Mobile Hurricane Harvey Recovery Center Coming to Kingwood Feb. 23 and 27

Council Member Dave Martin would like to make residents aware that the City of Houston has launched its Homeowner Assistance Program. Here are details.

$1.17 Billion Available through Five Programs

The City of Houston has received $1.17 billion for housing recovery through the U.S. Department of Housing and Urban Development and the State of Texas General Land Office. The recovery funds will be used five ways:

  • Reimbursement for completed repairs
  • Homeowner-managed rehabilitation
  • City-managed rehabilitation and reconstruction
  • Buyouts
  • Interim mortgage assistance.

Available to Homeowners of All Income Levels

Priority will be given to low and moderate income homeowners. However, assistance is available to homeowners of all income levels.

Start With Online Survey

Start the application process by taking this Harvey Recovery Survey. It will help direct you to the appropriate recovery program and help the City prioritize those with urgent needs. You need nbo documentation to take the survey. t takes less than 15 minutes to complete.

Other Options to Apply

Those not comfortable with online surveys have several other options:

  • Call 832-393-0550 (Monday through Friday, 9:00 a.m. to 5:00 p.m.)
  • Or visit one of the mobile centers when it visits the Kingwood Community Center at 4102 Rustic Woods, Kingwood, TX 77345: Saturday, February 23,  10:00 a.m. to 1:00 p.m. or Wednesday, February 27, 11:00 a.m. to 1:00 p.m.
Visit the mobile unit in Kingwood or one of these permanent Recovery Centers to apply.

The nearest permanent Housing Recovery Center is at 9551 N. Wayside, Houston, Texas 77028. It is open Monday and Tuesday, from 9:00 a.m. to 6:00 p.m., Wednesday and Thursday from 10:00 a.m. to 8:00 p.m., Friday from 9:00 a.m. to 6:00 p.m., and Saturday from 9:00 to 3:00 p.m. The center is closed on Sundays.

Followup and For More Information

An Intake Specialist will contact you after you complete the Survey regarding next steps. For more information, please contact the Houston Recovery Center by calling 832-393-0550. 

Posted by Bob Rehak on February 19, 2019

539 Days after Hurricane Harvey

More Questions than Answers About Romerica Group, Romerica Investments, and Their Supposed $2.5 Billion Project

A company called Romerica Investments, LLC filed applications with the US Army Corps of Engineers and the Texas Commission on Environmental Quality to develop hundreds of acres of land currently in the floodplain, the floodway and wetlands near the San Jacinto. The land is between Kingwood Lakes and the San Jacinto River, east of Woodland Hills Drive. If the Army Corps approves the permit, buildings could range up to 50 stories on land deed-restricted to single-family use. Meanwhile, numerous other questions have arisen about the maze of companies, including the Romerica Group, behind what Houston City Council Member Dave Martin has described as a $2.5 billion proposal.

Romerica Investments

Romerica Investments, LLC is one of many ostensibly related companies, according to the developer’s Romerica Group website.

Problem is: Dun & Bradstreet thinks Romerica Investments is out of business. And the Romerica Group is not registered with the Secretary of State to do business in Texas.

35 Companies Controlled by Two Men

Searches have revealed 35 companies so far that are registered with the Texas Secretary of State that belong to Gabriel M. Haddad and Fabio M. Covarrubias. Both men use multiple variations on their names, making it difficult to nail down a precise number of companies and partnerships that they control. They also register additional companies and partnerships in other states and countries, making ownership and accountability even more difficult to track.

Romerica Investments does not have a functioning public-facing informational website that I can find; RomericaInvestments.com, which was registered in 2016, still leads to a “Future Home of…” page. However, clicking on the Romerica Investment link from the Romerica Group home page takes you to a password-protected login page at separate website address for the Kingwood Marina Project. This website was registered by Romerica Investments.com.

A new and separate promotional website developed by Manlove Advertising and PR for the developers now implies that the Romerica Group will be responsible for the development. Yet there is no Romerica Group registered to do business in the State of Texas. This search of the Secretary of State’s SOS Direct database returned nothing close to the Romerica Group.

Romerica Group’s website says they have 12 projects currently “running” in the U.S. and Mexico. However, a review of the company’s many websites found only two related to real-estate development – one in each country. The US project in Kingwood has not been constructed and the website for the development in Mexico shows only conceptual drawings. The Romerica Group website shows nine related entities, discussed below.

Motor Sports Resort

In November 2014, Covarrubias and Haddad bought a race track in Angleton at One Performance Drive in the middle of farmland (see below). Built in 2005, it was originally called MSR Houston. MSR stood for Motor Speedway Ranch. Photos on the site suggest that the tallest building on the property is two to three stories. It sold memberships and track time to owners of high-performance vehicles who wanted to drive fast legally in a controlled environment.

Racetrack in Angleton caters to performance driving enthusiasts. As of 3/21/18, Google Earth showed only a track with some garage space and a few other small buildings.

AFTER the track fell into financial difficulties, Covarrubias and Haddad bought the property under the names Piffer and Giorgi in November, 2014,. They bought it through one of their 35 companies called Romerica Entertainment, LLC.

On Christmas Eve of 2014, Piffer (using the name Fabio M. Covarrubias) promised the members of the race track that Romerica Entertainment would make many improvements to the facility, including building a four-star hotel. More than four years later, there’s still no sign of the hotel in satellite photos, the Brazoria County appraisal district website or legal filings related to the property.

The Motor Sports Resort site mentions a real-estate company, MSR Houston Real Estate, that was supposedly introducing a master plan for the track by the summer of 2018. The MSR Houston web site does say, “Coming Soon,” but the Texas Secretary of State shows no record of such a company and a google search for it returned no results except the one below. I can find no details of a master plan on the website.

