ZenniHome, a manufacturer specializing in modular housing, has closed its operations in LeChee, near Page, reportedly due to funding that was withheld and a project reduction by Navajo Nation administration, resulting in the layoff of 210 employees.

ZenniHome was notable for being the only high-tech housing manufacturer operating within Navajo Nation boundaries. According to the company, the loss of funding and a significant reduction in their planned project—from 160 homes down to 80—contributed to the factory’s unsustainable operations, ultimately leading to the shutdown.

The funds for the LeChee factory was to come from two grants provided by Navajo Nation, one in the amount of $24 million to go directly to Zennihome for building the factory and another in the amount of $24.9 million that was awarded to Indigenous Design Studio + Architecture, LLC (IDSA), an architectural firm based in Albuquerque, which subcontracted to ZenniHome in the amount of $22 million to construct the 160 homes before the Navajo Nation reduced the contract by half.

Once efforts already began, Navajo Nation withheld the $24 million, with President Buu Nygren addressing public concerns about financial transparency in a press release. He stated that the funds were to be awarded to expand its facility but the payment was terminated before any funds were distributed due to community objections. Nygren affirmed that these funds remain secure within Navajo Nation accounts.

In response to the outcome Nygren stated, “Over 200 skilled Navajo workers have been laid off. They lost stability, a steady paycheck and the pride that comes from building homes for our people, right here on Navajo land.” He said that immediate measures have been taken to support affected workers, including job placement assistance and counseling services. Additionally, his administration is examining potential new tenants or transitional uses for the vacant LeChee facility to restore jobs and economic momentum to the area.

ZenniHome is proceeding with opening a new manufacturing facility in Snowflake, separate from the LeChee operations. The Snowflake facility is slated to begin operations shortly creating more than 1,000 jobs when it becomes fully operational but the fate for the home manufacturer on the Navajo Nation remains unclear.