Texas Attorney General Ken Paxton, working with President Donald Trump’s Department of Justice, announced a $68 million settlement against the developers of Colony Ridge, an expanding residential development in Liberty County north of Houston.
The settlement resolves two federal cases: a 2023 lawsuit brought by the U.S. Department of Justice and the Consumer Financial Protection Bureau, and a 2024 lawsuit filed by the Texas Office of the Attorney General. Both actions alleged deceptive lending and marketing practices connected to the development’s owner-financed home sales.
“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,” U.S. Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division said in a February 10 press release.
Colony Ridge, also known as Terrenos Houston, is operated by brothers Trey and John Harris. The development has existed for more than a decade and is estimated to house more than 50,000 residents—roughly half the population of Liberty County. It has advertised owner-financed land purchases that do not require credit checks or proof of legal residency.
In a February 10 press release, Paxton described Colony Ridge as a “de facto illegal immigrant community.”
“This DOJ will go after all lenders, financiers, and land developers who participate in schemes which ultimately encourage illegal immigration,” Dhillon said.
Under the settlement, at least $20 million will be allocated to law enforcement, including funding for a law enforcement center in the area. Some of the funding may be used to establish 287(g) agreements, which allow state or local law enforcement agencies to partner with U.S. Immigration and Customs Enforcement on immigration enforcement.
“Additionally, the developers will be forced to pay tens of millions for the improvement of infrastructure, such as roads, to create a legitimate and livable community suitable for U.S. citizens — not an underdeveloped slum designed for black market sales to illegals,” Paxton said.
The agreement also freezes the sale of new plots of land at Colony Ridge for three years, restricts purchases by individuals from certain countries including China and Iran, and requires stricter underwriting and identification standards. Paxton said these measures are intended to “ensure Colony Ridge never again is a haven for illegals.”
The development has drawn national attention in recent years due to concerns raised by state and federal officials about illegal immigration and criminal activity in the area. In February 2025, ICE announced 118 arrests following a multi-agency operation targeting alleged crimes ranging from homicide to drug trafficking.
“[ICE] are targeting criminals and illegal immigrants. I have worked with [Border Czar] Tom Homan on this for months,” Gov. Greg Abbott said at the time.
Around the same period, authorities announced the arrest of three individuals described as illegal immigrants and the seizure of 350 pounds of methamphetamine. Officials said the individuals had each previously been deported multiple times.
