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Rising from Ruin is an on-going MSNBC.com special report chronicling two coastal Mississippi towns, Bay St. Louis and Waveland, as they rebuild after Hurricane Katrina.

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WAVELAND, Miss. -- Terri Johnson loves her city. A third-generation Wavelander, she works in the sheriff’s department while she and her husband raise two teenage boys.

Terri Johnson stands in the ruins of her Waveland home after it was destroyed by Hurricane Katrina.  Click 'Play' below the image to hear Terri talk about her dream home and to see where she hopes it will be built.

She says she wouldn’t live anywhere else, even after Katrina pummeled her family home, flood waters wrenching the seven-bedroom dwelling 10 feet from its base, wiping out memories and her life’s possessions.

“I was just born here, and I just love Waveland,” Johnson, 41, says with a laugh, appreciating the irony as she stands where her front door once opened onto Tippen Street.

Her dad rebuilt the home after Hurricane Camille, when she and her 11 siblings lived in a trailer for nearly six months.

She and husband Delroy, along with Destin, 16, and Dimitri, 13, lived there for seven years; now, the sodden shell awaits demolition.

That, in itself, is not that unusual in Waveland where Katrina cut a broad swath of destruction, especially near the Gulf, and where habitable homes are about as rare as unburdened insurance adjusters.

What’s tragic about Johnson’s story is that she was just about to live her dream: this month, in fact, the family had hoped to move into their new home on Waveland Avenue, five minutes away from Tippen Street.

So close to her dream
“It was a beautiful home, 2,400 square feet, with a two-car garage, three bedrooms, two baths, a living room, a den, a big kitchen and a fireplace,” Johnson recalled as we toured the site on Wednesday.

The house was never built; the builder dumped dirt for the foundation Friday before Katrina struck; the construction was due to begin the following Monday.

Now Johnson is stuck in limbo, party to one of the myriad intractable human dramas that followed the hurricane.

Her builder, according to Johnson, won’t build the house, even though the paperwork has been signed, sealed and delivered to the bank, which is financing the $160,000 purchase.

“I called him after Katrina, and he said it was going to cost $185,000, $190,000 because of the storm,” Johnson said, outrage in her voice.

The explanation, about rising costs of material and labor, didn’t wash with Johnson.

“But when you sign a contract, aren’t you supposed to stick to it? He said he would have to pay the workers more money. That’s not my fault. We did sign the contract.”

Busy builder
Enter Aaron Parker of Aaron Parker Enterprises, the man who sold the quarter acre of land and agreed the build the Johnson’s home.

“I’m not trying to make money out of that lady,” Parker said by telephone, unhappy that anyone would accuse him of gouging customers.

He agrees a contract was signed, and said he would “probably” build the house for the original price – but not now.

Parker explained that even if he could, the City of Waveland is not granting any permits for new home construction.

Moreover, it’s a money-losing proposition right now. “Before Katrina, [workers] were making $12-$13 an hour; now they are making $20-$25. All my best electricians and plumbers are working for FEMA.”

The inflationary market has raised salaries and material. “The price of everything is up,” Parker complained.

He added, “As long as costs come down, I’ll do it [in the spring].”

Small comfort
This was small comfort to Johnson when we called her back late Wednesday. “I wish he would call me and tell me that; he knows my number and he won’t call me back,” she said, with a note of resignation. “We need a home right now.”

The family recently returned from Westpoint, Miss., – a refuge for two months – so that the kids can start  school Monday, and she can return to work as a medical corrections officer with Bay St. Louis sheriff’s department.

Their home, for now, is a too-small FEMA trailer in another part of town.

Their dreams, well, they’ve been postponed.

“I still have hope,” Johnson said earlier when we spoke at where her new home should be standing.

“I think I’m cried out, I’m tired of crying. The guy hurt me so bad; this was our dream … and we’re still going to get it done.”

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78 COMMENTS

One of the important factors that I see missing in some of these reponses is the fact that the builder had already started work prior to Katrina. Whether he dumped the dirt, or had a subcontractor make the delivery, the job was started. We seem to have overlooked that fact.

By showing up for the initial startup of the job clearly indicates that he was going to go ahead with the job and honor the contract. Katrina was already in the news at this time; ignorrance cannot be pled in this case.

Also, any reputible contractor knows that you never start a job without permits......If he was to start on Monday, then he should have already had them. The local government should have some type of record verifing this, and FEMA would be notified. The start date might be delayed, but the overall outcome could still be achieved.

Regarding Ms. Johnson, I strongly suggest that you get some solid legal advice. In addition to the shady requests that your contractor is trying, you might also have some legalities with your construction loan.

