Colony Ridge Settles Lawsuit with U.S., State of Texas

2/10/2026 – On 2/9/2026, Colony Ridge and its owners settled a lawsuit with the U.S. Consumer Financial Protection Bureau and State of Texas. The 30-page settlement includes:

  • Comprehensive reforms of the developer’s sales, marketing, and financing practices
  • A three-year moratorium on expansion
  • Public safety improvements
  • Establishment and enforcement of deed restrictions
  • Compliance with consumer protection laws
  • $20 million to beef up law enforcement
  • A $48 million plan to address deficiences in existing infrastructure.

The latter includes $18 million to address flooding and drainage issues. It also includes $30 million to address other infrastructure needs such as potable water, sewage, roads, and waste management.

The sprawling Colony Ridge in Liberty County grew 50% larger than Manhattan in just 15 years. It was accused of being a foreclosure mill with predatory, deceptive lending practices.

At least nine TCEQ investigations reprimanded Colony Ridge construction practices. The TCEQ even accused Colony Ridge of endangering human life.

Merry Christmas from Colony Ridge
Colony Ridge Parade of Homes

In 2023, the entire Texas Republican Congressional Delegation urged Governor Greg Abbott and Attorney General Ken Paxton to investigate Colony Ridge.

I wrote more than 75 posts about the development beginning in 2020. For more background see: History of Heartbreak: A Colony Ridge Chronicle. Below, I’ll summarize the major elements of the settlement.

While this settlement should vastly improve future development, it contains nothing to compensate past victims

Moratorium on Development

In exchange for resolving all the claims against it in 2023 lawsuits by the Department of Justice and State of Texas, Colony Ridge, its owners, employees and all affiliated entities have agreed to a moratorium on development. That means:

  • For two years, they will not seek new plats for direct-to-consumer sales.
  • After that, they may seek approval of new plats if they require new deed-restricted homes to be built prior to sale.
  • Colony Ridge will not seek platting of new subdivisions for three years unless the lots have deed restrictions. Further, newly platted subdivisions will require:
    • Compliance with all county permitting and construction requirements
    • New dwellings to be approved by an architectural control committee.

ILSA and Texas Property Code Compliance

The settlement requires Colony Ridge to comply with the Interstate Land Sales Act and the Texas Property Code. That means requiring purchasers to present:

  • An unexpired Texas driver’s license
  • A Texas-issued ID card, or
  • An unexpired passport and valid visa.

It also requires Colony Ridge to work with law enforcement to confirm buyers are not cartel members or on a terrorism watch list.

Finally, Colony Ridge must confirm that purchasers do not have a prohibited relationship with any ‘designated country’ including China, Russia, Iran, and North Korea. That’s to comply with the Texas Property Code.

Prohibition Against Discrimination

Colony Ridge has agreed to comply with the Equal Credit Opportunity Act for all sales or rentals.

Hire A Compliance Specialist

At its own expense, Colony Ridge must hire a compliance specialist to ensure the owners, their corporate entities and their employees comply with all terms of the settlement.

Increasing Housing Affordability and Availability

Colony Ridge has agreed to reform its underwriting standards by:

  • Making sure buyers can repay their loans
  • Notifying buyers of ways to avoid default and rescind their sales agreements
  • Developing a default-avoidance plan including credit assessments, relief and remission options.
  • Addressing harm to borrowers credit, including removing negative credit reports
  • Developing a foreclosure policy that meaningfully reduces the number and frequency of foreclosures

Addressing Misrepresentations to Consumers

Colony Ridge has also agreed to truthfully and accurately describe the properties it has for sale and applicable loan terms. It will not advertise that all properties are “move in ready” or currently have “all city services.” The company will add appropriate limiting language or disclaimers to its advertisements.

Colony Ridge has also agreed to disclose loan terms, utility connections, flooding, wetlands, and readiness for use.

The flooding provision requires all plats to receive pre-development drainage and flood-control approval by the appropriate Federal, State, and local authorities.

Colony Ridge must disclose whether property is in the 100-year flood plain. The company must also disclose whether the buyer is responsible for leveling, grading, or otherwise filling the lot to provide proper drainage to culverts.

