By David Taylor / Managing Editor
Attorney General Ken Paxton, in coordination with the U.S. Department of Justice, has announced a landmark $68 million settlement with Colony Ridge Land LLC and its affiliates, resolving allegations of predatory land sales and lending practices targeting Hispanic borrowers near Houston, Texas.
The settlement, hailed as a major victory by state and federal officials, halts the development of what Paxton described as a “de facto illegal immigrant community.” The agreement includes a freeze on new residential platting for direct-to-consumer sales for 36 months and prohibits sales to individuals from certain designated countries, including China and Iran.
“Under my watch, Texas will never be a sanctuary for illegals. Colony Ridge endangered American citizens by allowing illegal aliens to run rampant on its streets, in its schools, and in its community. Now, it’s time for those responsible to pay a steep cost for their unlawful actions,” said Attorney General Paxton. “My office will continue to bring the full force of the law against anyone who threatens the safety of our state or creates a safe harbor for illegals.”
But crime stats from several sources show that the community has no more crime than any other community around the state, even less than that in Houston.
The Justice Department’s Civil Rights Division also emphasized the settlement’s impact on public safety and housing affordability.
“Intentionally targeting vulnerable borrowers with the American dream of homeownership and then trapping them in a predatory scheme is not only wrong, it also violates our civil rights laws,” said Assistant Attorney General Harmeet K. Dhillon. “This DOJ will go after all lenders, financiers, and land developers who participate in schemes which ultimately encourage illegal immigration.”
Key provisions of the settlement include $48 million invested in infrastructure improvements, with $18 million earmarked for drainage to address flooding risks.
Most of the roads in Colony Ridge have concrete roads, and each lot has water and power connections. Homeowners are required to call the local providers for water taps and electric hookups for service like all other homeowners.
Another $20 million has been allocated to law enforcement efforts, including the construction of a new law enforcement center. Currently, officers already work out of a sub-station that was built by the developers.
The government also insisted on the adoption of stricter underwriting standards to assess borrowers’ ability to repay loans.
Additionally, implementation of policies to reduce foreclosures and protect borrowers’ credit was also agreed to as well as honest and accurate advertising and pre-sale disclosures about property conditions.
New identification requirements are also required for buyers to prevent future abuses.
Liberty County Judge Jay Knight, whose county encompasses Colony Ridge, praised the settlement. “We applaud the efforts of the Department of Justice and the State Attorney General’s office in reaching an agreement with the Colony Ridge principals. Our hopes are that it will make that area of our county successful in the future.”
Knight and the current commissioners came into office after the community was established and platting began.
The settlement resolves lawsuits filed by both the Civil Rights Division and the Texas Attorney General’s office, marking a coordinated effort to address predatory practices and ensure compliance with civil rights and housing laws.
Colony Ridge denies any wrongdoing in the settlement. The developers point out that they have given land for new schools, built a community center, and new fire station and substation for sheriffs deputies.
The company still has a massive inventory, and the three-year moratorium shouldn’t slow them down.
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