A bill for an act creating a vacant school building demolition grant program and fund, and including contingent effective date provisions.

HF 517 creates a state grant program to fund the demolition of vacant school buildings owned by small Iowa communities. It targets buildings that became unused before January 2021, were previously used as schools, and are located in cities/towns with under 2,500 residents or in one of Iowa’s 88 least-populated counties. Grants are awarded competitively, prioritizing the smallest communities, with funds administered by the economic development authority. Property owners aren’t required to sell land after demolition, but any sale proceeds (minus demolition costs) must return to the grant fund. The program requires annual reporting and takes effect July 2025 if funding is approved.