Iowa Tax Credits Turn Old Schools Into Housing

Owners of vacant historic buildings across Iowa may find state tax credits can help fund rehabilitation into affordable apartments.

Updated on Nov. 4, 2026 in Commercial

Weathered red-brick former schoolhouse with tall windows on a quiet tree-lined street under warm late-afternoon light. — Owners of vacant Iowa buildings can use state historic preservation tax credits to fund rehabilitation into affordable apartments, including Burlington's former Apollo Middle School. AI Illustration. Upload story photo >

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Should local governments use public tax credits to convert vacant old buildings into housing?

The Iowa Economic Development Authority awarded more than $18 million in Iowa Historic Preservation Tax Credits to revitalize historic buildings across the state. Among the projects, the vacant former Apollo Middle School in Burlington will be converted into 45 affordable one and two bedroom apartments for residents 55 and older.

Why it matters

The awards put state tax credits behind reuse of older buildings, which can add affordable rental stock without new construction. For Iowa households, the projects show how vacant public buildings can return to housing use as local governments and developers pursue rehabilitation.

The three-story former Apollo school will hold 45 affordable one and two bedroom apartments for residents 55 and older. Buildings in Des Moines, Dubuque, Iowa City, Waterloo and Ottumwa also received funding for similar projects.

The players

Iowa Economic Development Authority

The state agency that administers economic development programs, including the Iowa Historic Preservation Tax Credit program that funded the awards.

Preservation Iowa

A statewide nonprofit that tracks at-risk historic buildings through its Most Endangered Buildings list.

The details

The rehabilitation is funded through the Iowa Historic Preservation Tax Credit program, which the Iowa Economic Development Authority administers. The City of Burlington acquired the vacant Apollo Middle School in 2015 after years of neglect and unpaid back taxes. The school overlooks downtown Burlington from the Saunderson Heights neighborhood.

1998: City comprehensive plan first acknowledged the city's efforts to revitalize the school.
2015: City of Burlington acquired the school after neglect and back taxes.
2017: Apollo School was listed on Preservation Iowa's Most Endangered Buildings list.
November 3, 2026: IEDA announced the more than $18 million in tax credits.

The Home Front

The Iowa Historic Preservation Tax Credit program is the state mechanism behind this round of awards. Adaptive reuse of older public buildings into rental housing is becoming a way to add units without new construction.

If you rent in or near Burlington or the other listed cities, watch local notices for leasing details on the new apartments. Homeowners in older buildings can ask a licensed contractor or your local historic preservation office whether tax credit programs apply to their property.

The takeaway

Older buildings like former schools can be turned into needed rental housing when state tax credits help cover rehabilitation costs. If you are considering renovating a historic property, consult a licensed architect or contractor and your local historic preservation office before starting work.