Tramontana and Lotus Driving Academy

The Romerica Group website also claims to have two other automotive related ventures:

  • Lotus Driving Academy located at the track.
  • MSR Tramontana LLC features a high-performance car. However, the site does not say what the group’s contribution to the vehicle is. It says that they are one-of-a-kind vehicles with “excellent levels of production and development” but doesn’t say how many have been built or how to buy one. Tramontana has a separate, dedicated website. That offers a little more detail. But on their partner page, they list a branding company, two fashion designers, and a web developer. I could find no references to manufacturing partners or where the vehicles were made.

FAMA Design

Romerica Group’s website also shows a company, FAMA Design, that sells rustic doors, windows and furniture online. Unfortunately, when you try to order something, you find that the site’s security certificate has expired. You get the following warning:

Warning message when you check out from FAMA Design.

Romerica Insurance

Romerica Insurance does not have its own web site. However, it does have several Facebook pages. They sell many different types of insurance, including – ironically – flood insurance. FaceBook also lists an office for the insurance company at the Angleton racetrack.

Romerica Real Estate

Romerica Real Estate does not have its own web site either. The link to Romerica Real Estate from the Romerica Groups Home Page is broken. HAR.com (Houston Area Realors) says that the Romerica Real Estate “page is no longer active.” Same for FaceBook. A Google search returns dozens of other “page not found” error messages. The Texas Real Estate Commission (TREC) shows that the company’s account is “inactive.” TREC also lists the real estate company’s address as the racetrack in Angleton.

The Texas Real Estate Commission lists the Romerica Real Estate, LLC account as inactive even though it has not expired. Note that the TREC also lists the address for the real estate company at the race track.

Torrenova Cuernavaca

Another link from the Romerica Group Home Page goes to Torrenova Cuernavaca. The subhead says it deals with Romerica land in Mexico. Last month, clicking on the link yielded another dead-end search.

However, the Torrenova-Cueranvaca site has since been updated to include concept drawings. It shows no actual photos of anything the “company” has constructed, though the site does list prices. Like the Romerica Group itself, Torrenova Cuernavaca is not registered to do business in the state of Texas (though in fairness, the site is in Spanish).

American Vision EB-5

American Vision Regional Center also appears on the Romerica Group home page. American Vision’s contact page shows that the formal name for the company as “B US TOTAL INVESTOR, LLC.” It IS registered in the State of Texas. B US TOTAL INVESTOR lists American Vision Regional Center as its assumed name. Gabriel M. Haddad, one of the managers, lists his address on a street that does not exist.

American Vision Regional Center solicits investments through the U.S. Citizenship & Immigration Service EB-5 program. EB-5 visas offer a legal pathway into the U.S. for foreign investors, their spouses and family members under 21.

While the EB-5 program is real, the developer’s website features a building that purports to be part of the Marina project, but is not. The building’s construction was canceled due to lack of pre-leasing activity; it was actually designed for a project in downtown Houston on Waugh unrelated to the developers.

Worse:

  • The contact phone number for the site is disconnected. 
  • The office has been reported as vacant.
  • The site refers people to another site that does not exist (AmericanVisionCenterEB5.com).
  • The developers have been highlighted in InternationalAppraiser.com for “touting fake EB-5 projects.” 
  • Foreign investors are suing the developers for fraud in Houston district court. (See MARIA DEL CARMEN BORBOLLA AND MARIA DEL CARMEN GOMEZ, CAUSE NO. 2018 – 07276, 157th Judicial Court, Harris County, Tx.) 
  • Clicking on the home page of AmericanVision.com takes the viewer to an unrelated site (AmericanVision.org) that sells religious books. AmericanVision.org is registered to a seemingly unrelated company in Paris, France.
  • The landing page for AmericanVision.com shows links to four sub-pages: Why EB-5?, Info For Investors, FAQs, and Our Parters. Links to each page are broken. They take you to a “page not found” error message on the bookstore site.

Warning to Potential EB-5 Investors

If you are considering investing in ANY EB-5 project, understand that the EB-5 program has been plagued by fraud. Visit this Securities and Exchange Commission page (Investor Alert: Investment Scams Exploit Immigrant Investor Program). It explains how to check out the validity of projects and recognize the warning signs of fraud.

The SEC’s first warning sign: “Promises of a visa or becoming a lawful permanent resident.” The text explains, “Investing through EB-5 makes you eligible to apply for a conditional visa, but there is no guarantee that USCIS will grant you a conditional visa or subsequently remove the conditions on your lawful permanent residency. USCIS carefully reviews each case and denies cases where eligibility rules are not met. Guarantees of the receipt or timing of a visa or green card are warning signs of fraud.

Copy on the AmericanVision.com About Us Page clearly states that their program was “…designated by the United States Citizenship and Immigration Services (USCIS) to offer Investor Visa / Green Card through the EB5 Immigrant Investor Program.”

Last line of copy shown above seemingly violates SEC guidelines.

To be clear, I am not accusing Romerica or its management of fraud. I am merely repeating US government advice for investors to be cautious in these circumstances.

Domain-Registration Dead End

A “WhoIs” database search for the owner of AmericanVision.com showed that the domain name is owned by Romerica Investments.

Although the domain RomericaInvestments.com was registered in 2016, it still shows a “Future Home of” page and nothing else. A WhoIs search for RomericaInvestments.com does not show a contact for the web site.

When Will Developers Appear to Answer Questions?

Numerous questions exist about the people applying for permits to build high-rises feet away from the floodway of the San Jacinto? They surely know that the area where they want to build 25-50 story high rises will soon be INCLUDED in the floodway when new flood maps are approved. Who would build there? Why?