There could be a time frame that the contract expires, whether the constuction is completed or not. Some construction loans convert to a regular mortgage after a certain time frame. What you should do is inform your lender that the contractor has refused to live up to the original contract, in which case he cannot try to draw any funds for work/expenses that he claims were completed before the hurricane.

Your contractor would have probably ordered some supplies and will be looking for payment on these materials if the start date was on Monday 8/29/05.

Hopefully some of this will help you and your family. Good Luck and God Bless!

Everyone seems to forget that the bidding process from the very beginning is very competitive. However Ms. Johnson picked this contractor, you can best bet it was his lower bid that got him the job. He is probably a small business with little or no overhead - quite capable of doing a fine quality job, but with few resources in the event of a catastrophe of this nature. Remember, when you hire a Home Depot or a Sears or any other big name business to remodel or build or whatever, what you are paying for is THEIR overhead, their name, their advertising, all the sub-contractors they hire, insurance, etc. A smaller contractor is able to offer you the better price because they don't have all of that to pay for. Yes, he should have written a clause into the contract to protect HIMSELF against the cost of materials changing before he can begin the project, but who could have EVER DREAMED that something of the magnitude of Katrina would have happened. He will lose his a-- if he proceeds with building her home. Would you want somebody forced into that position to build YOUR DREAM HOME?? She(Ms. Johnson) should have had some sort of builder's or homeowner's insurance to cover this type of event - WHY SHOULD IT BE THE CONTRACTOR WHO EATS THE COST, REGARDLESS OF THE CONTRACT? Think of it this way, if you hired an investment firm to handle a trade for you and they all perished in the World Trade Center on 9/11 the morning they were supposed to do your trade, would you hold them responsible? Acts or events beyond our control are just that - beyond our control!!

...and the hits just keep on comin'. I pray Ms. Johnson sees light at the end of the tunnel. This is yet another embarrassing example of how the U.S. government has let its citizens down...again. I hope we all remember Ms. Johnson and the hundreds of Katrina victims like her come election time in '07. It seems like FEMA should really stand for "Failing Every Mistreated American."

I feel for both parties, in this unfortunate situation, but once a contract is signed both parties have to acknowledge the contract. I'm in business and once you sign on that dotted line, come hell and high water you are responsible.

If Ms. Johnson had signed a contract, she would be bound to that contract. Almost invariably the individual is held liable for the terms of a contract they make with a business no matter how extreme the circumstances are. And in fact, the circumstances for this businessman are not extraordinary, he is taking a loss, and that is part of the risk of the business. YOu cannot expect Ms. Johnson to be held to any less if the situation was reversed. Build the house, take the loss, and find a way to recoup them.

I am from Ocean Springs, Ms and my mom and younger sister had only been living in our brand new home for 2 weeks when Katrina hit. My mother had decked out the new house with all the things she had wanted and now most of it is gone. I know first hand it is very hard to grasp these kind of tragic loses but be glad that you still have the house to build and be thankful that you hadn't just finished building it and now it is gone. Be patient with your contractor and pray that your dream home will some day be a reality and not a dream. I'm glad you and your family came out safe. Good Luck and God Bless.

As sad as it may be, when a contract is signed, it is signed assuming that the conditions are normal. It is impossible to consider that a new house can be built when the whole town has been blown away, and contruction must take place while delivering materials by dirt roads, having no water to mix cement, or trying to find the type of lumber you need, at stores that has no inventory, or which has changed the prices of the materials, plus finding that there are no people wanting to work on the project at this moment. The contractor can't provide a guarantee under such unexpected conditions. I am sure that if the contractor is honest, and the customer understanding, they will each give a little and come to an agreeable term in the months to come when things settle a bit.

After reading the comments again, and reviewing Mr. Parker's comment that he is too busy with other work resulting from Katrina, his business is booming I imagine, it has occurred to me that not building Ms. Johnson's house as he is contractually bound to would be unjust enrichment. He is not out of the home construction business. He already started the project, may have ordered the materials (which could have been used by now on other projects he has secured for Katrina repair work), and is not building her house on a timely basis because his company is too busy with other work. If this is the case, it is unjust enrichment. And if Ms. Johnson loses her home construction loan and has to pay penalty costs (like a higher interest rate and accrued interest while the project), those costs could be added to her damages should she enter mediation or file suit. Sometimes it's better to just suck it up and finish the contract; it may be cheaper for the construction company in the long run. The Johnson are the ones with no home and paying rent, apparently (it isn't clear) that Parker is busy with other better-paying construction jobs elsewhere involving Katria recovery.

Everybody pray for Waveland

All of us on the Gulf Coast are experiencing the high cost of building, but if you had a contract signed prior to hurricane Katrina your house should not be able to increase in the cost of building your new home. I purchase a lot to build on two weeks before Katrina, but I did not sign a contract with a building, so my cost of my house has increased about 10 to 15 percent to build. My property conract states that I have to build within two years. The cost to build a home will keep increasing within the next three years or more. I was going to sale my old house, but now we do not have anywhere to rent until our new home is being built. The government will not help us resolve this problem. Maybe you will get some help to resolve your problem.

