BFC to investigate potential misuse of ARPA housing funds

By Donovan Quintero | Jul 13, 2025 | News |

WINDOW ROCK

The Navajo Nation Council is investigating whether $24 million in federal COVID-19 relief funds were improperly awarded through a housing initiative involving ZenniHome. On Saturday, Delegate Shaandiin Parrish, the chair of the Budget and Finance Committee, introduced Legislation No. 0174-25, calling for formal hearings to examine how the funds were used and whether Navajo laws were followed.

According to a press release from the Council, the funding, drawn from the American Rescue Plan Act, was announced by the president’s office in March 2024. At the time, the president’s office described the allocation as a grant to ZenniHome, a modular home manufacturer, to build housing for Navajo families, elders, and veterans.

Navajo Times | Krista Allen
A pair of Diné workers make gauge steel for a ZenniHome structure inside the company’s factory at the decommissioned Navajo Generating site in LeChee, Ariz. Dec. 9, 2022.

The press release states the president’s office later referenced a contract with a different company, Indigenous Design Studio + Architecture LLC, which reportedly subcontracted ZenniHome to carry out the housing work.

The speaker’s press release further states that Council members and standing committees, including the BFC, received oral and written reports from Navajo officials, employees, and community members alleging that the contracts and payments associated with ZenniHome and Indigenous Design Studio did not comply with Navajo Nation laws, regulations, or procurement policies.

The Budget and Finance Committee characterized the information as credible and worthy of investigation.

“This is about fiduciary responsibility and taking steps to restore public trust,” said Parrish, who sponsored the legislation. “The Navajo people deserve to know how their money is being used.”

The Council’s investigation centers on whether the Executive Branch followed the procedures outlined in Executive Order No. 06-2023, signed by President Buu Nygren in August 2023. The order established detailed guidelines requiring a standardized review process for all contracts, agreements, and documents involving financial obligations to the Navajo Nation, including those funded by ARPA.

Under the order’s guidelines, agreements with a financial impact must be reviewed by several key offices: the Attorney General’s Office for legal sufficiency, the Management and Budget Office, and the Controller’s Office for budget compliance and fund verification, as well as the Business Regulatory Department if procurement is involved. The guidelines mandate that reviewers complete evaluations within two to five working days, depending on the office, and require proper documentation of any subcontracting arrangements.

If the reviewers fail to act within the allotted time and the sponsoring entity has complied with all documentation requirements, the document may proceed. However, failing to follow these steps or disclose subcontracting arrangements could violate the Executive Order and Navajo Nation law.

The Council’s concerns stem in part from the housing contract’s layered nature. Although the funding was initially described as a grant to ZenniHome, the actual contract was reportedly awarded to Indigenous Design Studio, which in turn subcontracted with ZenniHome. The speaker’s office stated that this structure may have obscured who was directly receiving and managing the federal funds.

Navajo Times | Krista Allen
Incomplete ZenniHome units sit inside the ZenniHome factory in LeChee, Ariz., on March 7, 2024. The steel comes from the former Navajo Generating Station.

The investigation will examine whether the Executive Branch followed the required legal, financial, and procurement reviews before executing the $24 million contract and whether the housing project met its intended goals.

Delegate Carl Slater, the Budget and Finance Committee vice chair, on Sunday referenced the committee’s Monday morning meeting regarding the allegation, which is a continuation of a “special meeting” regarding the matter that began on July 8.

Under Title II of the Navajo Nation law, the BFC has the authority to oversee the Nation’s budget, finance, contracting, and audit activities. The new legislation empowers the committee to issue subpoenas, compel testimony, and obtain documentation from any agency or contractor involved in the ZenniHome deal.

If wrongdoing is confirmed, the Council could recommend recovery of funds, disciplinary action, or revisions to the housing initiative. The findings may also lead to broader reforms in how the Executive Branch manages federal funding.

“The intent of the ARPA funds was to help our people,” the speaker’s office stated. “This investigation is about making sure that promise is kept and that every dollar goes where it was meant to.”