No more 'safe harbor for illegals': Colony Ridge settles with DOJ, Texas

Colony Ridge, one of the most controversial land developers in the nation, has reached a settlement with the Department of Justice and the state of Texas regarding accusations of predatory loan practices, poor living conditions, and incentivizing illegal immigration.

According to a DOJ press release issued Tuesday, the Colony Ridge developer has agreed to pay $68 million to settle the lawsuit. Of that sum, $48 million will be invested in shoring up local infrastructure: $30 million for general infrastructure, and $18 million for drainage systems "to address severe and costly flooding damage to homes."

'Colony Ridge endangered American citizens by allowing illegal aliens to run rampant on its streets, in its schools, and in its community.'

The other $20 million will be invested in improving law enforcement and public safety in the area, including the construction of a new law enforcement facility. The developer also pledged to work with law enforcement to prevent those on a terror watch list and those suspected of transnational gang membership from purchasing property there, the settlement agreement said.

RELATED: Water issues at Colony Ridge and the Texas officials who apparently did nothing about them

According to the DOJ, Colony Ridge also agreed to:

• implement stricter underwriting standards that better assess borrowers' ability to repay loans;
• avoid misleading advertisements and instead "truthfully and accurately describe the properties for sale and applicable loan terms";
• work with homeowners to prevent loan default and foreclosure; and
• suspend seeking final approval on plats for direct-to-consumer sales for three years.

As part of the settlement, the Colony Ridge defendants did not admit to any wrongdoing. In fact, the defendants "expressly" denied any wrongdoing and signed off on the agreement "solely for the purpose of facilitating a settlement" with Texas and the DOJ, the agreement noted.

"We're happy to resolve these lawsuits and move forward serving our growing community. The settlement allows us to continue investing in our neighborhoods and supporting the thousands of families who have trusted us to provide a place for them to call home. We're glad that funds from this agreement will be directed back into the community to benefit residents," said a statement from Colony Ridge, according to KTRK.

A sprawling, 33,000-acre development just north of Houston once dubbed "the world's largest trailer park," Colony Ridge first made national headlines more than two years ago after the development was accused of luring mainly Spanish-speakers into loans with exorbitant interest rates, often leading to foreclosure. Texas Attorney General Ken Paxton previously claimed that the foreclosure rate at Colony Ridge was 50 times greater than the 2023 national average.

In their respective statements about the settlement, both DOJ Assistant Attorney General Harmeet Dhillon and Paxton drew attention to these disturbing allegations.

"Intentionally targeting vulnerable borrowers with the American dream of home ownership and then trapping them in a predatory scheme is not only wrong, it also violates our civil rights laws. This DOJ will go after all lenders, financiers, and land developers who participate in schemes which ultimately encourage illegal immigration," said Dhillon of the DOJ Civil Rights Division.

RELATED: Colony Ridge will sell to illegal aliens for shockingly low down payment: Project Veritas video

Brandon Bell/Getty Images

"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 a statement from 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."

A year ago, ICE made over 100 arrests in Colony Ridge as part of "phase one" of a larger area operation. According to an agency X post dated February 25, 2025, 118 people were arrested, including those with charges or convictions for "criminal sexual conduct, homicide, theft, negligent manslaughter, child sexual abuse, crimes of moral turpitude, weapons offenses and drug offenses."

The Blaze Originals documentary "The Real Story of Colony Ridge" explores many of the problems at the development. You can access this and other original content by subscribing here.

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