Feds sue developers of ‘colony’ north of Houston accused of being ‘haven for illegal aliens’

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Feds sue developers of ‘colony’ north of Houston accused of being ‘haven for illegal aliens’

The wall may close in on Colony Ridge, a controversial “colony” north of Houston, Texas, which has been labeled a “magnet” for crime and illegal immigration.

Now two federal agencies – the Department of Justice and the Consumer Financial Protection Bureau – have filed suit against the company behind the 40-square-mile tract of homes, trailers and tents, housing as many as 75,000 people in one area. at least 50 percent larger than Manhattan.

The agencies accused the companies, ultimately owned by multi-billionaire brothers John and William “Trey” Harris, of predatory lending and misleading advertising.

The Harris brothers offer mortgages without Social Security numbers and told Texas Monthly that they believe the majority of Colony Ridge residents are undocumented immigrants from Latin America.

And, The Post was told, other federal and state agencies are also investigating the development, including the IRS, the Environmental Protection Agency, the Army Corps of Engineers and the Texas Commission on Environmental Quality.

Colony Ridge is a sprawling development outside of Houston that is at the center of various federal and state probes. The Department of Justice and the Consumer Financial Protection Bureau allege that the developer has preyed on vulnerable residents. Go Nakamura for New York Post developer Colony Ridge used slick marketing ploys to attract Latino homebuyers to Colony Ridge, but the DOJ and CFPB claimed that the prices they represented were false. lotesyranchos/Instagram A map showing the location of Colony Ridge, which is about 35 miles north of Houston, Texas.

The joint DOJ-CFPB lawsuit, filed in federal court in Houston, accuses Colony Ridge Development LLC and its affiliates of using a bait-and-switch scheme to attract Latino homebuyers by advertising the fantasy of low-cost housing with full amenities — but instead selling them homes on the property. which are prone to flooding where they sometimes have to pay thousands for water meters or sewer connections.

It alleges that the developer lured homebuyers with advertisements in Spanish while providing important transaction documents solely in English.

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Colony Ridge developers have long lured Latin Americans and newcomers from Central and South America with slick ads promising cheap land and low down payments.

When The Post visited in October, we found a sign reading “¿No crédito? No problem!” adorns a 40-square-mile development on unincorporated land about 35 miles north of Houston.

Colony Ridge advertising promises the American dream and almost all of it is in Spanish. lotesyranchos/Instagram The DOJ and CFPB claim the advertising is part of a bait-and-switch that rips off people trying to buy there. lotesyranchos/Instagram Several dilapidated homes in Colony Ridge that critics and locals say are part of what has become a “no-go zone” for law enforcement. Go Nakamura for the New York Post

Both local residents and law enforcement sources told The Post they believe the Sinaloa and Gulf cartels bought properties here earlier and have considerable influence.

Texas Department of Public Safety statistics say there will be 12 homicides in Liberty County — which covers most of Colony Ridge — in 2022, compared to just one in 2011.

After The Post exposed the filthy living conditions at Colony Ridge, the left-leaning Texas Monthly responded with a story titled “What’s Behind the Bizarre Freak-out over Colony Ridge.”

“Exurb Houston offers cheap land to hard-working families. But some in the GOP see benefit in vilifying immigrants who have moved there,” the magazine wrote.

The DOJ and CFPB allege that Colony Ridge used advertising in Spanish like this. Terrenos Houston/ Youtube But they claim other key documents are in English and contain predatory clauses. Terrenos Houston/ Youtube The developer advertises “ITINs accepted,” which means that people without a Social Security number can apply for financing. But the DOJ and CFPB claim that they are being exploited with a bait-and-switch. NY Post

But, The Post has learned, the League of United Latin American Citizens (LULAC), the nation’s oldest and largest civil rights organization, is also investigating Colony Ridge, and has added its voice to federal agencies accusing its owners of heavy-handed predation. -working Latin Americans.

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Domingo Garcia, president of LULAC, said Colony Ridge is a “stark example” of the financial injustice that plagues Latinos in Texas.

About one in four Colony Ridge loans end in foreclosure, leaving families financially devastated, LULAC said.

“LULAC strongly supports the decision of the DOJ and the Consumer Financial Protection Bureau on behalf of Latinos who have lost millions of dollars of their hard earned money,” he said.

John Harris, one of the two brothers who developed Colony Ridge, rejected the allegations from the DOJ and CFPB and said in a statement that he looked forward to the “true story” of the development being told. LinkedIn William “Trey” Harris, another developer of Colony Ridge, also rejected the allegations made by the DOJ and CFPB. He and his brother told Texas Monthly that they believe the majority of residents do not have legal status. Dolcefino Consulting/YouTube

“Worse, their dream of owning a home has been ripped away, and they have been left with a nightmare of financial loss and uncertainty about where they and their families will live.”

Robert Rehak, a former prominent Chicago advertising executive who moved to the area south of Colony Ridge after retirement and writes a blog, Reduce Flooding, where he has chronicled the damage caused by what he says is poor drainage on developments since 2020, said LULAC’s involvement shows the issue is not right-wing “craziness”.

“LULAC is pretty big in Texas and their involvement will open the door to more things,” he said.

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“It’s a signal that this has gone beyond the right-wing media. It’s not just a bunch of kooks out to get illegal immigrants.”

Rehak is one of a number of activists in the area fighting Colony Ridge — many of whom have been called bigots or racists against Latinos even though some of them are Latinos themselves.

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Maria Acevedo, 51, a Latin American, bought a lot in Colony Ridge in 2018 where she planned to build a house with her husband.

The damaged state of Colony Ridge homes, seen in aerial images taken by local campaigners who say they have caused environmental damage. The Post has learned the Environmental Protection Agency is investigating the development. Robert Rehak/ ReduceFlooding.com

But she told The Post she lost everything after making a small down payment on the $39,000 property, only to discover a mysterious $7.6 million lien on it, ultimately walking away from the deal with nothing to show for it.

“To know that this government entity is finally paying attention and going after these people is just a priceless feeling,” Acevedo told The Post this week.

“We have been the voice of many voiceless Latinos in Colony Ridge. It’s outrageous how developers act like they’re favoring Hispanics when in fact they’re taking advantage of us and ruining lives.”

Federal regulators allege that the Colony Ridge developer used flashy ads to attract Latino buyers, then exploited them and failed to present important documents in Spanish. When The Post visited Colony Ridge in October, we found evidence of appalling conditions in some parts of the development, while local campaigners provided aerial photographs showing the dire conditions found there. Robert Rehak/ ReduceFlooding.com

Colony Ridge CEO John Harris said in a statement that the developer was “blindsided” by the lawsuit.

“The claims are baseless and both outrageous and inflammatory,” he said.

“Our business thrives on referrals because landowners are happy and able to experience the American Dream of owning real estate.

“We give loans to those who don’t have the opportunity to get loans from others and we are proud of the relationships we build with clients. We look forward to telling the true story of Colony Ridge.”

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Source: thtrangdai.edu.vn/en/