One of the nation’s first zero-net energy neighborhoods, Issaquah’s zHome, is the latest project to fall victim to the financial crisis.
Construction of zHome, which was scheduled to begin last September, has been delayed as the builder seeks to secure financing at a time when there isn’t much to be had.
The project will cost an estimated $5 million to complete.
zHome, originally called the Zero Net Energy Project, will be a 10 townhouse complex in the Issaquah Highlands designed to use zero net energy in the course of a year — meaning the homes will produce as much energy as they use.
“The interest and excitement for the project is the same as it always was,” said zHomes Project Manager Brad Liljequist. “We just need to finalize the funding. (The project) was at the top of a lot of banks’ lists in terms of what they wanted to do a loan on, but with this credit market, so many banks have just stopped lending.”
The groundbreaking and ribbon-cutting ceremony for the project took place Sept. 29 — the same day the Dow Jones plummeted nearly 800 points.
Banks that had previously been interested in the project were suddenly shutting their doors.
“In one week, it literally went from, ‘Yes, we’re still interested in it,’ to banks calling us back and saying, ‘Actually, we’re not doing any loans right now,’” Liljequist said.
The project is a collaborative effort between the city of Issaquah, builder Howland Homes, Built Green, King County, Port Blakely Communities, Puget Sound Energy and the Washington State University Energy Program.
The neighborhood will also be carbon neutral, producing zero net carbon dioxide emissions within a year.
The low environmental impact will be achieved through energy-efficient construction practices.
These include using nontoxic salvaged, reclaimed or locally-manufactured materials, and employing solar panels, ground water heat pumps and rain water collection tanks.
The zHomes will use 60 percent less water than the average home, and reduce storm water impact through rain gardens and permeable pavement.
Liljequist said the builder has continued to pitch the project to banks, and that one he declined to name has a “very, very strong interest” in financing about $3 million of the project.
Despite the bleak market, he’s optimistic the remaining $2 million will be covered.
“I’m hopeful … that with the change in the overall climate politically, we might see some of that lending freed up,” he said. “This project meets every public policy goal that everyone is talking about right now, so hopefully we’ll find a candidate.”
The builder has also been looking at sources that are not typically used for construction financing, such as joint ventures, Liljequist said.
The project, originally slated for completion in October of this year, will in all likelihood edge closer to 2010.
“Realistically, (finishing in October) is not achievable at this point,” he said. “We want to do a great job on the construction, so we don’t want to rush it. Our focus right now is to get our financing lined up. That’s job number one.”
