State Awards $385,000 in Grants to 15 Rural Iowa Communities
October 13, 2026 (DES MOINES, IA) — Governor Kim Reynolds and the Iowa Economic Development Authority (IEDA) today announced $385,000 in Empower Rural Iowa grants supporting 15 rural communities across the state.
The funding will help expand housing, strengthen child care and encourage business and community growth.
Rural Innovation: Housing 2.0
This program supports creative solutions to increase and improve rural Iowa’s housing supply. After reviewing 12 applications, the state awarded $50,000 each to Atlantic, Eldora, Greenfield and Knoxville. Elkader received $25,000. Projects include:
- Eldora: The city will remove six to eight vacant, dilapidated homes that are no longer suitable for rehabilitation, creating redevelopment-ready lots for new housing. Working with local partners, Eldora will coordinate property acquisition, environmental reviews, asbestos inspections and demolition, then package the cleared sites to attract a developer. The city hopes to address a gap in homes priced around $150,000 to $250,000 while improving neighborhood conditions.
- Elkader: The city will create a housing development tool kit for 11 residential lots in its Breezy Summit subdivision. Several lots are suited to Homes for Iowa, a nonprofit that trains incarcerated Iowans in the building trades, while others require different home designs. The project will develop site-specific concepts, including floor plans, exterior designs and 3D visuals. It will also gather financing options from local lenders to help builders and prospective buyers move projects toward construction.
- Greenfield: Paramount Development of Clive will retain and relocate 10 federally assisted senior cottages to a 1-acre site in Greenfield. Six modular homes currently in storage will be rehabilitated and installed on permanent foundations. Four occupied cottages will be rehabilitated and relocated as they become vacant. The project addresses housing needs intensified by a 2024 tornado and will provide 10 affordable, accessible rental homes for seniors earning 30% or less of area median income.
Rural Housing Readiness Assessment
Grants of $20,000 were awarded to the cities of Alta, Avoca, Bellevue, Washington and Winterset. These communities will partner with Iowa State University Extension and Outreach to assess housing needs and guide local development strategies.
Rural Child Care Planning
A grant of $20,000 was awarded to the Algona Growth Alliance. Working with the national nonprofit First Children’s Finance, the alliance will analyze local data and identify solutions to meet specific child care needs.
Rural BOOST
Additionally, four cities each received a $10,000 grant through the Rural Building Ownership and Organization by Strengthening Teams (BOOST) program, which pairs community and business leaders with a team of experts to develop and implement plans for next-step growth. Along with Sheldon and Sidney, grants were awarded to:
- Bloomfield: Fairfield-based Pathfinders Resource Conservation & Development Inc. will bring together the city, county, Bloomfield Main Street, chamber and other partners to tell the story of Davis County and Bloomfield, highlighting local history, businesses, events, recreation and quality of life. A BOOST grant will support a unified communications strategy, with shared messaging and a coordinated promotion calendar to help partners reach residents, visitors, employers, prospective families and investors.
- Centerville: Despite more than $13 million in private downtown investment since 2014, first-floor commercial vacancies are at their highest level in about a decade, and longtime business owners face succession challenges. A BOOST team will help the Centerville Chamber of Commerce — doing business as Promoting Appanoose & Centerville Together (PACT Iowa) — identify ways to support entrepreneurs, plan for business transitions and put vacant spaces to productive use.
About Empower Rural Iowa grants
Administered by IEDA’s Center for Rural Revitalization, Empower Rural Iowa grants are funded through an appropriation from the Iowa Legislature for the Governor’s Empower Rural Iowa Initiative. Applicants are required to provide matching funds and are evaluated on economic need, partnerships, project readiness and alignment with strategic goals.
The grants support Iowa communities with fewer than 20,000 residents that are not adjacent to cities of 40,000 or more.
To learn more about Empower Rural Iowa programs, eligibility requirements or upcoming grant opportunities, visit the Center for Rural Revitalization webpage.