Colony Ridge, a large land development located northeast of Houston, Texas, has continued its marketing strategy targeting the Spanish-speaking population, despite facing a lawsuit from the Department of Justice (DOJ) for alleged predatory lending practices. The development, which spans approximately 60 square miles and houses an estimated 50,000 to 75,000 residents, has been a focal point for illegal immigrants.
The DOJ, in conjunction with the Consumer Financial Protection Bureau (CFPB), filed a lawsuit against Colony Ridge, accusing the developers of engaging in a cycle of foreclosure by targeting Hispanic borrowers with misleading statements and predatory loans. Despite these serious allegations, Colony Ridge has persisted in its marketing efforts, particularly on social media platforms like Instagram, where it advertises land offers to potential buyers without requiring credit checks.
Colony Ridge’s Instagram account, under the name “Terrenos Houston,” prominently features the phrase “no necesita crédito” (no credit needed) and posts ads in Spanish, emphasizing the ease of buying land in the United States without a credit history. These advertisements have been criticized by public officials for allegedly enabling illegal alien settlement in America and enticing vulnerable foreign populations with the promise of low-cost, no-question property.
The development’s loan operations are largely based on Individual Taxpayer Identification Numbers, which are often used by illegal immigrants who do not have Social Security numbers. The DOJ and CFPB’s lawsuit specifically targets Colony Ridge developers William “Trey” Harris and his brother John Harris for selling plots of land lacking basic infrastructure and prone to flooding.
Despite the federal lawsuit, Colony Ridge’s marketing campaign remains unchanged, with recent Instagram ads continuing to promise potential buyers the opportunity to own land in the United States without credit checks. This approach has drawn criticism for its high foreclosure rate, as nearly half of the 35,000 properties sold by Colony Ridge have reportedly ended up back in the hands of the development, with buyers facing a 12.9% interest rate.
The situation at Colony Ridge has gained national attention amid record-high illegal immigration numbers and investigations by various federal agencies, including the Environmental Protection Agency, the Internal Revenue Service, the Army Corps of Engineers, and the Texas Commission on Environmental Quality. The development has also been the subject of legislative attention in Texas, with Governor Greg Abbott allocating funds for patrolling the area.
Colony Ridge’s ongoing marketing strategy and the legal and regulatory scrutiny it faces highlight the complex issues surrounding land development, immigration, and consumer protection in the United States.