Navajo jobs, housing in limbo as ZenniHome closes LeChee factory amid political turmoil

CANYON POINT, Utah

ZenniHome, the modular housing manufacturer once heralded as a partner in solving the Navajo Nation’s housing crisis, has shut down its LeChee, Arizona, factory, dealing a blow to more than 200 workers and derailing plans for culturally responsive homes designed for Diné families, elders, and veterans.

In a press release issued Monday, the company cited “contractual breaches, delays, and political interference” as the driving forces behind its decision, saying the combined setbacks have led to over $47 million in unrecoverable losses. The final blow came with a $22 million contract reduction on July 3, which followed the cancellation of a previously allocated $24 million grant in June 2024.

“ZenniHome entered this partnership committed to serving the Navajo people by creating jobs, building homes, and promoting self-sufficiency,” said Bob Worsley, the CEO of ZenniHome. “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,” he said.

The closure comes as the Navajo Nation Council launches an investigation into whether $24 million in federal COVID-19 relief funds were improperly awarded or administered under the housing initiative. On Saturday, Delegate Shaandiin Parrish, the Budget and Finance Committee chair, introduced Legislation No. 0174-25, calling for formal hearings and subpoena power to examine whether Navajo Nation laws and procurement policies were followed.

Speaker Crystalyne Curley on Monday, July 14 responded to the company’s exit.

“The Navajo Nation Council appropriated these funds with one purpose in mind, to provide homes for Navajo families,” Curley told the Navajo Times. “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.”

She added, “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.”

The LeChee facility was central to ZenniHome’s partnership with the Navajo Nation. Designed to provide both employment and urgently needed housing, the factory was staffed almost entirely by Diné workers and produced steel-framed, energy-efficient homes under the Hóóghan Zhóní brand, designs rooted in Diné culture.

ZenniHome complied with all Navajo Nation legal, administrative, and financial review processes, including the 164 review, the controller’s office, and the Department of Justice, according to Worsley.

“ZenniHome took great care to comply with every applicable regulatory, business, and procurement provision, ensuring full transparency and adherence to tribal protocols before moving forward with work,” the company stated. “This extensive process was followed not only to meet legal requirements, but also out of deep respect for the Nation’s governance structure and sovereignty.”

But those efforts were hampered by what the company describes as persistent delays and instability. Among the key challenges: a five-month gap between the contract award and the release of initial funding; workforce turnover exceeding 150% annually; and preferential treatment toward competing vendors that had no local hiring requirements.

The company stated that despite being cleared to begin work, it often did so without reimbursement. The original plan, 160 homes for $44 million, was later cut in half, both in budget and scope. On July 3, the Navajo Nation reduced ZenniHome’s work order to just 80 homes for $22 million.

ZenniHome offered the Nation full ownership and control of the factory to preserve jobs and continue operations, but the offer was declined, Worsley said.

“We deeply regret the impact on our employees and families waiting for homes,” he 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.

“No company can withstand this level of political, contractual, and financial instability,” Worsley added. “Our priority now is protecting our business and fulfilling commitments to investors, stable partners, and employees.”

While ZenniHome is ceasing operations in LeChee, the company stated it remains open to working with the Navajo Nation from another facility if a path forward can be found in good faith. The company emphasized its broader mission of providing sustainable, culturally grounded housing in underserved communities across the U.S.

As Council hearings begin, the fate of the LeChee factory and the families it was meant to serve remains uncertain. The investigation is expected to scrutinize whether the Executive Branch adhered to Executive Order No. 06-2023, which requires detailed contract and subcontract reviews before public funds are disbursed. The findings could lead to restitution, disciplinary action, or changes in how the Nation 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.”

 

Clarification, July 14, 2025 at 1:16 p.m.:
This story has been updated to include comments from Speaker Crystalyne Curley.

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