Colony Ridge Reaches Settlement with DOJ and Texas
Colony Ridge, a highly debated land development company, has settled allegations of predatory lending, inadequate living conditions, and promoting illegal immigration with the Department of Justice and the state of Texas.
As per a press release from the Department of Justice, Colony Ridge will pay $68 million to resolve the lawsuit, which was announced on Tuesday. Out of this total, $48 million will go towards improving local infrastructure: $30 million is earmarked for general infrastructure enhancements, while $18 million will focus on drainage systems to mitigate significant flood damage to homes.
“Colony Ridge put Americans at risk by allowing illegal aliens to flourish in our streets, schools, and communities,” stated Texas Attorney General Ken Paxton.
The other $20 million will fund local law enforcement and enhance public safety, including new law enforcement facilities. The developer has also committed to collaborating with law enforcement to prevent individuals on terrorist watch lists or suspected gang members from acquiring property in the area.
In addition to the financial elements, Colony Ridge will implement stricter underwriting standards to better evaluate a borrower’s ability to repay loans. They have also agreed to provide clear, honest descriptions of the properties for sale and the associated loan terms, work with homeowners to curtail defaults and foreclosures, and pause applications for direct-to-consumer sales for three years.
Interestingly, the Colony Ridge developers did not admit to any wrongdoing within the settlement. They specifically deny any misconduct, signing the agreement solely to facilitate resolution with Texas and the DOJ.
“We are pleased to resolve these lawsuits and move forward in serving our growing community,” Colony Ridge remarked. “This settlement allows us to continue investing in our neighborhoods and supporting the families who trust us to provide them a home.”
The extensive 33,000-acre project, located just north of Houston, previously gained national notoriety over two years ago for allegedly luring a predominantly Spanish-speaking demographic into exorbitant loans, leading to high foreclosure rates. According to Paxton, Colony Ridge’s foreclosure rate was said to be 50 times higher than the national average in 2023.
Officials from both the Department of Justice and the Texas Attorney General’s office have expressed concern over these troubling allegations.
“Deliberately targeting vulnerable borrowers who aspire to homeownership and ensnaring them in a predatory scheme is not just unethical but violates civil rights laws,” commented Harmeet Dhillon, Assistant Attorney General of the DOJ.
Paxton emphasized the importance of holding these entities accountable, “On my watch, Texas will never be a sanctuary for illegal aliens. Colony Ridge has endangered American communities. It’s time for those responsible for these actions to face serious consequences.”
Just a year ago, ICE conducted “Phase 1” of a large operation in Colony Ridge, resulting in over 100 arrests, including individuals linked to serious crimes such as murder and drug offenses.