Re: cost, Colony Ridge must disclose the true total cost of the property to buyers including interest, closing costs, taxes, POA fees, etc. The company must also mail monthly statements.

Infrastructure Improvements

Within three months, Colony Ridge must develop and begin implementing a $48 million infrastructure improvement plan. Its goals: to reduce and prevent flooding, improve roads, provide for proper management of sewage and other waste, and invest in other projects designed to improve the habitability and public safety.

The company must develop a road drainage system capable of handling 10-year rains based on new Atlas 14 data. It must also build a 100-year-storm flood-control system.

The plan must prioritize fixing existing problems before developing new infrastructure.

Settlement Agreement, Page 12

Increased Law Enforcement Presence

The defendants must spend at least $20 million to increase a law enforcement presence in Colony Ridge. That includes building a DPS and County Constable sub-station, funding full-time law enforcement officers, supplying them with vehicles, and ensuring compliance with immigration laws.

Property Owners Association

The Property Owners Association (POA) must report to owners how their dues are expended. Previously, the dues were used to finance new development, not provide services to the people paying the dues.

Training and Complaint Procedures

Colony Ridge must now train its staff on how to comply with federal and state regulations. The company must explain how Colony Ridge previously fell short and also develop a “Nondiscrimination Policy and Complaint Procedure.”

Law Enforcement Support

Colony Ridge must develop a discount program that encourages law-enforcement officers to take up residence there.

Penalties for Non-Compliance

Noncompliance with any of these provisions will land the owners back in court.

Not All Residents Happy

An activist named Maria Acevedo who bought property in Colony Ridge and was victimized by the company’s business practices was unhappy with the settlement. Her concern: It will protect people in the future, but doesn’t provide any compensation to people victimized in the past.

Said Acevedo, “The money used to pay penalties came from the very families who were scammed — it was our money, not Colony Ridge’s. We were victims.”

Another lady, Jennifer Stewart, a Huffman resident who has many friends living in and around Colony Ridge said, “I’m glad a settlement was reached, but the people who were truly harmed have not been made whole. That’s unconscionable.”

Posted by Bob Rehak on 2/10/25

3087 Days since Hurricane Harvey

The thoughts expressed in this post represent opinions on matters of public concern and safety. They are protected by the First Amendment of the US Constitution and the Anti-SLAPP Statute of the Great State of Texas.

Easy Way to Make Your Community More Resilient to Flooding

2/9/2026 – The Harris County Infrastructure Resilience Team wants public input on ideas to make the area more resilient to flooding. As someone who believes that all of us are smarter than one of us, I’m passing the request on to ReduceFlooding.com readers.

  • Do you see a situation that could lead to flooding? On your street? In your neighborhood? In your city or county?
  • What would reduce the potential for flooding in your opinion?
  • What would help us recover from flooding faster?

Please email your thoughts to the contact page on this website and I will forward them to the people who can do something about them.

As thought starters, here are several ideas I see that could make living here safer.

Create a River-Basin-Wide Flood Control District

Much flooding originates in cities and counties that let development happen in floodplains. Sometimes they let development happen with insufficient mitigation. This problem is exacerbated by the dozens of municipalities, counties, MUDs, PUDs, and drainage districts each of which have their own regulations and few of which of effective enforcement.

Entire San Jacinto River Basin by SJRA. Note: the area draining past Kingwood is larger than all of Harris County.

A flood control district that covers the entire river basin could solve flooding due to this fragmentation and a patchwork quilt of regulations across the region. There is no central coordinating body.

In the last legislation, Rep. Dennis Paul introduced HB204. It would have let other counties join Harris County to create an expanded flood control district. However, the bill never made it out of committee.

Senator Bettancourt and Representative Paul introduced similar bills in the previous legislative session. Perhaps next year, they will succeed with your support.

Control Erosion Better

Erosion can reduce the carrying capacity of our rivers and streams. It displaces water that may end up in your living room during a flood event because the stream can no longer hold it. Fighting erosion is two-front war. We need to reduce it at its source. And we need to remove sediment that makes its way downstream, blocking our rivers and channels.

Colony Ridge ditch erosion
Uncontrolled erosion in Colony Ridge, Liberty County, in East Fork Watershed.

This means addressing the main sources of sediment, such as sand mining and insufficiently mitigated upstream development. It also means removing any sediment that makes its way downstream by scrupulous adherence to maintenance intervals.

