The historic Walnut Neighborhood, listed on the National Registry of Historic Places and bordering the northeast edge of downtown Waterloo, has sustained over a decade of demolition of houses due to decay and seen an increase in the disrepair of the remaining houses in the neighborhood. Walnut Neighborhood revitalization efforts are now underway, with Iowa Heartland Habitat for Humanity playing a significant role in the work through partnering with low-income owner occupants in the neighborhood to provide critical home repairs, preventing existing homes from falling into further disrepair. Additionally, Iowa Heartland has fully rehabbed vacant homes in the neighborhood and sold them to new Habitat homebuyers and will build or rehab 12 additional vacant properties over the next three years.

Iowa Heartland Habitat for Humanity co-convened and co-organized the Walnut Neighborhood Housing Coalition (WNHC) in December 2016 as part of the overall neighborhood redevelopment plan to specifically promote fair, decent, affordable, mixed-income, and historically preserved housing and residential development in the neighborhood. In 2024, this group was renamed to the Walnut Neighborhood Alliance. Partners of the WNHC include: Link CCD, the Walnut Neighborhood Association, JSA Development, Iowa Heartland Habitat for Humanity and the Waterloo Community Development office. The WNHC meets monthly to discuss projects and plans in process as well as new directions that need to be taken to continue the housing redevelopment efforts.