I do not wish to speculate on the motives of the developers. I can only point out inconsistencies that do not inspire confidence. Especially for someone developing what Houston City Council Member Dave Martin has described as a $2.5 billion project. Especially when they’ve shown no evidence that they have ever built anything.

Despite my seven requests for a meeting, the developers have refused to meet publicly to answer questions. Their official point of contact at the Manlove Advertising and PR agency has stated that they may consider one AFTER the public comment period closes.

One can only hope that the Army Corps and TCEQ will exercise due diligence in consideration of these permit requests.

As always, these comments represent my opinions on matters of public policy. They are protected by the First Amendment of the US Constitution and the Anti-SLAPP statute of the Great State of Texas.

Posted by Bob Rehak on February 17, 2019

538 Days After Hurricane Harvey

Two Dozen Pieces of Legislation Introduced to Help Prevent Another Disaster like Harvey

While I have primarily focused on legislation around sand mining, legislators in both the Texas House and Senate have filed bills that address other aspects of the Harvey disaster. I have arbitrarily grouped them into several categories below to make this rather lengthy list easier to follow.

The 86th Legislature of the State of Texas is now considering all of the proposed legislation in this post.

Preparedness

Remember how residents received no warning to evacuate before water invaded their homes? Remember how the storm overwhelmed emergency response systems?

  • Rep. Will Metcalf introduced HB26 that would create an alert system. It stipulates that the dam operator must provide: time of release, expected duration of release, expected level of flooding that will result, etc.
  • Rep. Richard Raymond introduced HB34 that would create a statewide disaster alert system under the Texas Division of Emergency Management (which is part of DPS).
  • Rep. Sarah Davis sponsored HB1294 requiring emergency management training for officers and employees of political subdivisions whose responsibilities include emergency preparedness or management.
  • Sen. Boris Miles introduced SB 285. It would require the Governor to issue a proclamation each year before hurricane season. The proclamation would direct state agencies, municipalities and counties to review and update hurricane preparedness plans. It would also require them to conduct community outreach and education activities on hurricane preparedness.
  • Sen. Charles Perry introduced SB396 relating to state and regional flood planning. It would create a state flood planning process administered by the Texas Water Development Board.

Dam Hazards

Concerned about that upstream dam that might flood you?

  • Rep. Gina Hinojosa introduced HB137 that would require the TCEQ to notify communities of significant dam hazards.

Involving Public in Permitting Processes

Concerned about how sand mine and superfund sites get permitted next to your water supply without anyone in your community knowing?

  • Rep. Jessica Farrar introduced HB245. It would require applicants for environmental and water-use permits to post a copy of the applications online.

Flood Insurance Disclosure

Did you think you had flood insurance coverage when you didn’t?

  • Rep. Mary Ann Perez filed HB 283. It would require insurers to disclose on the top page of a commercial or residential policy whether the policy covers loss caused by flooding.

Disclosure of Prior Flooding

Concerned that the people selling you a home might not fully disclose flood risks and the property’s history re: flooding?

  • Senator Joan Huffman introduced SB339. relating to a seller’s disclosure notice for a residential property regarding floodplains, flood pools, or reservoirs. It would require a seller of residential property to disclose existing information about whether the property is within the 100-year floodplain, the 500-year floodplain, the flood pool of a reservoir, or within five miles downstream of a reservoir and the property has flooded in a flood event.

Adequacy of Infrastructure

Concerned about how our infrastructure couldn’t handle Harvey and about how long it is taking to fix those issues?

  • Rep. Dade Phelan introduced HB478 that would help fund flood planning, mitigation and infrastructure projects.
  • Rep. Amando Walle introduced HB801 that would establish a task force to conduct a comprehensive study on flood control infrastructure for Harris County.
  • Sen. Boris Miles introduced a companion bill to HB801. SB 179 requires U of H to provide staff and administrative support for the task force. It also directs Harris County Flood Control to advise the task force.
  • Rep. Dennis Paul introduced HB1010 that would establish regional flood planning that includes a prioritized list of projects necessary to meet the needs of the region for the next 10 years.
  • Rep. Eddie Lucio III introduced HB1059 that requires the TCEQ to appoint a Green Stormwater Infrastructure and Low Impact Report Group. It would report every other year on systems and practices that manage stormwater, and that protect water quality and associated habitat.
  • Sen. Charles Perry sponsored SB397 related to the funding of flood-related projects by the Texas Water Development Board. It also includes flood-related projects administered by the State Soil and Water Conservation Board.
  • Senator Brandon Creighton introduced SB695. It creates a Texas Infrastructure Resiliency Fund administered by TWDB to provide grants, low-interest loans, or zero-interest loans to eligible political subdivisions. for
  • flood projects.
  • Sen. Charles Perry proposed a constitutional amendment providing for the creation of a State Flood Plan Implementation Fund to assist in the financing of certain flood-related projects. It also calls for transferring $1.2 billion from the economic stabilization fund into State Flood Plan Implementation fund on 11/30/19.

Sand Mining

Concerned about whether aggregate production operations (sand mines) will destroy a river near you?

  • Rep. Terry Wilson, introduced HB509. It would allow the Railroad Commission to regulate aggregate production and requires them to consider the cumulative impact of multiple operators in an area.
  • Rep. Dan Huberty filed HB907 that increases penalties for failure to register aggregate production operations.
  • Huberty also introduced HB908. It increases penalties for other violations by aggregate production operations and requires inspections by the TCEQ every two years instead of three.
  • HB909, also by Huberty requires the TCEQ to establish a set of Best Management Practices for aggregate productions operators.
  • Sen. Donna Campbell introduced SB694. It increases the frequency of aggregate production operations by the TCEQ and allow unannounced inspections for APOs that had violations in the preceding two years. It also increases the maximum possible penalty for APO violations to $20,000 per day from $10,000.

