The owners of Colony Ridge, a Houston-area developer accused of running a predatory lending scheme that deceived Latinos, have agreed to a sweeping legal settlement aimed at addressing various allegations against them. This settlement mandates the developers to invest in local law enforcement and infrastructure improvements while also tightening their sale and lending practices.
Key allegations against Colony Ridge include accusations of selling land to undocumented individuals, contributing to a crime-prone enclave about 30 miles from Houston, allegedly under the control of Mexican drug cartels. Despite these claims, the developers denied the communities were unsafe, asserting their position was backed by local officials' testimonies.
The agreement requires Colony Ridge to implement stricter buyer documentation requirements, ensuring that prospective purchasers must provide a Texas ID, driver's license, or a passport, making it impossible for undocumented immigrants to qualify. Other terms include a three-year pause on new residential developments, spending $48 million on infrastructure projects, and allocating $20 million for law enforcement enhancements.
Texas Attorney General Ken Paxton emphasized that the developers will face substantial consequences for their prior actions. The settlement has been hailed as a victory against targeting vulnerable populations with exploitative lending practices.
With this settlement, Colony Ridge aims to move forward, adhering to regulations that protect both its residents and community integrity, while simultaneously responding to the concerns raised by the state and federal authorities.
