Derelict Building Grant Program

Derelict Building Grant Program

Funding to assist communities and counties in addressing derelict buildings through deconstruction, renovation/mothballing, and/or conducting environmental studies.

Eligible Project Criteria

Eligible derelict buildings include any commercial or public building that a local government has ownership of or intent to own. Applicants may ask for funding to cover asbestos containing materials (ACM) inspections of buildings not owned by the city at the time of application submittal. For the purpose of this program, a derelict building is defined as:

A buildings abandoned by the owner, or the owner is recalcitrant, or the owner is not financially viable to bring the building into compliance with state and local building codes.
A building that is dilapidated, neglected, has become a nuisance, fallen into a state of disrepair or deterioration, or falling into ruins.

If a building is listed on the National Register of Historic Places or maintains a State of Iowa Historical listing, it is not eligible for this program.

Reimbursable services covered by this grant include:

Certified ACM inspection.
Removal and disposal of ACM by certified asbestos removal contractors.
Structural engineering analysis performed by an experienced structural engineer or architectural historian to determine the ability to renovate a building.
Phase I environmental assessment, which includes a review of known environmental records and land use information about the site and vicinity.
Phase II environmental assessment, which includes actual soil, groundwater, and structural materials sampling, to determine if contamination exists (the need of this assessment is driven by the results of the phase I assessment).
Building deconstruction, with the purpose of maximizing recycling and reuse of materials to minimize landfill disposal (goal of 30 percent landfill diversion by weight).
Building renovation/mothballing using waste minimization, reuse, and recycling practices, including the use of salvaged or recycled content material during the renovation:
– Reimbursement of costs related to the removing of materials for reuse, either at the site of offsite, or for recycling.
– Reimbursement for the purchase and installation of reused or recycled materials that will be incorporated into the project

Additional Requirements and Information

Projects must have a landfill diversion component through the recycling and reuse of materials
Funding is provided on a reimbursement basis.
State of Iowa approved contractors must be used for handling ACM and hazardous materials.
For every additional 10 percent of landfill diversion by weight about 30 percent that is documented upon completion of the project, applicant cost share is reduced by 5 percent and the grant award amount will increase accordingly (the maximum grant award for deconstruction projects shall not exceed $75,000).
Grant funding assistance breakdown by reimbursable service:

Certified ACM inspections100 percent
Removal and disposal of ACM100 percent$10,00050 percent cost share required for costs exceeding $10,000
Structural engineering analysis100 percent$1,500Applicant is responsible for all costs over $1,500
Phase I environmental assessment100 percent$3,000Applicant is responsible for all costs over $3,000
Phase II environmental assessment50 percent$2,500Applicant is responsible for all costs over $5,000
Building renovation50 percent$50,000Applicant is responsible for all costs over $100,000
Building deconstruction50 percent$50,000Applicant is responsible for all costs over $100,000


Iowa Department of Natural Resources (DNR)

Eligible Applicants

– Any county of municipal government that owns or intends to own a building that resides in an area with a population of less than 5,000
– An applicant may partner with a local non-profit organization on a project
– Eligible buildings must be abandoned or vacant for at least six months prior to the start of a project.

Application Deadline

February 25

Award Announcement


Contact Person

Reid Bermel, Environmental Specialist Senior
Land Quality Bureau – FABA Section
Department of Natural Resources
502 E 9th Street
Des Moines, IA 50319
Phone: (515) 725-8318