Aquifer Storage and Retrieval

Concerned about loss of lake capacity due to sedimentation from flooding? About subsidence? About the long-term availability of ground water?

  • Rep. Lyle Larson introduced HB720. It appropriates water for use in aquifer storage and recovery projects.
  • HB721, also sponsored by Larson, requires the Texas Water Development Board to conduct studies of aquifer storage and recovery, and to prepare and submit reports on the same.

Lake-Houston-Area Interests

Concerned that no dedicated entity is looking out for the interests of Lake Houston Area residents?

  • Rep. Dan Huberty introduced HB911 that creates a Lake Houston Watershed Commission that will be responsible for planning for the area, share information and publish information.

If you are aware of other bills that should be on this list, please contact me. I will update it periodically throughout the legislative session.

You can track the progress of bills through the legislative session by clicking on links to the bills above. You can also track a group of bills by creating a list at My Texas Legislature Online.

Posted by Bob Rehak on 2/16/2019

536 Days since Hurricane Harvey

Huberty Introduces HB1671 To Extend Water-Quality Protections to West Fork

State Representative Dan Huberty introduced House Bill 1671 this week. It amends Section 26.551 of the Water Code to give the West Fork of the San Jacinto protections enjoyed by the John Graves Scenic District on the Brazos as a result of a pilot program started in 2005. The bill covers the portion of the West Fork between Lake Conroe and Lake Houston which has 20 square miles of sand mines.

Visual Inspections Twice a Year

If adopted, it would obligate Texas Parks and Wildlife Department to conduct visual inspections of the West Fork twice a year. The inspections would consist of two parts: flyovers and from the water surface. TPWD would conduct one set of inspections in summer and the other in winter.

Any fines received as a result of these inspections would go into a fund for reclamation and restoration of “beds, bottoms, and banks of water bodies affected but the unlawful discharges.”

Pilot Program Ends in 2025

If approved HB1671 would take effect on September 1, 2019, and run through September 1, 2025. That’s because the original bill was conceived as a pilot program that expires in 2025.

Greater Setbacks, Performance Bonds and Best Practices

The original bill also prohibits the construction or operation of any new quarry, or the expansion of an existing quarry, located within 1,500 feet of a water body located in a water quality protection area. However…

Exceptions may be granted if the quarry can prove that it satisfies performance criteria that address:

  • (A) slope gradients that minimize the potential for erosion, slides, sloughing of quarry walls, overburden piles, and banks into the water body and related water quality considerations;
  • (B) whether operations could result in significant damage to important historic and cultural values and ecological systems;
  • (C) whether operations could affect renewable resource lands, including aquifers and aquifer recharge areas, in which the operations could result in a substantial loss or reduction of long-range productivity of a water supply or of food or fiber products; and
  • (D) whether operations could affect natural hazard land, including areas subject to frequent flooding and areas of unstable geology, in which the operations could substantially endanger life and property.
River is migrating toward pit in background at 12 feet per year. Only 38 feet remain before river breaks through dike. Wider setbacks, like those mandated in HB1671, would reduce this danger and consequent sedimentation.

The other major provisions of the bill make quarry operators:

  • Follow best management practices which, presumably, would be defined under HB909.
  • Post a performance bond that covers site reclamation when they finish mining.

Pros

This bill would be a good first step in protecting the shores of the San Jacinto.

It would requires new operations to move farther back from the river. That should help reduce sedimentation and erosion in the long run. Lake Houston Area flood prevention activists have pushed this idea for more than a year.

HB1671 would also force operators to follow industry best-management practices and to reclaim land when they are done mining.

Cons

Unfortunately, the pilot program only runs for six more years. However, if successful, the legislature could make the program permanent in 2025.

The twice yearly inspections are a disappointment though. The major damage to water quality comes from breached dikes. Operators can patch dikes and plant grass which conceals the evidence of breaches after a few weeks in this climate. Landsat images, such as those in Google Earth, provide a much more effective method of monitoring. The satellite goes over this area every 1.5 hours…16 times a day. Monitoring operations from a computer monitor in near-real time would be much more effective and cheaper. One person could monitor every mine in the state on a daily or weekly basis.

About one month after this West Fork sand mine breach, new grass was already knee high. Inspections need to be made more frequently than once every six months. Satellite photos provide a more timely and cost-effective solution.

However, neither miners, regulators, nor legislators seem eager to take advantage of this technology when I bring the subject up. It makes one wonder why.

Recommendation

All in all, I love what HB1671 is trying to do and support it whole-heartedly. I hope as it makes its way through committee, the amendment can be amended to include more frequent satellite inspections.

Posted by Bob Rehak on February 14, 2019

535 Days since Hurricane Harvey

Kingwood Lakes Threatens Legal Action Over Portion of Proposed High-Rise Development

Kingwood’s Kingwood Lakes Community Association has threatened legal action over a portion of the proposed high-rise development between Lake Kingwood and the Barrington. Developers planned multi-family condominium units on stilts for that area. But deed restrictions limit construction to single-family housing compatible with surrounding architecture.

Milan Saunders
View from Milan Saunders home in Kingwood Lakes during Harvey. This is why Kingwood Lakes residents are so concerned about the diversion of drainage from the proposed high-rises and condos towards them.

Single-family usually means “one family in one house on one piece of land.” The developers had planned 65′ high, MULTI-FAMILY condos. That would not look anything like the classic homes in either Kingwood Lakes or the Barrington.

