Rural Innovation Grant Program

The Rural Innovation Grant Program – Housing 2.0, administered by the Center for Rural Revitalization within the Iowa Economic Development Authority (IEDA), in collaboration with the Governor’s Empower Rural Iowa Initiative task force, aims to tackle the housing challenges facing Iowa's rural communities. This program is part of the broader Empower Rural Iowa effort and is authorized by the Iowa Administrative Code. It is designed to incentivize and reward innovative and scalable solutions that expand rural housing stock while also leveraging public programs and encouraging private sector investment. The grant provides up to $50,000 per project to support eligible one-time expenses that contribute to meaningful expansion in housing availability. All funds must be incurred and expended within the contract period, which begins upon award and ends June 30, 2027. This is a reimbursement-based program, meaning recipients are reimbursed only after expenses are incurred. A required 1:1/2 cash match is mandatory; for example, a $50,000 grant requires a $25,000 cash match. Eligible match sources include both public and private funds, though in-kind services, loans, unsecured or pending funding, and state government funds used for other matching purposes are not allowed. Applicants must be either city or county governments, federally recognized tribal governments located in Iowa, or federally designated nonprofit agencies and foundations. Projects must benefit Iowa communities with populations of 20,000 or fewer that are not adjacent to cities of 40,000 or more or must be in one of Iowa’s 88 least populous counties. Only one application per lead entity is permitted per funding round, although entities can participate as partners in multiple proposals. Eligible expenses include construction, land acquisition, major renovations, site development, and a range of professional services. Personnel time is eligible if specifically dedicated to the project, but employee benefits are not reimbursable. Ineligible costs include routine maintenance, insurance, travel outside Iowa, employee benefits, training, lobbying, and fundraising. Applications must be submitted via IowaGrants.gov by August 29, 2025, at 4 p.m. CDT. The portal opens on July 1, 2025. Notifications will be made in Fall 2025. The application will be evaluated on a 120-point rubric covering applicant profile, project timing, innovation, implementation, replication potential, sustainability, use of Iowa Profile data, budget justification, and overall clarity and grantsmanship. Competitive projects should be replicable, show cross-sector collaboration, address specific housing needs, and be informed by the Iowa Finance Authority’s Iowa Profile reports. Each claim for reimbursement must be a minimum of $1,000 and include documentation such as invoices, proof of payment, and status reports. All reimbursements are submitted through IowaGrants.gov, and recipients must be in good standing with the Iowa Department of Revenue. For questions, applicants are encouraged to reach out well in advance of the deadline to Sacha Wise, Director of Empower Rural Iowa, at 515-348-6156 or sacha.wise@iowaeda.com.

Competitive proposals should show replicability, strong partnerships, and alignment with Iowa Profile data.