- Details
- By Tribal Business News Staff
- Real Estate
Navajo Nation announced it granted $74 million to a privately held company that specializes in sustainable and affordable prefabricated homes. The move is part of an effort to address the critical housing shortage on Navajo Nation, while also creating jobs and boosting the tribe’s economy.
The money will help fund delivery of 250 homes units and the construction of a manufactured housing factory on Navajo Nation, creating around 5,500 jobs in the process, according to a statement.
The grant package to Mesa, Ariz.-based ZenniHome LLC includes $50 million from the tribe’s Community Housing and Infrastructure Department. These funds will be used to deliver at least 250 ZenniHome units to high-need residents across Navajo Nation.
An additional $24 million, allocated from the American Rescue Plan Act, will support the expansion of Zennihome’s production capacity. The company plans to build a second factory at the former site of the Navajo Generating Station near Page, Ariz. The new facility is expected to be completed by the end of 2025, allowing Zennihome to manufacture more than 25 homes per day.
"I expect this to create the highest-producing housing factory in the world," Navajo Nation President Buu Nygren said in a statement. "These homes will be built on Navajo land, by Navajo workers, and for Navajo people."
The ARPA grant will also help ZenniHome secure an additional $36 million in financing for the project. This investment is anticipated to generate over 5,000 indirect jobs and 500 direct jobs. Currently, ZenniHome employs 135 Navajo workers.
The Navajo Nation faces a severe housing crisis. A 2011 report by the Navajo Nation Housing Authority found that a staggering 90% of existing housing units require major repairs or replacement. The Nation currently needs an estimated 34,100 new homes, and this number is likely even higher due to population growth and factors like the pandemic.
"ZenniHome is committed to directly addressing the housing crisis within the Navajo Nation," ZenniHome CEO and Founder Bob Worsley said in a statement. "This partnership will ensure that every family has access to quality, affordable, and lasting homes."
The collaboration between the Navajo Nation and ZenniHome extends beyond immediate housing needs. Both parties expressed commitment to exploring future initiatives focused on housing solutions for the Navajo-Hopi Land Commission, veterans, and individuals overcoming opioid addiction.
This unique partnership marks a significant step towards establishing a new and substantial industry on the Navajo Nation. Key benefits for the Navajo people include priority access to ZenniHome housing units, substantial tax revenue from home sales and business leases, and preferential pricing for the Navajo Nation and individual tribal members.
