Paxton Secures $68M Settlement Against Colony Ridge Developers

Detected February 10th, 2026

Summary

Texas Attorney General Ken Paxton, in conjunction with the DOJ, secured a $68 million settlement against Colony Ridge developers. The agreement halts new residential lot platting for 36 months, prohibits sales to individuals from certain countries, and mandates new underwriting and identification standards.

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What changed

Texas Attorney General Ken Paxton announced a $68 million settlement with Colony Ridge developers, a joint effort with the Department of Justice. The settlement resolves allegations of creating a de facto illegal immigrant community and includes a $20 million allocation for law enforcement, infrastructure improvements, and a 36-month freeze on new residential lot platting. Sales to individuals from designated countries like China and Iran are prohibited, and heightened underwriting and identification standards are imposed.

This settlement imposes significant financial penalties and operational restrictions on Colony Ridge developers. The immediate halt to new platting and the prohibition of sales to specific nationalities will directly impact their business model. Regulated entities involved in large-scale land development, particularly those bordering or interacting with immigration issues, should review the terms of this settlement to understand the potential for increased scrutiny and enforcement actions regarding land use, sales practices, and community impact. Failure to comply with such agreements can result in substantial financial penalties and operational limitations.

Source document (simplified)

Attorney General Ken Paxton, while working alongside President Trump’s Department of Justice (“DOJ”), has secured a landmark $68 million settlement against the developers of Colony Ridge. In addition to paying tens of millions of dollars, the agreement effectively halts the development of a de facto illegal immigrant community. The settlement is the result of a joint effort by the OAG and the DOJ to secure justice in their cases against Colony Ridge.

“Under my watch, Texas will never be a sanctuary for illegals. Colony Ridge endangered American citizens by allowing illegal aliens to run rampant on its streets, in its schools, and in its community. Now, it’s time for those responsible to pay a steep cost for their unlawful actions,” said Attorney General Paxton. “My office will continue to bring the full force of the law against anyone who threatens the safety of our state or creates a safe harbor for illegals.”

Under the terms of the joint settlement, the developers will have to pay a total of $68 million. Of the $68 million, at least $20 million will be allocated to law enforcement efforts—including funding for the construction of a law enforcement center in the area. Some of the funding for law enforcement can also be used to facilitate 287(g) agreements. 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.

In addition to the tens of millions in payments, the settlement immediately freezes any new platting of residential lots for direct-to-consumer sales for a 36-month period. In addition, sales to individuals from certain designated countries such as China and Iran are prohibited. The settlement also requires heightened underwriting standards and institutes new identification requirements for future buyers to ensure Colony Ridge never again is a haven for illegals.