Attorney General orders developer to refund or repair colonia lots

Texas Attorney General Gregg Abbott has filed a temporary injunction against Cameron County developer Manuel J. Montemayor, alleging he sold some 26 half-acre lots in the Tierra Linda Gardens subdivision without basic water and wastewater services.

The Attorney General’s Office has given Montemayor and his company, MG Joint Venture, until Dec. 20 to bring the subdivision into compliance with the state’s colonia prevention laws.

Tierra Linda Gardens is located near Papaya Drive and Old Alice Road, south of Highway 100 near Los Fresnos.

The Attorney General’s Office said Montemayor falsely advertised the lots on a billboard claiming the lots included “all utilities.”

Under the injunction, Montemayor must either refund the buyer’s deposits and cancel each purchase agreement or obtain plat approval from the county and install or bond sewer and water services on the lots already sold, the Attorney General’s Office said in a press release.

Montemayor reportedly sold at least two lots for $15,000 and $17,000 each at a 13-percent interest. The Attorney General’s Office said. Montemayor stood to make more than $300,000 had he sold each lot in the development.

The Attorney General’s Office began investigating Montemayor back in October after learning he subdivided a tract into 26 half-acre lots without the approval of Cameron County Commissioners Court.

Approval from local officials is needed to ensure that electrical, water and wastewater services will be available and that the land is not in a flood prone area, the Attorney General’s Office said.