We’ve seen numerous examples of blocked drainage ditches and even rivers such as the mouth bars on the East and West Forks, the Kingwood Diversion Ditch, Rogers Gully.

Reduce Subsidence Across a Wider Area

Subsidence, caused by excessive groundwater withdrawals, can alter the gradient of rivers and create bowls in the landscape. The Harris Galveston Subsidence District has put regulations in place to reduce it. And they’ve worked where they have been in effect the longest.

But newly regulated areas are still subsiding at alarming rates. And that subsidence can erase the safety margin of your home above the floodplain (usually one or two feet above the 100-year floodplain, depending on the age of your home and where you live).

Houston area subsidence map from satellite data.
From Subsidence District 2024 Annual Report

The way to solve this problem is to get rapidly subsiding areas on surface water. But that’s more expensive. So, we also need educational campaigns that explain the benefits of surface water. People may not argue about paying a few dollars more each month if they know it could save them hundreds of thousands in a high water event.

Locate Assisted-Living Centers Outside of Floodplains

Twelve people, aged 75-95, died at Kingwood Village Estates as a result of Harvey. That’s one third of all the people who died in Harris County. Evacuating them by life boats put their lives and the lives of first responders at risk. They weren’t warned in time to make a safe, orderly evacuation by cars or buses.

Residents trying to escape as Harvey's floodwaters rose
Residents trying to escape Kingwood Village Estates as Harvey’s floodwaters rose

Warning Sirens

Install warning sirens in areas that flood frequently to give people time to evacuate. Floods frequently knock out communications or happen in the middle of the night. The chain of communication can be disrupted. But wailing sirens can wake up even the soundest sleepers in the middle of the night.

With sirens, many lives could have been saved in Kingwood and along the Guadalupe last July.

Flood Education in High Schools

We have drivers’ ed. Why not flood ed? Greater awareness of the causes and dangers of flooding could eventually shift housing demand to safer locations.

Perhaps the State Board of Education could create course materials that they distribute to school districts. They might educate young people how to research flood risk before buying a home. Or where to find information about projected flood crests in an emergency.

Better to learn before you buy a home than after!

Create County/City Parks in Flood-Prone Areas

It’s hard to tell people that they can’t build on their land. So why not buy dangerous flood-prone land and convert it into parks or recreational space?

The Houston Parks Board has been doing this for decades. Texas Parks and Wildlife did it with Lake Houston Wilderness Park (which they gave to the City.)

If people don’t live where it floods, they can’t flood. No buyouts. And no demand for expensive flood-mitigation projects. Prevention is always much cheaper than correction in the long run.

What Are Your Ideas?

Please send me your thoughts on how to make your community more resilient to flooding. Just write a paragraph or two. It doesn’t have to be elaborate. Then email your thoughts through the contact page of this website.

I’ll make sure the Harris County Infrastructure Resilience Team sees them.

The deadline for submissions is February 12, 2026. Thanks in advance for your help!

Posted by Bob Rehak on 2/9/26

3086 Days since Hurricane Harvey

Northpark Drive Expansion Project News: Stormwater Detention, UPRR Crossing and More

2/8/26 – The Northpark Drive Expansion Project has several new developments this month to report.

  • Lake Houston Redevelopment Authority will consider a motion this Thursday to begin engineering work on a linear stormwater detention basin.
  • Contractors will soon begin to clear out the ditch behind the businesses on the north side of Northpark.
  • Paving near the intersection of Northpark and US59 has been completed. Traffic should have returned to normal by Monday February 9, 2026, morning rush hour.
  • All parties met with UnionPacific Railroad (UPRR) to work out details of a plan to create surface roads across their tracks in preparation for bridge construction.
  • Drainage connections across Northpark are also being scheduled in preparation for bridge construction.

For more details on each, see below.

Stormwater Detention Basin

Last year, Lake Houston Redevelopment Authority/TIRZ10 announced plans to build additional detention basin capability along the Kingwood Diversion Ditch. It would relieve some of the pressure on both the Kingwood Diversion Ditch itself as well as Bens Branch.

