Despite being hard hit the crisis in the housing market and resultant economic contraction, Issaquah’s heralded zHome project is still seeking a way forward in the Highlands.

The $5 million, 10 townhouse complex is set to be one of the nation’s first zero-net energy neighborhoods, and is seen as the ‘poster-child’ of green building developments not just in the state but across the country.

Construction was scheduled to begin last September, but was delayed when previously secured funding fell through.

Earlier this year there was hope that the project would receive federal stimulus funds after President Obama signed a bill that included $60 million for energy projects in Washington state.

zHome Project Manager Brad Liljequist told The Reporter this week that the stimulus funds had taken longer than they had hoped to materialize.

“Essentially what happened was that Congress signed the bill but they didn’t arrange the process for it to happen,” he said. “Much of that is still being formulated.”

Liljequist said that the zHome proponents were no focusing their efforts on securing a loan guarantee from the state or federal government.

“We see this a really viable model,” he said. “The expectation there is that it wouldn’t cost the government anything – the guarantee would just be there as a backstop.”

Liljequist said that this would allow the development to proceed as an independent, market rate project, rather than being backed by a government agency and so tied to any government requirements, such as being used as a demonstration project.

He said that loan guarantee programs were being put together by at the state and federal level at present.

“Obviously we would like to get moving immediately, but we are captive to the timeline of the (loan guarantee) programs,” Liljequist said. “Hopefully over the summer we can make some progress.”

The project manager is also looking into ways to attract private investors to help fund the development.

“We’re looking at the possibility of pre-selling the units,” he said. “What we would be looking for would be buyers that would come in with a big chunk of money, somewhere around six figures, and they would essentially become co-investors. I still think there are people out there who have the financial wherewithal to make it happen, who believe in the design, believe in the concept, and are excited about the project.”

For more information on zHome, go to www.z-home.org.