I have every reason to believe that stronger hurricanes will happen by her neck of the woods again. Due to global warming, sea temperatures are up, which fuels stronger hurricanes. What'll she do when another hurricane destroys her dream home once again?

Terri Johnson and family, I pray you'll win in the end!Oh yes you will! For all any of us throughout the U.S.know, this could have been the 'Mushroom Cloud' the Bush administration sold us on! And the response would have been just as slow, if non-existant. Katrina was a terrorist. And all the Republican could do is blame the victims as usual. Which goes to show all of you that they (republicans) are not for 'humanity' in general! Sad but true. And if that's not enough...the general U.S. public isn't exactly hooked on cocaine or crack but we're just as addicted to gasoline we desparately need (for our cars), and this Bush administration is trying it's hardest to keep it that way!

there are 34 very concerned comments to Ms. Johnson. Court and fight these things take long. For Now, Lets contribute $100. all of us concern about her and help her through this tuff time. Lets be Good Amricans

To the Johnson Family,I hope one day your builder will met you halfway, I will send you a Angle to watch over you and your Dream House will be built.

Look at this from another angle, all things happen for a reason. if the builder refuses to build your home, maybe God is trying to spare you from another disaster and he has something better for you. Keep you head up and keep your faith. Prayer answers all things.

I can empathize with all the people who have lost their homes in this terrible tragedy and my heart and prayers go to the families. However, I must comment about this article, I believe the contractor is right in his judgement, and his new cost. Due to this tragedy, the costs of supplies have gone up dramatically, and now there have been new "taxes" on fuel costs. I work for a general contractor, and we are also being hit hard with more costs. It is an awful thing that happened, but we must compensate somewhere, and if the home owner has to pay more then, in retrospect to what happened, I believe that to be fair. I mean realistically what is another $15,000 when you are building your dream home?

I think this is a shame for this country. If this happened in a poor nation it would be understable, but here, this is just one more show that money doesn't buy every thing in life.

The Johnson family and contractor could compromise and build a house in an area where permits are being granted that would cost the price of the original contract ($160,000) and the not the inflated contract ($195,000). When dreams are shattered, create another one that is obtainable.

I agree a contract is contract, and he should stick to that, he is trying to make money off mrs johnson and that not fair, he will see it again ...

It seems to me that everyone is missing the fact that the builder did state he would build this home. Unfortunately, it may take longer than anticipated. Even if he had no work at the present, the City Of Waveland is NOT issuing building permits. Do you think he could possibly build without one. GET REAL !!!

The Random House College Dictionary Revised Edition printed in the United States of America clearly states Page 292 (contract)
1. "An agreement between two or more parties for doing or not doing of something specified.
2. An agreement enforceable by law."

Getting right to the point, the builder if given a specific date to complete the home, would be in breech of contract and liable for punitive damages if found guilty in court. The builder would have to clearly indicate, natural diaster, wet weather event, earth-quake ect. in the contract; if not the builder is not in compliance. Builders don't build for free and it appears he does not want to loose the profit margin that was built into his bid. This is sad and not right for the builder to punish the Johnson Family for his profit margin. To the builder you owe the Johnson's a house and you signed the contract. To the Johnson's contact your attorney, your senator and your congressman to have the law with you. good Luck!

To the Johnson Family;
Our hearts and prayers are with you and all of those who have lost their homes and possessions great and small.
Having lost it all more than once, I will say that there is a good that somehow will come out of this for you. Trust in God, know that you have legal recourse, get a second wind to fight the good fight, and let our family know how to write to you. We want to help you in your time of dire need.

Johnson Family, I pray you will resolve this issue and have your dream come true. My prayers will be with you as well as many others during this process. A signed contract is binding anywhere in the world. I think it is very sad when money becomes a bigger issue than the lives of a family. God bless you all!

In hurricane plagued Florida this type of price gouging is illegal and the states attorneys office would be involved. Good luck Ms. Johnson. You certainly deserve better than this.

The builder has legal right to withdraw from this legal and binding contract due to the uncontrollable circumstances that was encountered by both parties herein.

The same would go if the homeowner had serious health implications that made them unable to continue with the ability to pay for the home built. Would you express the same sympathy if the situation unfolded in this way? I doubt it. But it does happen and even though you are driven by emotions, special circumstances can change the fine writing in any contract.


I'm sure that the builder understands that even though his customer wants what they want, there would be no incentive to go ahead with this project, especially with this becoming a public fiasco.


I read a few comments and I believe the court system will favor on behalf of the builder in this case due to mass tragedy in the area.

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