Drainage Issues Compound Deed Restriction Issues

Deed restrictions also prevent diversion of drainage onto the property of others. According to the US Army Corps’ public notice, the developers planned to divert runoff into Lake Kingwood. That lake is owned and maintained by the Kingwood Lakes subdivision. Without the permission of the Association, that would also constitute a deed restriction violation.

The letter warns that if development commences, the association will seek “judicial enforcement of deed restrictions, architectural guidelines and protection of its property. Such action may include claims for injunctive relief as well as relevant damages.”

The letter closes by saying that the Association hopes no further action will be required.

Kingwood Lakes addressed the letter to the Army Corps. However, the homeowners’ association also copied officials at Harris County Flood Control and the City of Houston.

To see the full text of the letter, click here.

Posted by Bob Rehak on 2/14/2019

534 Days after Hurricane Harvey

Search for Owners of High-Rise Properties Leads to Maze of More Than 30 Companies in Texas Alone

Romerica Investments LLC has filed permit applications with the Army Corps, City of Houston, and Harris County Flood Control. Romerica Investments hopes to build 5,000 mid-rise condos, a series of high-rise towers ranging from 25 to 50 stories, and a marina to hold 800 40-foot boats and 200 jet skis – all on property deed-restricted to “single-family residential” in a bald-eagle habitat protection zone. The property is near River Grove Park in the floodplain and floodway of the San Jacinto’s West Fork.

However, a title search revealed that Romerica Investments does not own the property on which it intends to build. A search for who does own the property led through a maze of more than 30 other entities in Texas. Two individuals run virtually all of them. The individuals sometimes use different names and different spellings of their names when registering their businesses with the Texas Secretary of State. They also list offices that are sometimes vacant; phone numbers that have been disconnected; and an address on a street that does not exist. In the case of the land in question, they even registered the company under the first name of one man and the last name of the other. Innocent mistakes or part of a pattern? You judge.

Maze Haze

I searched websites of the Harris County District Clerk and Appraisal District; the Texas Secretary of State; CorporationWiki; Dun & Bradstreet; and Google. The search revealed at least 32 companies in Texas associated with variations on Fabio M. Covarrubias’ name and 24 under variations of Gabriel M. Haddad’s name. A large degree of overlap exists between the companies controlled by the two men. See below.

Spider diagram courtesy of CorporationWiki showing the maze of relationships between companies and people in this post.

Covarrubias Companies

The name Fabio M. Covarrubias pulls up the following:

  • ARTICA INVESTMENTS LLC
  • B US TOTAL INVESTOR, LLC, aka American Vision Regional Center
  • B US DEVELOPER, LLC
  • Cova Capital Inc.
  • Fama Design Corporation
  • Lake Como Properties LLC
  • MSR INTERNATIONAL, LLC
  • MSR LOTUS AMERICA LLC
  • Pacifica Properties Inc.
  • Pacifica Properties LLC
  • ROMAN ARROW, LLC
  • ROMERICA C.L. 2 LLC
  • ROMERICA ENTERTAINMENT, LLC
  • Romerica Insurance LLC
  • Romerica Investments LLC
  • Romerica Real Estate LLC

The name Fabio M. Covarrubias Piffer (without a hyphen in the last names) is associated with:

  • Cova Assets Inc.
  • FAMA Ranch Company
  • MSR LAND LLC
  • MSR Serials LLC
  • MSR TRAMONTANA AMERICA LLC
  • North American Phosphates and Supplies Co.
  • Romerica Assets LLC
  • Romerica GP, LLC
  • Romerica Investments LLC
  • Romerica CW 3 LLC
  • Romerica E 6 LLC
  • Romerica R 1 LLC
  • Romerica RMR 4 LLC
  • Trio Sports Developments LLC

The name Fabio M. Covarrubias-Piffer (with a hyphen) is associated with:

  • FAMA PROPERTIES LIMITED PARTNERSHIP

Fabio Massimo Covarrubias-Piffer (full middle name with hyphen) is associated with:

  • Romerica Title, LLC

Haddad Companies

Gabriel Miguel Haddad’s name appears with:

  • B US TOTAL INVESTOR, LLC, aka American Vision Regional Center
  • DOSEVARE, LLC
  • Fama Design Corporation
  • MSR INTERNATIONAL, LLC
  • MSR LOTUS AMERICA LLC
  • Paban Corporate Services Inc.
  • ROMAN ARROW, LLC
  • Romerica Assets LLC
  • ROMERICA ENTERTAINMENT, LLC
  • Romerica Insurance, LLC
  • Romerica Investments, LLC
  • Romerica Real Estate, LLC

The name Gabriel M. Haddad Giorgi appears with nine more LLCs in Texas:

  • Emprende Management, LLC
  • MSR LAND, LLC
  • MSR TRAMONTANA AMERICA, LLC
  • Romerica C.L. 2, LLC
  • Romerica CW 3, LLC
  • Romerica E 6, LLC
  • Romerica GP, LLC
  • Romerica RMR 4, LLC
  • Romerica M 5, LLC
  • Romerica R 1, LLC
  • Romerica Team, LLC

Gabriel Miguel (middle name spelled out) Haddad Giorgi is listed as the manager of:

  • Romerica Title, LLC

And finally, in a class all its own, the name Fabio M. Haddad Giorgi appears on the Certificate of Formation of:

In case you’re doing a double take, that’s the first name of one man with the last name of another. They amended that filing last year so that their names now appear as Fabio M. Covarrubias Piffer and Gabriel M. Haddad Giorgi.

Filing for Permit to Develop

Whew! Got all that? Now get this. Romerica Investments, the company that filed the permit application with the Corps, lists Mr. Covarrubias as both manager and director under two different names. Also note that the address on “Nuntucket” for Mr. Haddad does not exist; there is no such street. (Many of their filings use this misspelling. A Nantucket street does exist in Houston.)

