Houston-area developer Colony Ridge reaches $68 million settlement with Texas, feds

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Houston-area developer Colony Ridge reaches $68 million settlement with Texas, feds
CourtsState GovernmentAttorney General's Office
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The agreement seeks to remedy a variety of concerns raised by government officials, who accused the development’s owners of targeting Latino homebuyers with predatory loans and false promises.

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DHS says ICE is not arresting children at schools after report on immigrant student drop in Houston Read full article: DHS says ICE is not arresting children at schools after report on immigrant student drop in HoustonHonduran national charged with super aggravated sexual assault of 4-year-old in HoustonImages of the suspects HPD releases surveillance images of suspects in armed robbery at Houston convenience store on New Year’s Eve Read full article: HPD releases surveillance images of suspects in armed robbery at Houston convenience store on New Year’s EveThe owners of Colony Ridge, a Houston-area developer accused of running a predatory lending scheme that deceived Latinos, agreed to a sweeping legal settlement that will require them to invest in law enforcement and infrastructure on their properties and tighten selling practices to address a range of accusations from Texas GOP leaders and conservative media.was that Colony Ridge developers sold land to undocumented people, giving rise to a crime-ridden complex of subdivisions about 30 miles outside Houston allegedly being run by Mexican drug cartels., Colony Ridge’s owners agreed to clamp down on the documentation it requires from buyers. Would-be purchasers will now have to present a Texas ID or driver’s license — which undocumented immigrants cannot obtain in Texas — or a passport or visa. The agreement did not specify that the passport has to be an American one.the owners of Colony Ridge lured would-be Spanish-speaking homebuyers into seller-financed mortgages with high interests that they could not afford. By federal authorities’ estimate, roughly one in four Colony Ridge loans resulted in foreclosure. The company would then flip those properties to new unsuspecting customers eager to become homeowners, court filings allege. The federal case, filed by the Biden administration’s Justice Department in late 2023, also accused Colony Ridge of misrepresenting facts such as guarantees of water, electricity and sewer hook-ups and whether properties had previously flooded.Pause seeking approvals for any new residential plats for three years.Ensure that its advertising and marketing is truthful.Offer discounts to peace officers in an effort to encourage them to live in the development. Earmark $20 million for law enforcement, including the construction of a new police station within the community and money specifically for immigration enforcement.In a statement, Paxton said the settlement had resulted in Colony Ridge’s owners paying “a steep cost for their unlawful actions.” “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,” Paxton said.“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,” Dhillon said. “This DOJ will go after all lenders, financiers, and land developers who participate in schemes which ultimately encourage illegal immigration.” The agreement appeared to please both immigration hardliners and those who had advocated on behalf of residents for years, raising alarms about the development even before it became a conservative lightning rod. Michael Quinn Sullivan, publisher of the right-wing Texas Scorecard, which helped draw conservatives’ attention, said that the settlement “functionally means Colony Ridge is no longer a safe haven for illegal aliens.” He called it a “huge win on a major issue” for Paxton — currently in a heated GOP primary for U.S. Senate — and Dhillon. SuEllen Sanchez, who with her sister had filed complaints with state agencies about Colony Ridge years ago, struck an optimistic tone in aWrong-way driver crash on East Freeway leaves woman critically injured, other driver dead3 Consequences Students Face for School WalkoutsHomeowners say solar savings promised, higher bills delivered

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