KSLA INVESTIGATES: Dream Home Nightmare

SHREVEPORT, La. (KSLA) - Carlton and April Washington embarked on the journey to build their home in April 2023. They were initially excited. However, their path to homeownership quickly veered off course.

“This is our house that we were supposed to be in two years ago, but dealing with PhD Homes, we’re still not in it yet,” the couple lamented.

In March 2024, the Washingtons received a letter from PhD Homes LLC, notifying them of their contract’s termination. The couple states this was tied to a payment dispute over the final withdrawal, despite significant work remaining incomplete.

Beyond the unfinished construction, the Washingtons discovered serious issues, including exposed electrical wiring. A private inspection revealed a 30-page report detailing numerous services required to bring their home up to code.

One glaring example involved the stairs in the couple’s bedroom. “And the code for stairs I think, is 11 inches, foot for the space,” said Carl as he showed the stairs in his nearly one-million-dollar home. “And here we have 6. So, we have to tear all this out, banisters and all, just to try and fix what PhD Homes did here. But we were charged for this!”

Their dream home quickly transformed into a financial and emotional burden.

“One day, we got a letter in the mail saying the lumber company had put a lien on our land, and we were like, ‘A lien? for 130 thousand dollars,” said Carl. “And when we called around, we learned that because the lumber company dropped off at our house and it wasn’t paid for, they can put a lien on our land for the lumber.”

This unexpected lien has effectively held the Washingtons’ property hostage, making it difficult to sell or refinance due to a debt they did not directly incur.

The Washingtons’ are not alone. Brittany Mullone, another client, said she also used to the same contractors.

Her husband had hired Palmer Hall, LLC in 2023 for work on his automotive business. Mullone described the construction as unfinished and poorly executed, leading to significant financial losses.

“Here’s a picture of our women’s bathroom. And the sink fell out the wall. No one was in the bathroom at the time,” Brittany recounted, stating further issues included peeling paint on the floor.

“Here, you’re going to see the paint is peeling off our floor,” said Mullone. “They had the floor guy come out 3 different times, and he still did not complete. And that’s just not the only spot. That’s our entire back area!”

Our investigation into PhD Homes LLC and Palmer Hall, LLC revealed details regarding their licensing.

According to the Louisiana State Licensing Board for Contractors, Rickey Terrell Hall and Justin Palmer are the owners of PhD Homes, LLC.

Records indicate that at the time the Washingtons signed their contract, PhD Homes LLC only possessed a commercial license, lacking the required residential license. The residential license was not obtained until May 11th, 2023, approximately one month after the contract was signed. However, they were licensed when they began construction on the Washington home in July 2023.

Brittany Mullone’s husband entered his contract with Palmer Hall, LLC on February 28, 2023. While Mullone provided copies of checks she states were signed by PhD Homes, LLC, her contract was with Palmer Hall, LLC. Both businesses, however, are connected to Rickey Terrell Hall.

Further investigation with the state’s contractor licensing board found no record of proper licensing for Palmer Hall, LLC. Despite this, Palmer Hall, LLC is listed on the State’s Secretary of State website as being managed by Rickey Terrell Hall and Justin Palmer.

Facing limited funds, the Washingtons are now left to fix the numerous issues themselves.

“The bank did not give us any more money, so we asked the bank if we could use the last withdrawal that was left, and they left us with one withdrawal left,” said Carl. “They bid our home for 820 thousand dollars. That 150 thousand dollars left, we had garage doors to do, electricity to finish, we had to double pay the electrician because he had not been paid to finish the job. The plumbing work, we pretty much did it ourselves to try and save some money.”

Despite not being licensed for such work, the couple feels they have no other option. “All that money is gone to waste,” said Carl. “What we’re left with is not a dream, but a nightmare.”

The Better Business Bureau (BBB) reported that a complaint was filed against PhD Homes, LLC in June of this year. After the BBB attempted to investigate, no response was received from PhD Homes, LLC, leading to their letter grade being dropped to a ‘C’.

“Fix your wrongdoing. We would be satisfied. We just want to be in our dream home with no headaches. We just want to live freely. And that’s what I want to say, if you can fix it, fix it,” Washington said.

Expert Advice from the Better Business Bureau:

Contracting disputes are a common issue nationwide, according to the Louisiana Better Business Bureau. They offer the following crucial advice before signing any contract:

• Research your contractor at bbb.org and look at letter grades.
• GET MULTIPLE BIDS. The BBB recommends at least three bids to establish a reasonable cost range for your project.
• Ask for recent references from contractors.