Romerica Investments’ management information. Note the different names, addresses and positions for Mr. Covarrubias. Also note the different positions for Mr. Haddad and the misspelling of his street name. Google Maps street view shows rather expensive homes at this address, so “Suite C” seems odd.

Gabriel Miguel Haddad even registered Romerica Investments under the name Miguel Gabriel Haddad, flipping his first and middle names.

Company with Disconnected Phone Number Now Developing Multi-Billion Dollar Project

Dun & Bradstreet shows Romerica Investments as out of business. The company’s web site home page has shown “Future Home of…” for the last six years. After I pointed out some of these problems in previous posts, Manlove Advertising created a website suggesting that the Romerica Group will now develop the Kingwood Marina Project. See below.

Kingwood Marina website suggests that Romerica Group, not Romerica Investments will develop property. It also states that developers believe in “dialog with stakeholders,” but they have refused to meet publicly.

Here’s where the plot thickens. The Romerica Group does not legally exist in Texas. The Texas Secretary of State lists no such company. Romerica Group’s phone has been disconnected. The Group’s website contains broken links to other supposedly related companies, such as Romerica Real Estate. The Texas Real Estate Commission lists Romerica Real Estate as inactive. And their American Vision site as been linked by International Appraiser to fake projects seeking investments from foreigners in exchange for visas.

So Many Questions, So Little Time; Developers Refuse to Meet

These observations raise many questions. Despite the developers’ claimed “commitment to dialog with stakeholders at every level,” they have refused to meet publicly to answer questions before the end of the Army Corps’ comment period. I have personally requested a meeting by phone, email, or certified mail seven times in the last seven weeks – all to no avail.

Developers commonly use different companies to acquire, sell, or subdivide land. That doesn’t bother me. The fact that registrations for so many of these companies contain inconsistencies, inaccuracies, misspellings, wrong addresses, aliases, broken links, dead ends and disconnected phone numbers does concern me.

None of the companies shows projects they have completed. Sometimes one company lists another as the owner, but the companies may be incorporated in different states or different countries. Plus they’re selling:

My advice: Buyers beware. I use the term “buyers” in a global sense to include officials granting permits. I’m not buying any of this.

As always, these posts contain my opinions on matters of public policy which are protected by the First Amendment of the US Constitution and the Anti-SLAPP statute of the Great State of Texas.

Posted by Bob Rehak on February 14, 2019

534 Days since Hurricane Harvey

Manlove Changing High-Rise Website, but Problems Remain

Last night, I posted about some problems with the copy in the new website for the high-rise Kingwood Marina project. This morning, The Manlove Agency started changing the copy in many of the FAQs without explanation. Their disclaimer did not change, however.

I have screen captures of the original text. If anyone wants to see it, please email me.

Rather than do an hourly critique of the website, I’m going to give them a day or two to vet their facts. Then I will revisit it. Use extreme caution in the meantime. For instance,:

  • Their video still says they will have slips for 800 boats. But the Army Corps’ public notice states 640. A huge “disconnect”!
  • The copy still states that Romerica Group will now develop the property. The Texas Secretary of State has no listing for a Romerica Group. The phone number listed in their website is disconnected. And their name appears nowhere on the permit application.
  • The copy still says the development will be 364 acres although the Corps Public Notice states 331.
The developer has acquired all of the property in red, but only the portions marked Project Area are included in the current project.

Fixing One Problem Creates Another

Yesterday, I pointed out that raising the property to 57 feet would not make them flood safe. Manlove revised yesterday’s copy to suggest that the buildings will now have an additional five feet of fill beneath them. The developer will now raise them 17 feet above their current elevation, not 12 as stated in the original permit application. This would result in the loss of more than 1800 acre-feet of floodplain storage capacity and could impact surrounding communities.

Offending Copy About Permit Approval Removed

Manlove removed the copy about the City, County and Corps permitting the site for construction after finding no impact on surrounding communities. I confirmed with Harris County Flood Control that they never issued a permit for the property. The Corps is currently evaluating a permit. Hence, this public comment period. I’m confirming whether the City issued a permit to begin excavation.

No Public Meeting

The developers have refused to meet with the community to address the many concerns surrounding this project. I have personally tried SIX times to set up such a meeting. They agreed to have a private meeting with me. I said I would agree if I could videotape it. They refused. So the private meeting was cancelled, too.

As always, the content of this post represents my opinions on matters of public policy. Those opinions are protected by the First Amendment of the US Constitution and the Anti-SLAPP statute of the Great State of Texas.

Posted on February 13, 2019, by Bob Rehak

533 Days after Hurricane Harvey

High-Rise Developers Make New Claims, Give Themselves Most Generous Disclaimer in History of Words

The developers of the proposed high-rise development near River Grove Park launched a new web site today, TheHeronsKingwood.com. In it, they make many new claims designed to put the public’s concerns to rest. It had the opposite effect on me. Why?

