HOUSTON — A Houston homeowner called KHOU 11's Grace White for help after getting a $1 million bill in the mail that threatened to put a lien on her home.
KHOU 11 has learned this woman isn't alone. Other people are getting this letter too. The confusing part is it's an invoice to the City of Houston, but it is homeowners who are getting it in the mail.
"When I saw the money, I just freaked out," Maria Garcia said.
She couldn't believe what she got in the mail. It's a letter addressed to her, with three invoices for more than $1 million of water line repairs.
"We did have water leaks in our neighborhood, and this was done through the City of Houston, everyone called, not just me – my neighbors," she said. "This just doesn't sound right."
If you received a letter like this
Homeowners should contact the City’s Inspector General at 832-393-6509 or complete the OIG Complaint Online form.
KHOU 11 called St. Harlem Construction, the company's name on the top of the invoice. The owner said the city hired her crews last year to do emergency water line repairs but was never paid. She declined an on-camera interview.
When KHOU 11 asked why it was now sending the bills to residents, an attorney for the construction company said, "The letters were sent as notice that St. Harlem was not paid, and neither St. Harlem nor AmeriFactors expects any payment from the property owners." He issued the following statement:
"In late 2023 emergency struck Houstonians. Due to widespread drought, soil shifted and water pipes broke across Houston. The City needed fast, effective repairs or Houstonians would lose access to drinking water. Houston needed quick help. St. Harlem Construction answered.
"St. Harlem is a small, locally owned construction company with a track record of integrity and solid performance. In response to a City 'Emergency Purchase Justification' - signed off by two City officials and issued pursuant to the City's normal procurement procedures - from October through December, 2023 St. Harlem provided more than $1 million in prompt, effective emergency repairs at the City's direction to keep Houstonians' water running. Most of the services St. Harlem subcontracted out - which means St. Harlem must pay those amounts to other locally-owned subcontractor businesses.
"St. Harlem and its subcontractors did their jobs. The City did not. Instead of any payment, St. Harlem received nothing more than thin assurances the City will honor its promise and shifting stories about why the City will not. The City's refusal to honor its contracts forced St. Harlem and other Houston businesses to protect their legal rights or face financial catastrophe. In fact, one of St. Harlem's subcontractors recently filed suit against the City last week related to the same issues. And protecting those legal rights required sending notices to the addresses where St. Harlem provided services.
"The City promised to pay St. Harlem for the services provided. The City received the services, but refuses to pay. If the City will not pay these voluntarily, St. Harlem will have no choice but to force it do so in Court."
AmeriFactors Financial Group is a company in Orlando, Florida. A spokeswoman confirmed to KHOU 11 it mailed the letters and sent KHOU 11 this statement:
"The apparent political strife is harming legitimate small businesses that are providing important work to the City and its citizens. We are supporting these small businesses – St Harlem in this instance - by sending notices designed to protect our client’s legal right to payment. This isn’t the way we would like to collect payment, but the City’s refusal to communicate about when payment will be made is leaving us with very few viable or timely options except to let the property owners know that business haven’t been paid for their work."
"I looked through these letters, I don't think they are legal," said Dana Karni, with Lone Star Legal Aid. "They are used in a manner that's pretty threatening and are meant to eke money out of unsuspecting homeowners."
Karni said federal law protects consumers from unfair debt collection.
"Be really careful who you are talking to before you respond in a way that may put you on the hook for something you were never on the hook for to begin with," she said.
Garcia said she was not paying a dime and said the whole thing left her rattled.
"The other thing I thought, yeah my age, they are probably thinking she's an old lady, she doesn't know any better, she's probably going to try to pay us – not this 70-year-old lady," Garcia said.
KHOU 11 reached out to the City of Houston and City Attorney Arturo Michael sent us this statement:
“The City was made aware of homeowners being threatened with the placement of liens on their property by contractors who were engaged by the City to repair water line breaks on public property. These liens are unlawful and the City urges affected homeowners not to pay them. The City will vigorously contest any attempt by a company to place a lien arising from City-authorized repair work and will seek court intervention, if necessary, to have these illegal liens removed. Homeowners should contact the City’s Inspector General at 832-393-6509 or complete the OIG Complaint Online form."
District I Council Member Joaquin Martinez, who represents Garcia's district told KHOU 11 he's outraged by the company's baseless claims.
"My office has been in communication with the city’s Legal Department and Houston Public Works to get to the bottom of this, and to help protect residents from intimidation tactics by this company," he said. "To any District I constituent impacted by this, please don’t hesitate to contact my office for support.”
If you have a problem and need help, email GraceCanHelp@khou.com, call (713) 521-HELP or fill out the form below.