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Waco woman wants answers from city after confusion over housing loan

Melissa Smith received a grant from the Waco Housing Services Department to fix fire damage on her house.

WACO, Texas — A fire in May 2019 badly damaged Melissa Smith's home. She said one room was destroyed and several others had smoke damage. 

Later that year, when a new government grant to repair fire damage became available through the Waco Reconstruction Loan program, she jumped at the opportunity and was approved. 

The Waco Housing Services Department facilitated the loan and the city approved Target Restoration Services to start the job in June of 2020. 

Smith said the contractor started on June 3rd. Three months later, Smith was still trying to find out if the job would be finished, if Target was paid, and how much they were paid.

Smith's confusion started with the estimate Target Restoration Services completed for the job in late February. 

The estimate included a $7,620 charge for plumbing. Under that charge it states, "The above line item is for worst case. This price is to replace all plumbing under the slab." 

Smith said the company never replaced plumbing under the foundation slab, only in the front yard and one place in the back yard. 

It also lists more than $613 for electrical work along with $271.57 for smoke detectors and a carbon monoxide detector which had not been installed.

All the painting and flooring work did appear to be completed. The project total on the estimate was $22,718.

Smith doesn't know if the contractor was supposed to come back out to finish the plumbing or do more electrical work, but she said the company claimed they would not return. 

"This was supposed to be finished by June the 30. It's Sept. 10 and my house is not done," Smith said. "They are saying they are not going to do anymore. That's not acceptable."

Because the work is based on a grant, however, Target Restoration Services is answerable to the City of Waco, not to Smith. Smith said she did not know how much the city paid and what work the contractor was required to do.

"The City of Waco will not tell me what they have paid, how much they have paid. I have asked for receipts," Smith said. 

Raynesha B. Hudnell with the City Housing Department told us Thursday they would work on a response. As of this writing, we had not received a response.

Pete Rusek, an attorney for Target, told us the city was going to answer Smith's questions, and that the city had no issue with the work Target Restoration Services did. 

“City was over there last week, knows that Smith has questions, and is going to respond to those questions,” Rusek said. 

Rusek also said the job total had been changed to $25,165.54 and that his client had only been paid paid $12,582.77. He did not say what they were waiting on to get the rest of the money.

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