  • They told the Corps the Marina would hold 640 boats. It’s 160 boats larger now. The website video states 800.
  • The Army Corps thinks the development is 331 acres. The website claims 364.
  • After telling community leaders they would hold a public meeting before the close of the comment period, they now say after.
  • After previously touting their connections to an Italian architectural firm, Torrisi and Procopio (which I suspected was a fake site), they now say Skidmore Owings and Merrill (SOM) developed the design. But SOM in San Francisco referred me to their legal department, which did not take my calls. The Italian site was developed in English and registered in Aruba by a Canadian Company.
  • They now claim that a subsidiary of Romerica Investments, the Romerica Group, will develop the project. They claim Romerica Group has existed since 2007 and is located in Houston. The Texas Secretary of State has no listing for Romerica Group. Neither do Florida, Delaware or Alberta, Canada – other known locations where the developers have incorporated. The phone number listed on the Romerica Group website is disconnected. The office was unoccupied last time I checked several weeks ago.
  • “Romerica Group” does not appear on any of the permit applications associated with this project at the Army Corps, City of Houston or Harris County Flood Control.
  • Romerica Investments does not own the property being permitted.
  • They claim that 25-story condominium towers are single family homes. That’s the world’s largest family!
  • They say that only the northern half of the development is subject to height restrictions without offering any proof that “single-family residential” deed restrictions have been removed from the southern half.
  • They claim they’re creating a connection to Hamblin Road (sic), which the Corps Public Notice does not mention and no one in Forest Cove seems to know about.
  • They claim that “Both the city and county have approved construction and permits have been issued, they have determined that the community will not have an adverse effect on surrounding communities.” This makes it sound like they have been given permits for the entire development. Not true. Neither is the second half of the statement. Developers requested a permit to start excavating the marina. They promised they would haul excavated material offsite. However, things changed by the time the Corps issued its public notice. The public notice states that they will use the fill to raise the elevation 12 feet. Hmmm. Sounds like cause to revoke those permits to me!
  • They again claim that raising elevations to 57 feet will make the buildings flood safe when the area has flooded over 57 feet at least six times in the last 25 years.
  • They call roads an alternative mode of transportation!
  • They think ExxonMobil is spelled Exxon Mobile.

But the best part is this! Read the disclaimer. It’s the most self-generous disclaimer in the history of words. Nobody is responsible for anything the site says. Make sure you read the fine print.

Ain’t nobody responsible for nothin’.

As always, this post represents my opinions on matters of public policy. They are protected by the First Amendment of the United States Constitution and the Anti-SLAPP Statute of the Great State of Texas.

Posted by Bob Rehak on February 12, 2019

532 Days since Hurricane Harvey

History of Proposed High-Rise Property Tied to Flooding For Decades

Romerica Investments proposed high-rise marina property has a long history of flooding. In fact, the flooding which has gotten progressively worse through the years, has stymied one developer after another.

The property flooded 52 times since Lake Houston was built in 1955. That means it floods almost every year. And in the last year (February ’18 to January ’19). it flooded SIX times.

Timeline Shows Link Between Flooding, Sales, Lawsuit

As you review this chronology, clicking on the links will take you to the actual deeds. Here’s a timeline that shows how sales of the property relate to water and flooding. As you review it, remember all deed restrictions run with the land. That means they carry forward from one buyer to the next…unless the original entity imposing the restrictions consents to removing them.

Notice how subsequent transfers summarize restrictions in the earlier transfers: “This conveyance…is made and accepted subject to any and all … restrictions … relating to the property, but only to the extent that they are … shown of record in the herein above mentioned County…”

We could find no documents in county records removing the single-family residential restriction that Friendswood Development Company placed on the property. The developer has provided none to date.

Title and Flood History

  • 1950 – Foster Lumber Company sells 3200 acres to City of Houston for the purpose of creating Lake Houston.
  • 1955 – Lake Houston created.
  • 1973 – City of Houston sells two tracts of land not inundated by Lake Houston to Friendswood Development Company and King Ranch. City puts several deed restrictions on property. The significant ones: 1) No use that could alter the reservoir capacity of Lake Houston through fill or erosion. 2) Any fill must be compensated with excavation immediately adjacent to the fill. 3) City reserved the right to enforce pollution controls on activities up to the 51 foot contour elevation line. This is significant because it would include marina operations. The Lake and river normally pool at 42.5 feet back to the US59 bridge.
  • 1994 – In October, historic flooding hits area. Crest at US59 = 67.30 feet.
  • 1994 – On December 30, Friendswood and King Ranch sell property to Holley-Strother Kingwood Lakes Estates, LTD. Deed restrictions limit property use to “single family residential homes with accompanying greenbelt, park, pool, recreational facilities and for no other purpose or purposes” for a period of 40 years. Also, drainage cannot be altered in a way that affects surrounding property. Finally, before the developers could begin construction, they had to get a declaration of use restrictions affecting all the property approved in writing by the grantor. This would force homebuyers to abide by the deed restrictions, too.
  • 1998 – West Fork crests at 60.1 feet at US59 on 11/15.
  • 2001 – 2007 – River crests above 50 feet inundating Holley-Strother property seven times in seven years.
  • 2007 – June 18, FEMA approves new Flood Insurance Rate Maps (FIRMS). This put a large part of the Holley Strother property in the floodway for the first time. City of Houston also adopted a new ordinance that prohibited the City Engineer from permitting any buildings in a floodway.
Current flood map used by FEMA and CoH is dated 6/17/2007. Expansion of floodway (crosshatched area) kept Holley-Strother from developing land. COH rules prohibit building in floodway. Current developer appears to be rushing to get property permitted before flood maps are updated again. Updates will likely show all high-rise portion in floodway.
  • 2008 – West Fork floods and crests at 62.8 feet at US59 on September 18. Holley and Strother excavate a lake on the southern portion of their land to help build up the level of the Barrington, which is still under construction. On September 30, Holley and Strother sue the City. They claim that the City Ordinance against building in the floodway constitutes “illegal taking” of their land under the 14th amendment of the U.S. Constitution.
  • 2009 – 2012 – Floods above 50 feet inundate the property three more times.
  • 2015 – 2016 – Property floods SIX more times between March, 2015 and May, 2016. Highest crest at US59 is 61.95 feet on 5/29/16.
  • 2017 – On August 29, Hurricane Harvey sets new record for highest crest on the West Fork – 69.18 feet.

