The credit crisis has stalled construction of the Wolf Creek co-housing village in Grass Valley, a local victim of the national problem.

Grading and paving of two roads planned for this fall at the condominium project will have to wait until next spring, said project manager Rhonda Herrin. The project is on sound financial footing, however, and set to go forward.

“We were already in a race for the raindrops here,” said Herrin, referring to the much-anticipated co-housing project at the corner of McKnight and Freeman Lane.

Construction projects nationwide have screeched to a standstill until the implications of a newly adopted bailout become better known.

“The financial markets began to falter much more significantly than anticipated, and our lender decided to hold tight until the credit markets begin to loosen,” said Kathryn McCamant, president of CoHousing Partners LLC.

On Friday, the House of Representatives approved the $700 billion rescue bill and President Bush signed it into law. The House voted down a similar bill on Monday, causing the largest single-day point drop in the Dow industrials.

Though delayed, the project is not in jeopardy of unraveling, according to project managers.

Construction lender, First Community Bank, issued a letter of commitment for the construction loan, and contractor Gray Construction remains dedicated to the project, Herrin said.

Planning and permitting is completed, and county and city fees have been paid.

The project’s financial security comes from a longtime relationship with the lender on other projects, as well as strong backing from 22 co-investors who want to be residents of the Wolf Creek Lodge, Herrin said.

“It would be different if we were a traditional development company,” Herrin said. “With co-housing, we work in partnership with future residents.”

Wolf Creek Lodge is a 30-unit condominium project meant for active adults more than 50 years old.

Many members invested 5 percent in the project two years ago and meet monthly to discuss the future community or socialize at potlucks.

“There’s disappointment in the delay, because we’re looking forward to moving in,” said Butch Thresh, who committed to the project with his wife two years ago.

The couple, who are in their 70s, look forward to downsizing and living closer to town.

Thresh’s bank changed hands twice this week, a sign of the tough economic times.

“Things are happening at such a pace, you don’t know how long it’s going to take to shake out,” Thresh said, adding that he is confident that the project will go forward.

Still, Thresh is concerned the delay could drive up the pricetag of construction.

“The longer you wait, the more it drives up prices a bit,” Thresh said.

On the upside, the delay will buy time for homeowners who have to sell their homes before moving into the condos, Herrin said.

Besides the lodge, the eight-acre property also will include the family friendly Wolf Creek Commons, similar to Nevada County Co-Housing.

Soil erosion measures will continue this fall on the site that was cleared of timber earlier this year, Herrin said.

To contact Staff Writer Laura Brown, e-mail lbrown@theunion.com or call 477-4231.