Turning an old hotel into homes is a different kind of job than building new. In Des Moines, a former hotel is about to get that treatment, and a historic building in Dubuque is getting some work of its own.
On Oct. 7, the Iowa Finance Authority Board of Directors awarded more than $6.4 million to support the development and rehabilitation of 42 housing units, plus supportive services, for Iowans who are homeless or at risk of homelessness. According to the state's announcement, the money comes from the federal HOME-American Rescue Plan program, known as HOME-ARP.
"Expanding housing options for Iowans overcoming homelessness and other challenges is an essential part of our mission," said IFA Director Debi Durham.
Des Moines: Beacon Village Phase II
The bigger award, $4,400,003, goes to Beacon Village Phase II. The developer is Kiernan Development & Construction LLC.
The project will transform an underused former hotel at East 14th Street and Euclid Avenue in Des Moines into 32 new affordable homes. It builds on The Beacon's work helping women rebuild their lives after incarceration, homelessness and substance use challenges. Twenty-eight of the homes will serve HOME-ARP qualifying populations. The state says the project will expand access to stable housing and support for women pursuing recovery and greater independence.
The award breaks down like this:
- $4,169,279 for unit development.
- $150,000 for supportive services.
- $80,724 for nonprofit operating costs.
"The award announced today will allow us to support more women and other community members who are courageously rebuilding their lives after homelessness, addiction, incarceration, domestic violence and other trauma," said Amy Landrigan, CEO of The Beacon. "Each new housing unit represents an opportunity for someone to heal, reclaim their independence and build the future they deserve."
KCCI reported that construction is set to start in February 2027. The station has also reported on The Beacon's efforts to expand amid a growing waiting list.
The state's announcement lists Kiernan Development & Construction as the developer, but neither the state nor KCCI named a separate general contractor for the construction work.
Dubuque: Henry-Stout senior apartments
The second award, $2,029,516, goes to Henry-Stout, LLLP for the Henry-Stout House ReHousing Rehab in downtown Dubuque.
The project will rehabilitate 10 housing units at Henry-Stout Senior Apartments, which are in the historic former YMCA building, and expand supportive services for HOME-ARP qualifying populations. The state says the reinvestment will give new life to existing affordable homes and help seniors keep stable, affordable housing while preserving a piece of downtown Dubuque's history. It also says the rehab will preserve the building's role as a place of community and connection and contribute to the vitality of downtown Dubuque.
That award breaks down to:
- $1,503,622 for unit development.
- $525,894 for supportive services.
No contractor has been named for the Dubuque rehab either.
HOME-ARP was created by the American Rescue Plan to reduce homelessness and increase housing stability. The IFA was allocated about $29 million in HOME-ARP funds as a one-time allocation, according to the state. The program helps people who are homeless or at risk of homelessness and other vulnerable groups with housing and supportive services.
"These projects build on the good work local partners are already doing to help Iowans rebuild their lives," Durham said. "A safe place to call home and someone in your corner can make it possible to look ahead with hope, and we're proud to support these efforts."
Why it matters for Contractors
These awards add up to more than $5.6 million in unit development money across two projects, and that's real work for Iowa contractors. The Des Moines hotel conversion is a big interior job, with work for framers, plumbers, electricians, HVAC crews, drywall and finish trades. With construction in Des Moines set to start in February 2027, there's time to get on the developer's radar. The Dubuque rehab is smaller but calls for crews who are comfortable in historic buildings. Since both rely on federal HOME-ARP dollars, contractors who know how to handle federal paperwork and requirements will be better positioned. Neither project has a publicly named general contractor beyond the developers listed by the state, so interested builders and subs should reach out to Kiernan Development & Construction and the Henry-Stout ownership team.