Here's a more detailed account on what happened that I wrote on lighthousing.net

Somewhere around laste 2000, a business man proposed moving the LH inland and restoring it. Then, turning it into a museum and opening it to the public. 6 months later, a barge was on its way to move the LH inland. On may 2nd, the hurricane struck and due to the rusting piles, the lighthouse gave way to the powerful storm, the newer keepers quarters survived though, because they were added later and the pilings on which they stood were not nearly as rusty.
So, the LH went from this to this .
If that hurricane had come a week later, the LH could've been saved.
Here are some old pics of when it was first build if anyone's interested
Galveston South Jetty Lighthouse Historical Images