Arlyssa D. Becenti
Arizona Republic
ZenniHome was meant to be a solution to the Navajo Nation’s housing shortage, but just over a year after the Phoenix-based company secured a 75-year lease at the former Navajo Generating Station site near Page, the company announced it would shut down operations.
The decision to close the LeChee site came after a year of contractual breaches, delays and political interference that caused over $47 million in unrecoverable losses for the company, according to a ZenniHome news release sent out July 14. The latest setback was a $22 million contract reduction on July 3.
The release said the closure directly affects more than 210 employees at the LeChee facility, the vast majority of them Navajo citizens. The original plan was to build a factory on the power plant site and assemble the modular homes, which would be moved to sites around the Navajo Nation.
As of July 4, there were no signs of the company’s imminent closure — its Facebook page featured a positive post highlighting ongoing work with the Navajo Nation.
“Powered by Navajo hands. Rooted on Navajo land. Together, we’re building the most productive housing factory in the world — and rewriting what opportunity looks like,” the post said.
Bob Worsley, CEO of ZenniHome, said the company entered the partnership “committed to serving the Navajo people by creating jobs, building homes and promoting self-sufficiency,” he said. “We designed culturally responsive homes tailored for the Nation and built a workforce composed of Navajo citizens.”
“Unfortunately, our efforts were met with broken promises, political infighting between the executive and legislative branches that led to ZenniHome being a political football, and bureaucratic dysfunction that made it impossible to continue,” Worsley said.
The company had been slated to receive around $70 million in grant funding intended to benefit the Navajo Nation, but then rumors began to circulate about the company folding. Amid those rumors, the Navajo Nation Council’s Budget and Finance committee drafted legislation over the weekend calling for an investigation into ZenniHome.
The committee had received both written and verbal reports from Navajo Nation officials, employees and community members indicating that contracts involving ZenniHome and Indigenous Design Studio + Architects — including those related to procurement, payments and other transactions — may not comply with Navajo Nation laws, regulations and policies, according to the legislation.
Based on the information presented, the committee concluded that the concerns regarding ZenniHome and Indigenous Design Studio + Architects were credible and needed further investigation. The legislation also said the committee will hold an investigatory hearing “to determine whether contracts, including procurement, payments, etc., for modular housing entered into by the Navajo Nation with ZenniHome, Indigenous Design Studio + Architects, and other vendors complied with Navajo Nation laws, regulations, rules, and policies.”
The hearing will be held by Aug. 31.
“The Navajo Nation Council appropriated these funds with one purpose in mind, to provide homes for Navajo families,” said Crystalyne Curley, Speaker of the Navajo Nation, in a statement to The Arizona Republic. “Now that ZenniHome announced its closure of their operations in LeChee, it only adds to the questions surrounding the company.”
“I stand with my colleagues in demanding full financial accountability in relation to the contracts and how the funds were used and perhaps misused,” Curley said. “There are too many unanswered questions about the contracts and contracting process involving ZenniHome. The Navajo Nation Council is now exercising our legislative authority under Title 2, through the standing committee oversight, to get the answers our people deserve.”
In March 2024, the Navajo Nation awarded a $24 million grant from the American Rescue Plan Act to ZenniHome. This was in addition to the $50 million Navajo Nation’s Community Housing and Infrastructure Department grant to provide a minimum of 250 modular ZenniHomes to high-need residents all across the Navajo Nation.
This partnership was lauded by Navajo President Buu Nygren as “a significant step forward to achieve our 1,000-home initiative. These homes will be built on Navajo, by Navajo, and for Navajo.”
A 2011 Navajo Nation Housing Report concluded that 90% of all Navajo Nation housing is in need of replacement or major repairs. The Nation needs as many as 34,100 new homes to meet its need for new housing. The report also found that more than 34,300 existing homes need repairs.
According to ZenniHome, the partnership with the Navajo Nation was far from smooth. The company said it followed the Navajo 164 review process at every step. All contracts and funding requests, officials said, went through the required administrative, legal and financial reviews, including formal approvals from the Navajo Nation Department of Justice and the Office of the Controller.
ZenniHome emphasized that it took great care to comply with all relevant regulatory, business and procurement requirements, maintaining transparency and honoring tribal protocols throughout the process.
A five-month delay between contract award and initial funding forced ZenniHome to start work without reimbursement.
Workforce turnover exceeding 150% annually, impacting project continuity.
Delays in home site selection and perceived favoritism toward competing vendors getting site selection first, with the competing vendors following no local hiring requirements.
Political interference reducing the planned work order from $44 million for 160 homes to just $22 million for 80 homes.
Key challenges included:
These issues culminated in a $22 million financial loss last week, combined with the cancellation of a previously allocated $24 million grant in June 2024, forcing the company to cease operations in LeChee, said ZenniHome.
“We deeply regret the impact on our employees and families waiting for homes,” Worsley said. “We remain proud of the homes we designed and have built to date, and the team we assembled. ‘Built on Navajo, by Navajo, and for Navajo’ reflected our commitment.”
ZenniHome offered to let Navajo Nation take over operations, but the Nation refused.
Worsley added, “No company can withstand this level of political, contractual, and financial instability. Our priority now is protecting our business and fulfilling commitments to investors, stable partners, and employees.”
In a July 14 social media post, Nygren said his administration sent staff to LeChee to provide support, including counseling, job placement and access to additional resources.
“We’re also beginning the process of evaluating the facility itself,” he wrote. “This is a prime asset that must not sit empty. We’re working to identify a new tenant or transitional use that can bring jobs and momentum back to the community.”
Nygren said the original plan for 160 homes was cut in half, and with that decision, the company could no longer sustain operations. He said he remained committed to ensuring all 160 homes are delivered to Navajo families.
“But right now, our priority is the 200 families affected by this loss,” Nyrgen said. “We owe them more than words — we owe them action.”