HOUSTON — Colony Ridge, a land developer outside of the Houston area, has agreed to pay a $68 million settlement following a series of lawsuits from the state accusing them of predatory lending and selling to undocumented immigrants.
In 2025, the housing development was raided by U.S. Immigration and Customs Enforcement (ICE) officers, and there were over 100 arrests made. There have been accusations of the developer selling to undocumented immigrants, along with them being under investigation by the U.S. Department of Justice (DOJ) since 2023, according to a Spectrum News report.
According to the agreement, Colony Ridge denied any wrongdoing but will have to seek approval for three years to sell homes directly to consumers. They will also have to require that their homebuyers have proper documentation and work with law enforcement to prove that prospective buyers aren’t affiliated with terrorist organizations.
The decision sets $48 million of the $68 million aside to be used for infrastructure improvements for their neighborhood. The Texas and United States governments are making them implement a “General Infrastructure Improvement Plan.”
“[The plan] will allocate forty-eight (48) million dollars to infrastructure improvements within the Colony Ridge development and will prioritize existing repair needs ahead of any new development. The General Infrastructure Improvement Plan should aim to reduce and prevent flooding, improve roads, provide for proper management of sewage and other waste, and invest in other projects designed to improve the habitability and public safety of Terrenos Houston Subdivisions for the benefit of their residents,” the decision stated.
Along with the infrastructure improvements, the developer will have to work with law enforcement for an approximate $20 million for various agreements and implementations over the course of 10 years.
Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division, who was a part of the litigation process, was thankful for the outcome in a release from the Justice Department.
“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 changes required by this settlement will promote public safety, and affordable and sustainable homeownership in America, key priorities of this Administration.”
Colony Ridge has three months from the effective date of the suit to get most of their new policies implemented.