The walls may be approaching Colony Ridge, the controversial “colony” north of Houston, Texas, that 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 a lawsuit against the companies behind the 40-square-mile sprawl of homes, trailers and even tents, housing up to 75,000 people in a area. at least 50 percent larger than Manhattan.
The agencies accuse the companies, all ultimately owned by billionaire brothers John and William “Trey” Harris, of predatory lending and false advertising.
The Harris brothers offer mortgages without Social Security numbers and told Texas Monthly they believe the majority of Colony Ridge’s population are undocumented immigrants from Latin America.
And, the Post is 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 large development outside of Houston that is at the center of multiple federal and state investigations. The Department of Justice and the Consumer Financial Protection Bureau allege that its developers have taken advantage of its vulnerable residents. Vaya Nakamura for the New York Post The developers of Colony Ridge used clever marketing strategies to attract Latino buyers to Colony Ridge, but the DOJ and CFPB allege that the prices they represented were not true. lotsyranchos/Instagram A map showing the location of Colony Ridge, which is located about 35 miles north of Houston, Texas.
The joint lawsuit between the DOJ and the CFPB, 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 falsely advertising a fantasy of low-cost housing with all utilities, but instead they were sold homes on flood-prone properties, where they sometimes had to pay thousands of dollars for water or sewer meter connections.
It alleges that developers lured homebuyers with Spanish-language ads while providing crucial transaction documents only in English.
Colony Ridge developers have long attracted Latin Americans and newcomers from Central and South America with slick ads promising cheap land and low down payments.
When The Post visited us in October, we found signs that said “No credit? No problem!” that dot the 40-square-mile development on unincorporated land about 35 miles north of Houston.
Colony Ridge’s advertising promises an American dream and is almost all in Spanish. lotsyranchos/Instagram The DOJ and CFPB allege the advertising is part of a bait-and-switch that scams people trying to shop there. lotsyranchos/Instagram Some of the run-down homes in Colony Ridge that critics and locals say are part of what has become a “no-go area” for authorities. Go Nakamura for the New York Post
Both locals and law enforcement sources told The Post they believe the Sinaloa and Gulf cartels bought property here early and have considerable influence.
Statistics from the Texas Department of Public Safety say there were 12 murders in Liberty County, which covers most of Colony Ridge, in 2022, compared to just one in 2011.
After The Post exposed the squalid living conditions at Colony Ridge, the left-leaning Texas Monthly responded with an article titled “What’s Behind the Strange Panic at Colony Ridge?”
“The Houston suburb offers cheap land to working families. But some in the Republican Party see the benefit of demonizing immigrants who have moved there,” the magazine wrote.
The DOJ and CFPB allege that Colony Ridge uses Spanish-language advertising in this way. Houston Land/YouTube But they allege that other crucial documents are in English and contain predatory clauses. Land Houston/ Youtube Developers advertise “ITIN Accepted,” meaning people without Social Security numbers can apply for financing. But the DOJ and CFPB allege they are being exploited with a bait and switch. New York Post
But, The Post has learned, the League of United Latin American Citizens (LULAC), the nation’s oldest and largest Latino civil rights organization, is also investigating Colony Ridge, and has added its voice to federal agencies accusing their owners from taking advantage of the hard-working Latin Americans.
Domingo García, president of LULAC, said Colony Ridge is a “clear example” of the financial injustices affecting Latinos in Texas.
About one in four Colony Ridge loans ends in foreclosure, leaving families financially ruined, 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 their hard-earned dollars,” he said.
John Harris, one of two brothers developing Colony Ridge, rejected the Justice Department and CFPB allegations and said in a statement that he looks forward to the “true story” of the development being told. LinkedIn William “Trey” Harris, the other Colony Ridge developer, also rejects the allegations made by the DOJ and CFPB. He and his brother told Texas Monthly that they believe most residents do not have legal status. Dolcefino/YouTube Consulting
“Worse still, their dreams of homeownership have been ripped away and they have been left with the nightmare of financial loss and the uncertainty of where they and their families will live.”
Robert Rehak, a former top Chicago advertising executive who moved to an area south of Colony Ridge after retiring and writes a blog, Reduce Flooding, where he has chronicled the damage caused by what he says is poor drainage in development since 2020, said LULAC’s participation showed that the issue was not a right-wing “freak out.”
“LULAC is pretty big in Texas and their involvement will open the door to a lot more things,” he said.
“It’s a sign that this has gone beyond right-wing media. “This isn’t just a bunch of crackpots looking for illegal immigrants.”
Rehak is one of several activists in the area fighting Colony Ridge, many of whom have been called bigots or racists against Latinos even though some of them are Latino.
María Acevedo, 51, Latin American, bought a lot in Colony Ridge in 2018, where she planned to build a house with her husband.
The deteriorated state of houses in Colony Ridge, seen in aerial images taken by local activists who say it has caused environmental damage. The Post has learned that the Environmental Protection Agency is investigating the development. Robert Rehak/ReduceFlooding.com
But she told The Post that she lost everything after making a small down payment on the property of $39,000, only to find a mysterious $7.6 million lien on it, and ultimately walking away from the transaction with nothing to show for it.
“Knowing that these government entities are finally paying attention and going after these people was just an invaluable feeling,” Acevedo told The Post this week.
“We have been the voices of many Latinos in Colony Ridge who did not have a voice. “It was outrageous how the developers acted like they were doing Hispanics a favor when in reality they were taking advantage of us and ruining lives.”
Federal regulators allege that Colony Ridge developers use flashy ads to attract potential Latino buyers, then exploit them by failing to file crucial documents in Spanish. When The Post visited Colony Ridge in October, we found evidence of dire conditions in some parts of the development, while local activists provided aerial photos showing the poor conditions there. Robert Rehak/ReduceFlooding.com
Colony Ridge CEO John Harris said in a statement that the developers were “blindsided” by the lawsuit.
“The lawsuit is baseless and is both outrageous and inflammatory,” he said.
“Our business thrives on customer referrals because homeowners are happy and able to experience the American dream of homeownership.
“We lend to those who do not have the opportunity to obtain a loan from anyone else and are proud of the relationships we have developed with customers. “We look forward to telling the true story of Colony Ridge.”
Categories: Trending
Source: vtt.edu.vn