Bankruptc y I ssue : Appe llate Co urt Opinio n T hat Hig hlig - - PowerPoint PPT Presentation

Bankruptc y I ssue : Appe llate Co urt Opinio n T hat Hig hlig hts F

• rmatio n I

ssue F ixable

Case 18-60018 Document 63 Filed in TXSB on 12/04/18 Page 1 of 9

Sinc e Our L a st He a ring

• GO-Re fo rm Surve y Re sults (Surve y De live re d T
• E

ve ry Ho use ho ld I n T he Co mmunity)

• F

ac e -T

• -F

ac e With T he Cre dito rs Co mmitte e

• I

nfo rmal Me e ting s Be twe e n CC Me mbe rs and Bo ard Me mbe rs

• T
• wn Hall Me e ting s F
• r T

he Co mmunity As A Who le

Case 18-60018 Document 63 Filed in TXSB on 12/04/18 Page 2 of 9

GO Re - F

• rm Surve y
• All Garde n Oaks ho me o wne rs (~1400) in Se c tio ns 1,2,3,4,

and 5 we re maile d surve ys, re g ardle ss o f whe the r o r no t the y re side d in Garde n Oaks

• 311 re spo nse s we re re c e ive d by Aug ust 2018 de adline
• No t e ve ry que stio n re c e ive d a re spo nse

Case 18-60018 Document 63 Filed in TXSB on 12/04/18 Page 3 of 9

GO Re - F

• rm Surve y Re sults

Yes, 81% No, 19%

Do You Want a New HOA?

Expanded Responsibilites, 65% Only DRs, 35%

Scope of HOA Responsibilites

Case 18-60018 Document 63 Filed in TXSB on 12/04/18 Page 4 of 9

GO Re - F

• rm Surve y Re sults

Mandatory, 76% Annual, 24%

Type of Funding Mechanism?

Re‐formation Effort for New HOA, 50% GOCC, 23% Split Funds with GOMO, 5% Remain with GOMO, 16% Split Funds ‐ None to GOMO, 6%

GOMO's Remaining Funds?

Case 18-60018 Document 63 Filed in TXSB on 12/04/18 Page 5 of 9

GO Re - F

• rm Surve y Re sults

Yes, 60% No, 40%

Are the DRs Outdated?

Enforcement Structure, 10% # of Board Members, 2% Frequencey

• f Fee, 6%

Amount of Fee, 14% Building Lines, 7% Dwelling Types, 7% Height of Dwellings, 11% Garage Apartment Restrictions, 13% Garage Size, 17% Paint Colors, 7% Other, 7%

Which DRs Are Outdated?

Case 18-60018 Document 63 Filed in TXSB on 12/04/18 Page 6 of 9

GO Re - F

• rm Surve y Re sults

Single, 50% Standalone, 50%

Combine HOA and GOCC?

Case 18-60018 Document 63 Filed in TXSB on 12/04/18 Page 7 of 9

Surve y Re sults/ Me e ting s

• Are as Of “Agre e me nt”:
• Se rvic e s Of T

he Civic Club and the HOA pro bably ne e d to be c o mbine d at so me le ve l (c o mbine s re ve nue with se rvic e s);

• Amo unt o f the HOA F

e e Ne e ds T

• Be Re duc e d;
• F

e e Sho uld Be Madato ry;

• De e d Re stric tio ns Ne e d T
• Be Ame nde d;
• Mo dify By-L

aws T

• Addre ss L

e g ac y L e ade rship I ssue s And T

• Pro vide F
• r

E xpande d Se rvic e s

Case 18-60018 Document 63 Filed in TXSB on 12/04/18 Page 8 of 9

Whe re We (De bto r/ CC) Disag re e

 T

he Ba nkruptc y Issue

– Chang Opinio n fo und that the Pe titio n Co mmitte e tha t ame nde d the De e d Re stric tio ns pro viding fo r the mandato ry fe e struc ture was flawe d.

 De bto r be lie ve s that this issue c an be e ffe c tive ly de alt with in the

Bankruptc y Pro c e ss, allo wing the De bto r to e me rg e fro m bankruptc y intac t and immune fro m furthe r“fo rmatio n” attac ks.

 CC appro ac h is to “ac kno wle dg e ” fo rmatio n flaw, and re quire the

ne ig hb o rho o d to re -fo rm fro m sc ratc h utilizing the T e xas Pro pe rty Co de , addre ssing the ide ntifie d issue s in a ne w pe titio n and ame ndme nt pro c e ss o utside o f bankruptc y.

 F

undame ntal “bankruptc y” disag re e me nt.

Case 18-60018 Document 63 Filed in TXSB on 12/04/18 Page 9 of 9