, Budget Narrative and Details are worth 20 points, and supporting materials are worth 10 points. Preference is given within the project narrative criteria to redevelopment plans resulting in job creation and revenue generation. The review team includes representatives from Keep Iowa Beautiful, the Iowa Society of Solid Waste Operators, the Iowa Recycling Association, the Iowa Department of Economic Authority, and the Iowa Department of Natural Resources. Funds are typically available approximately three months after application submission and are released on a reimbursement basis after DNR receives a correctly completed Grant Expense Sheet and supporting documentation. Awarded amounts may be less than requested.

Focus heavily on the 50-point Project Narrative: clearly explain landfill diversion, materials targeted for reuse or recycling, viable end markets, disposal plans, redevelopment plans, community-development connections, and the steps from the current situation to the desired outcome. Document strong reuse and recycling markets with letters or other evidence. Clearly explain budget line items and cost-share sources. Deconstruction projects should plan for at least 30% diversion by weight and can improve cost share through higher documented diversion.