Revised Bankruptcy Plan:
GOMO has revised its plan which will be the basis for its starting point in a joint negotiation with the Creditor Committee or possibly a separate plan to be resubmitted and voted upon by the neighborhood. These are general principles and subject to revision after potential negotiations with the Creditor Committee.
- A flat, simple Transfer fee of $1500.
This will be assessed on future, and not current, property owners and will include a reasonable adjustment mechanism so it may be lowered or raised based on future needs of the neighborhood. Discontinue the current 0.75% assessment of sold property metric which is the basis of the current transfer fee. Abandon the prior contemplated $80 annual fee proposal. Current property owners will not pay any fees. The judge was adamant that GOMO include a mandatory annual fee in its earlier plan. However, with the voting results in hand, we are comfortable standing up to the judge and recommending a transfer fee on future property owners be maintained, but significantly lowered, and improve the method so as to address the concerns of residents regarding ability to adjust in the future.
- Maximize money returned to Creditors.
After attorney’s fees are paid, post-petition fees returned, and 1 year reserve of operating expenses for future HOA are set aside,100% of remaining funds will be returned to creditors. It is our objective to ensure our plan maximizes the funds returned to creditors.
- Updated Deed Restrictions and Bylaws.
Neighbors, we need these updates. Some of the current restrictions are untenable and must be revised/updated. On this point there is very little disagreement. There must be a reasonable amendment process, sorely lacking in the current DRs, to allow the DRs to evolve moving forward. Had a workable and reasonable amendment mechanism been in place, the neighborhood could have easily voted years ago whether it wanted to amend or remove certain restrictions that weren’t equitably established and enforced through all sections of GO. The existing method requiring an affirmative vote of 67% of all neighbors is too high a threshold and a difficult task which is why the DRs have not been updated. The GOMO Board strongly advocates capitalizing on this opportunity to update and revise our DRs and bylaws under the protection of and as part of the bankruptcy case to more easily ensure and facilitate a timely passage.
- Fix GOMO Formation Defect.
- GOMO leadership resigns upon plan confirmation.
The new HOA Board elected after bankruptcy is completed will consider the benefits of 3rdparty professional management for Deed Restriction enforcement. It is the GOMO Board’s belief that ensuring a professional, objective process for DR enforcement would allow the neighborhood to move forward with greater confidence, but feedback at prior Townhalls and the voting results suggest this is not the most pressing priority for the neighborhood.