Texas Attorney General Ken Paxton has filed a lawsuit against the developers of Colony Ridge, a large housing development northeast of Houston, alleging they have engaged in predatory and fraudulent practices targeting migrants.
Specifically, Paxton claimed Colony Ridge lured migrants in with promises of cheap, undeveloped land and financing without verifying income, while misrepresenting the land’s conditions, rendering it unbuildable.
“Namely, Colony Ridge targets foreign-born and Hispanic consumers with limited or no access to credit with promises of cheap, ready-to-build land and financing without proof of income,” Paxton said.
When migrants are unable to build due to these issues and miss payments, Colony Ridge forecloses on the properties at an alarmingly high rate to resell the land and repeat the scheme.
“A Colony Ridge representative testified before the Texas Senate that CR Land’s foreclosure rate is 12 percent,” the lawsuit stated.
“This alarming figure is roughly 50 times greater than the 2023 nationwide foreclosure rate of 0.26% (roughly 1 in every 400 homes were foreclosed in the United States in 2023). Even in 2009, at the height of the U.S. housing crisis, the foreclosure rate was only 2.22% nationwide (roughly 1 in every 45 homes were foreclosed). On information and belief, Colony Ridge’s profitability rests in no small part on the one-two-punch of its systemic deceptions coupled with this foreclosure operation,” the lawsuit added.
Paxton alleged that the predatory model has greatly enriched Colony Ridge’s developers while forcing neighboring communities to bear high costs and reducing quality of life.
The lawsuit seeks to halt these practices, require full restitution for harmed consumers, and remedy the financial and social toll imposed on the public by Colony Ridge’s alleged scheme.
The development “appears to be attracting and enabling illegal alien settlement in the state of Texas and distressing neighboring cities and school districts,” Paxton said.
Paxton stated that Rep. Ernest Bailes and State Sen. Robert Nichols are guilty of “working to enrich specific developers at enormous expense to the rest of the public and reducing the quality of life for their own constituents” with a “specific arrangement” to enable the scheme to flourish.
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