Governor Requests Additional $1M for Derelict Buildings Program

It's your town. Your lives. Your stories. Make sure someone's telling them—donate to Decorah News now. Gov. Kim Reynolds' budget request for the Iowa Department of Natural Resources is seeking an additional $1 million for the department's derelict building program, more than doubling the program's current budget. The program helps small communities across the state deal with things like asbestos, deteriorating structures or hazardous chemicals found in abandoned buildings. DNR works with local communities to promote material recycling and landfill diversion as these rundown buildings are taken down to make room for new community spaces. According to DNR, the program has diverted more than $3 million in landfill disposal fees for communities across the state. DNR Director Kayla Lyon said in a House appropriations subcommittee Monday that currently the program is funded through landfill tipping fees – a fee on solid waste – at a rate of about $400,000 annually. Lyon said those funds went to 10 different projects in 2025, and that every year there is more demand for the program than what the department can fund. Reynolds' fiscal year 2027 request for the Rebuild Iowa Infrastructure Fund seeks $1 million toward DNR's derelict building program, a program not previously funded outside of the landfill tipping fees. Lyon said the $1 million appropriation, if the Legislature approves it, would fund the program in addition to the approximately $400,000 coming from tipping fees. According to a presentation from the department, to date the program has helped to repurpose 91% of the demolition materials generated from the projects. "The goal here is to provide resources to the community, but also divert products from the landfill and try and repurpose as much as possible," Lyon said to the subcommittee. Many of the past projects have included asbestos abatement and the deconstruction of buildings. Once razed, the spaces have accommodated new construction projects, or have been converted into community spaces like parks. Lyon said the money that communities with under 5,000 residents receive from the program is important, but so is the technical advice the department is able to provide through the process. Rep. Jeff Cooling, D-Cedar Rapids, said if the department was able to support 10 projects with a budget of just $400,000, the requested $1 million would "go quite a ways." "I'd be in full support of giving you all the money you need," Cooling said in the House Transportation, Infrastructure, and Capitals Appropriations Subcommittee. The remainder of the fiscal year 2027 request for the department mirrored that of the current fiscal year. The governor's request totaled $113.9 million for the department. This figure includes everything from department operations, state park maintenance, water and air quality monitoring, fish and wildlife operations, state water trails and other areas overseen by DNR. Get the inside scoop! Subscribe to the free DecorahNews.com newsletter and receive local news, expert analysis, and stories that matter most—straight to your inbox.