Garden Oaks Maintenance Organization Likely To File for Bankruptcy on Account of All That Money It Has in the Bank

GARDEN OAKS MAINTENANCE ORGANIZATION LIKELY TO FILE FOR BANKRUPTCY ON ACCOUNT OF ALL THAT MONEY IT HAS IN THE BANK The Garden Oaks Maintenance Organization has hired a law firm to handle an anticipated bankruptcy filing — which could come as soon as Monday, reports The Leader’s Jonathan McElvy. Two years ago, a lawsuit that the organization had filed to enforce its deed restrictions against a pair of homeowners backfired when the court ruled that GOMO itself had not been formed legally. (An appeals court has since ruled that it does still have power to enforce the neighborhood’s bylaws.) As a result, in the wake of the initial ruling, “every dollar GOMO spends now could be challenged in court,” writes McElvy. With close to $600,000 in its bank account, GOMO now appears to face 2 options, he notes: “Either the board disbands and lets a judge tell them how to disburse that money, or they try a legal maneuver that seeks a judge’s permission to reorganize, so they can continue operations as the gatekeeper of Garden Oaks.” If this story sounds vaguely familiar, it’s because it is. GOMO’s predecessor entity was disbanded before the current organization began in 2001 because it was, McElvy says, “formed illegally, as well.” [The Leader; previously on Swamplot] Photo: Swamplot inbox

15 Comment

  • Wow. Two instances of “not legally formed” for the same association? I hope they didn’t use the law firm/attorney from the first botched job to do the second one.
    .
    And, most certainly do not use either the first or second attorney for the THIRD go-around. Come to think of it, GOMO may want to get a second opinion on that third formation document. You don’t get a second/third/fourth chance at making a first impression.

  • What an embarrassment.

  • GOMO really has phucked up – TWICE . And they may go for a THIRD go round. Here’ a suggestion : NEW board members. The lumpkins running (ruining) GOMO need to go. And don;t but property in GOMO. The legal fallout could result in higher HOA fees.

  • Better question is, what’s gonna happen to the $600K if it was ‘illegally’ obtained to begin with ? That’s going to be the basis for the bankruptcy filing – GOMO’s going to get sued to death for falsely collecting a multi-thousand dollar ‘transfer fee’ when a property in GO previously transferred ownership.

  • Better call Saul.

  • First MMD. Now GOMO. Good day for the rebel forces.

  • Clever question mark on sign.

  • No Mo GoMo!!!!!
    Get rid of it.
    The end!!!!
    Divide the remaining money among
    All the residents, and be done with it.
    Let the city of Houston handle approval of plans
    like they do for the rest of Houston!!
    ENOUGH !!!!

  • I hope the people in Montrose and Garden Oaks realize that there will be less improvements happening by getting rid of these groups. The city will be spending a total of $0 in your areas. Just an FYI.

  • Agreed, @reality stinks, but at least Garden Oaks is in pretty good shape compared to Montrose. Pretty soon we will be hearing the moans from the same people who are cheering on their dissolution. The answer is not in their demise but in reforming the organizations for only a unified voice gets heard.

  • what a joke. if either gomo or mmd had been doing anything to get the city to spend money improving their neighborhoods instead of the boneheaded things they were doing to piss off the neighborhood, then they wouldnt be in either of their respective predicaments. you’re living in a fantasy world.

  • @WR: Just curious, do you ever go to Numbers? If you turn Montrose in Garden Oaks then Numbers will close. If that’s you’re goal then you are a wicked person. If that’s not your goal, then head’s up! A uniform sea of “nice” neighborhoods leaves no place for Numbers.

  • @memebag ….. Numbers? Do I ever go to Numbers? Oh, hell no, but my daughters did in their teen years …. they have grown up, why haven’t you?

  • @WR There’s no evidence that memebag hasn’t grown up. This may come as a surprise to you but many people retain both an appreciation for music and their sense of hearing well into middle age, and beyond.
    It’s closing in on forty years since I moved to the Montrose, but I can still appreciate the unique qualities of this neighborhood which continue to attract young people.
    If potholes in the streets and broken sidewalks and live music venues and “undesirable” people serve to dissuade humorless grumpy old farts from infesting Montrose, then by all means let’s celebrate and retain them.

  • The predecessor to GOMO was formed in the 50s. It was a completely different situation.

    The City doesn’t review plans for deed restriction compliance, Becky. They only check them if someone complains. There have been tons of times the City was called when a violation was being built in the section that didn’t have GOMO and only then was the project red tagged.