Questions Remain

And so history repeats itself. The current rush to beat redrawing of the flood maps reminds one of the events in 2007 and 2008.

I have numerous questions about this project. About the safety of building high rises in an old meander of the San Jacinto. About the wisdom of approving a permit to build such immense structures on the edge of the floodway – when we know the flood maps will soon be revised again. About expanding a marina toward the river when the river is migrating toward the marina at the rate of 20 feet per year.

Who are These People?

Meanwhile, I’m also struggling with questions about the developers. I’m struggling to understand the maze of companies, partnerships, addresses, and registrations in other states and countries. These two men have 19 entities here in Texas alone.

This raises so many questions that I hope the Corps extends the public comment period yet again until we can learn who these men are and where their money comes from. The community needs to understand who we are dealing with. But they have not yet consented to a public meeting despite numerous requests.

As always, these are my opinions on matters of public interest. They are protected by the First Amendment of the US Constitution and the Anti-SLAPP statute of the great State of Texas.

Posted by Bob Rehak on February 6, 2019

531 Days since Hurricane Harvey

Rehak Letter about Proposed High-Rise Development Spells Out New Concerns

For the past six weeks, I’ve struggled to understand what the Army Corps considers when reviewing a new permit application. I have also struggled to organize everything I learned about the high-rise project, and the applicant. My protest letter re: Public Notice SWG-2016-00384 will be emailed today. It’s too long to include within the body of this post, so I’m going to include a summary here and a link to a PDF of the entire letter.

Water skiing, anyone? Photo by Sidney Nice of Atascocita Point after Harvey.
Imagine trying to evacuate 640 40-boats before a storm. The biggest threat to water quality is the one thing in this development that needs to be near the river: the marina.
 

Main Concerns

My main concerns are:

  1. This development appears to violate legally binding deed restrictions. We can find no documents registered with the county clerk that legally change allowable land use from “single family residential” to commercial, retail and hotel high rises.
  2. An article in International Appraiser lists these developers among EB-5 regional centers touting fake projects.
  3. Although the developers claim to have development experience, they have shown none. 
  4. Dunn & Bradstreet lists Romerica Investments, LLC (the applicant) as having no sales, no assets, no working phone, and being out of business. Romerica Investments also does not own the property for which it seeks the permit. 
  5. The developers many websites touting this project appear to violate rules from the SEC, FTC, FINRA, National Association of Realtors, and Texas Real Estate Commission governing real-estate investment advertising. See letter section 15 (e) XX on page 15.
  6. The developers are foreigners who operate through a maze of companies that makes it hard to understand whom the community is dealing with.
  7. The developers are being sued by investors for fraud. 
  8. They have provided no market research to demonstrate a need for this kind of development in the Kingwood area. The little market research we found raises serious concerns about their experience, due diligence, the feasibility of this project, and whether it would be economically viable.
  9. The developers propose to build high-rises in an area that will soon be reclassified as floodway. Moreover, the river is migrating toward this property at a rate that could soon destroy it. This raises significant concerns about public safety, flood risk, evacuation, and the stability of buildings.
  10. If approved, this development will destroy bald eagle habitat, impair water quality, increase erosion, and worsen flooding.
  11. Developers have not responded to multiple requests to meet to clear up questions.

Needs and Welfare of the People

Many environmental, wildlife, flooding, and conservation concerns have been expressed in previous letters by the Sierra Club, Galveston Bay Foundation, KSA and others. I recap most of those and add a few. But I also have spent much time researching a category called “Needs and Welfare of the People.”

One huge thing I believe we need: Confidence in the legitimacy of the developers.

Their refusal so far to appear at a public meeting to answer questions about their development raised red flags. I found many others. Four pages worth. See pages 16-19 in the letter. A small sampling:

The people of Kingwood don’t need another Gucci outlet as much as they need freedom from flooding. I therefore called for a moratorium on all flood plain permitting until flood mitigation measures can be put in place and safety restored.

Conclusion

Any one of these factors by itself might be sufficient to deny the permit request. Taken together, they leave no doubt; the negatives far outweigh any positives. According to Army Corps guidelines, the permit must therefore be denied. Too many questions remain unanswered about the developers and the development to approve this permit.

Sending Copies to Other Agencies

In addition to the Army Corps, I am copying:

  • TCEQ
  • Texas Parks and Wildlife Department 
  • US Fish and Wildlife Service
  • EPA
  • Congressman Dan Crenshaw
  • Senator John Cornyn
  • Senator Ted Cruz
  • Houston City Council Member Dave Martin
  • Harris County Flood Control
  • FBI

Only 3 Weeks Left to Register Your Objections

Deadline: March 1. If you haven’t yet sent your letter, please do so right away. Only 400 letters have been received so far by the Corps. Time is running out. You can download the full text of my letter. You can review and download other sample letters here. Feel free to copy any portions of the letters that reflect your concerns.

Or send them in their entirety and say, “I agree!” Here’s a customizable word.doc that you can download and send. Remember to insert your name and contact information on the first page and your name again on the last page. You can then send it by clicking on the links in the letter.

I am sending my letter only in a digital format because of all the hyperlinks embedded in it.

Emailed Letters Preferred

The recipients have expressed a desire for electronic versions over paper copies anyway. Electronic makes it easier for them to forward and file the documents; no scanning necessary.

As always, the thoughts in the letter and this post represent my opinions on matters of public interest. They are protected by the First Amendment of the United States Constitution and the Anti-SLAPP statute of the Great State of Texas.

Posted on February 9, 2019 by Bob Rehak

529 Days since Hurricane Harvey