COLONY RIDGE, TX – In a $68 million settlement announced by the U.S. Department of Justice, Colony Ridge Land LLC and its affiliated entities agreed to resolve allegations that the developer engaged in predatory land sales and lending practices targeting Hispanic borrowers. The agreement, reached in coordination with Texas Attorney General Ken Paxton’s office, concludes litigation initiated in late 2023 and expanded through early 2024.

According to the DOJ’s Civil Rights Division, the lawsuit accused Colony Ridge of violating the Equal Credit Opportunity Act and the Fair Housing Act through marketing and lending tactics that allegedly steered vulnerable buyers into high risk seller financed loans without verifying their ability to repay. Investigators said the result was a pattern of defaults, foreclosures, and financial distress across the rapidly expanding Liberty County development.

Assistant Attorney General Harmeet K. Dhillon stated the government viewed the conduct as both unlawful and socially harmful, asserting that deceptive lending schemes undermine civil rights protections while destabilizing communities. Dhillon also noted enforcement efforts would extend to lenders and developers whose practices may contribute to illegal immigration or unsafe housing conditions.

The settlement resolves a December 2023 federal lawsuit filed jointly by the Justice Department and the Consumer Financial Protection Bureau, alongside a March 2024 lawsuit brought by the Texas Attorney General’s Office.

Under the terms of the agreement, Colony Ridge must allocate $48 million toward infrastructure upgrades, including $18 million dedicated to drainage improvements intended to mitigate flooding risks that residents and investigators say have caused costly property damage. An additional $30 million will fund broader infrastructure enhancements throughout the development.

The developer also agreed to adopt underwriting standards requiring verification of borrower income, assets, and debt levels before issuing loans, a shift designed to reduce default risk. The settlement further mandates foreclosure mitigation policies, borrower assistance programs, and a credit remediation plan addressing past reporting tied to defaulted loans.

Investigators also cited concerns involving marketing practices. As part of the settlement, Colony Ridge must ensure advertising accurately represents property conditions, utility access, and loan terms. Pre sale disclosures must now clearly indicate whether homes are move in ready and whether essential services are immediately available.

A legal settlement involving the State of Texas, the federal government, and Colony Ridge will also require prospective buyers to verify lawful presence in the United States. According to reporting from Yahoo News, purchasers must present a valid Texas-issued identification card or driver’s license, or appropriate immigration documentation such as a passport accompanied by a current visa, before completing certain transactions.

Another significant provision includes a $20 million commitment aimed at strengthening law enforcement presence within the development. The agreement requires Colony Ridge to coordinate with local, state, and federal authorities to enhance public safety efforts as the community continues to grow.

Additionally, the settlement imposes documentation requirements tied to federal land sales exemptions and halts new residential plats for direct to consumer sales for three years, effectively slowing the rapid expansion that drew national scrutiny.

Colony Ridge has not admitted wrongdoing as part of the settlement, a common feature in civil resolutions. The company has previously stated that it provides affordable homeownership opportunities to buyers who may struggle to access traditional financing, while emphasizing its cooperation with regulators.

The development has been the subject of intense political and media attention due to its size, unconventional financing model, infrastructure concerns, and questions surrounding population growth patterns in the region.

Sources: U.S. Department of Justice Civil Rights Division announcement, Justice.gov; Texas Office of the Attorney General filings; Consumer Financial Protection Bureau case records.

FATE, TX – Fate voters are heading into a May 2 election that could fundamentally rearrange the city’s governing body.

Two City Council seats are open, with no incumbents seeking reelection. At the same time, residents will weigh a recall question targeting sitting Council Member Codi Chinn. If the recall succeeds, the newly seated council, whatever its composition after the election, would appoint someone to fill the resulting vacancy.

Taken together, the ballot presents more than routine municipal housekeeping. It presents a potential structural reset.

Who Is On The Ballot

For Council Member, Place 2, voters will choose between Lorna Grove and Ashley Rains. The seat is currently held by Mark Harper, who opted not to run for another term.

For Council Member, Place 3, Melinda McCarthy faces Allen Robbins, a former Fate councilman. That seat is currently held by Scott Kelley, who also chose not to seek reelection.

In addition, the ballot includes a recall measure concerning Council Member Codi Chinn. Under Texas municipal law, recall elections allow voters to decide whether an elected official should remain in office before the end of a term. If a majority supports removal, the position becomes vacant.

What Happens If The Recall Succeeds

If voters approve the recall, the City Council would be responsible for appointing a replacement to serve out the remainder of the term, unless the city council calls a special election. In Fate’s case, the council has authority to fill a vacancy by appointment.

That means the composition of the council immediately after May 2 will matter significantly. The same body that voters help shape at the ballot box would select the individual who fills the recalled member’s seat.

In practical terms, voters are not only choosing two new council members. They may also be indirectly influencing who could become a third.

PipkinsReports.com is posting a collection of audio and video files released by the City of Fate in response to a formal Open Records Request submitted by a private resident of Fate.

Pipkins Reports was not the requesting party. The materials were obtained from the resident who filed the request under the Open Records Request. Since we have a server able to handle such large files, in the interest of transparency, we are making the files publicly available in a single location.

These files are posted exactly as we received them. We have made no edits, no cuts, no redactions, and no alterations of any kind. The content, format, filenames, and timestamps remain unchanged from the versions we received. Furthermore, these files represent the entirety of the files we were provided in association with the open records request. We are not withholding any files that were released by the city.

Under the Texas Public Information Act, government records are presumed to be public unless an applicable exception applies. The City of Fate released these materials in response to that statutory request.

Pipkins Reports has not independently verified whether any redactions were made by the City prior to release. We are not asserting any conclusions regarding the content of these recordings. The files are provided for public review in their entirety.

Readers are encouraged to review the materials directly and reach their own conclusions based on the full record.

Note: Some of the files are in Video Format, but contain only audio. This is how they were provided to us.

Mayor Greenberg

Hatley, Kovacs

Hatley, Kovacs

Greenberg, Chinn, Harper.

Hatley, Kovacs

Hatley, Kovacs, Corson

Hatley, Kovacs

Hatley, Kovacs, Corson

Hatley, Kovacs, Corson

Hatley, Kovacs