Iowa DNR accepting applications for special grant funding round through Derelict Building Grant program
DES MOINES – The Iowa Department of Natural Resources (DNR) has announced a special, one-time funding opportunity for the Derelict Building Grant Program (DBGP). With an additional $1 million allocated to the program, the DNR is launching this initiative to help Iowa municipalities cover the essential costs of managing asbestos in dilapidated buildings.
This special funding round is exclusively dedicated to removing asbestos-containing materials (ACM) in eligible properties, as required by the program's regulations.
Eligible Projects and Applicants
This grant opportunity is open to municipal governments with populations of less than 5,000. Eligible projects include public or commercial buildings that have been unoccupied for at least six months and are currently owned by the local government. Municipalities may partner with a local non-profit organization to facilitate these projects.
For this grant, a "derelict building" is defined as a structure that meets one or more of the following criteria:
- The owner has abandoned the building, is uncooperative, or is unable to bring it into compliance with local and state codes due to financial constraints.
- The building is dilapidated, damaged, considered a nuisance, or has fallen into a state of disrepair or ruin.
** Buildings listed on the National Register of Historic Places or on a State of Iowa Historical listing are not eligible for this program. **
Funding Assistance
The DNR is offering the following financial support to help communities mitigate health and environmental risks:
- Asbestos Inspections: 100% reimbursement for Certified Asbestos Inspections.
- Abatement Costs: 100% reimbursement for the abatement of asbestos-containing materials (ACM), up to a maximum of $10,000. For costs that exceed $10,000, a 50% cost share is required.
Applicants should note that awarded amounts may not reflect full funding requests. Funds are released on a reimbursement basis after the submission of a properly completed Grant Expense Sheet along with supporting documentation, such as invoices, receipts, and purchase orders.
Ineligible Costs
Financial assistance from this program cannot be used for the following expenses: taxes, overhead or indirect costs, legal fees, contingency funds, proposal preparation, land acquisition, or expenses covered by other financial assistance programs.
Additionally, any costs incurred prior to the execution of the agreement, after the agreement’s performance period, or not included in the approved project budget are not eligible for reimbursement.
Important Dates and Deadlines
- Application information can be found on the Iowa Derelict Building Program page
- Application Deadline: All applications must be submitted by the close of business on Friday, October 9, 2026.
- Performance Period: Successful applicants will have from December 1, 2026, to February 26, 2027, to complete abatement projects.
Questions regarding the Derelict Building Grant Program or assistance with the preparation and delivery of proposals should be directed to Reid Bermel at the Iowa Department of Natural Resources Land Quality Bureau.
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