The Diversion Ditch splits off Bens Branch just south of the new St. Martha Catholic Church on Woodridge Parkway. The portion of the Northpark Drive Project east of the Diversion Ditch (not yet started) will require the extra stormwater detention capacity. But accelerating the project will provide additional flood protection for Kingwood residents now.

This map from the 2/12/26 Board Packet shows where the project will go.

Area of investigation for detention along Diversion Ditch

It appears that engineers will explore linear detention down to the first bend in the Diversion Ditch. It also appears they will consider expanding the ditch to the east.

The big wooded area marked “Detention Basin” north of Northpark will not be clearcut, according to TIRZ Project Manager Ralph De Leon. He says much of the area is already below the level of the Diversion Ditch. Engineers are looking at the concept of vertical detention. He said the giant trees can suck water up into their trunks and release it gradually. Plus, the friction they provide against stormwater will slow it down. It’s a green solution.

Looking south at Diversion Ditch and area for planned detention. St. Martha behind camera position. Northpark crosses l to r through middle of frame.

To learn more about the proposal, see these pages extracted from the board packet. The meeting will take place at 8AM on Thursday morning at the Kingwood Community Center for those who have public comments.

Ditch-One Clean Out

De Leon also says that contractors will soon begin clearing out the first 900 feet of Ditch One. That’s the ditch that runs behind Public Storage and Dunkin’ Donuts. Ditch One supplements the drainage capacity running down the middle of Northpark from the entry ponds at 59.

Northpark Drive drainage improvements
Route of Ditch One from Entry Ponds to Diversion Ditch (center) and Bens Branch (r).
Initial area of focus.
ditch one
Looking W toward Public Storage. Ditch severely needs cleaning out to restore capacity.

“The ditch cross section will be regraded. And hydro mulching will be put down as needed to prevent erosion,” De Leon says. “When complete, this will look like a typical grass-lined ditch.”

Intersection of Northpark and US59

Freezing weather caused the delay of new concrete for small area at Northpark and US59. However, contractors completed it last weekend. Traffic was reportedly restored by Sunday night at 10PM. The new paving will let two lanes of traffic turn right simultaneously from northbound 59. That should eliminate some long delays for inbound commuters.

Looking W at Northpark from over 59. Photo taken before new paving. Repaving the area in the right foreground will let two lanes of traffic turn right from northbound 59 (bottom right).

UPRR Meeting on Signals, Feeder-Road Crossings

The UnionPacific signal crews finally met with De Leon, contractors, the City, Montgomery County, TXDoT, project engineers and consultants last week on Tuesday.

“The goal was to introduce the separate crews to each other so we can better coordinate our collective efforts.” 

Ralph De Leon, Project Manager

Contractors should start dirt work on all four quadrants of both feeder roads – east and west of the rail tracks – this week. For safety reasons, multiple crews will have to be sequenced instead of having them all work simultaneously in the small area.

The UPRR Signal Crew will reach Northpark this week. They will first relocate the existing power supply and traffic control signal box. 

Harper Brothers Construction will then build both feeder roads “over the tracks” with the exception of 4 feet next to the tracks.

Then a separate UPRR crew will use that space to make final connections to the rails.

Altogether, it should take UPRR about 2 weeks to remove existing signals, then install temporary and permanent signals. 

Once all that is done, Third Coast, a TIRZ contractor, will install temporary traffic signals at 494. That should take about two weeks. 

“To do all this safely takes time,” says De Leon.  He expects traffic to move permanently to the new feeder roads by late May or early June 2026.

At that point, they can begin building the bridge in earnest

Cross-Northpark Drainage Connections

De Leon also says work will begin soon on two cross-Northpark drainage connections near Loop 494. One will connect the area by the dry cleaner on the SW corner with the Shell station on the NW corner. Another connection will be on the east side of 494 in the general area of the planned bridge.

Rather than close Northpark traffic again, a decision was made to defer the installation until the center/existing roadway crossing at the rail tracks was permanently abandoned, i.e., until after the new surface roads are built.

For More Information

For more specifics, consult this three-week look-ahead schedule posted on 2/5/26 or visit the Lake Houston Redevelopment Authority website.

When complete, Kingwood will have it’s first all-weather evacuation route.

Posted by Bob Rehak on 2/8/2026

3085 Days since Hurricane Harvey