Summary
A Texas developer has agreed to a $68 million settlement to resolve a civil rights case that alleged the firm targeted Hispanic families with predatory land sales. The agreement allocates the bulk of the funds to infrastructure improvements and sets aside $20 million for compliance and local law enforcement, including funds to support delegated immigration enforcement authority.
Background and allegations
Federal authorities in 2023 accused the Texas developer, which had marketed property to consumers, of promoting loans that were unaffordable to Hispanic families for parcels described as flood-prone and lacking utilities or sewage connections. The complaint said that, after foreclosures, the company resold those plots.
The Justice Department and the Consumer Financial Protection Bureau brought the civil rights action, and the administration highlighted the case as the Justice Department’s first to claim predatory mortgage lending under the Fair Housing Act and the Equal Credit Opportunity Act. The developer denied the allegations at the time.
Settlement terms
Under the settlement documents, the developer will pay a total of $68 million. Of that amount, $48 million is designated for physical improvements - specifically roads, flood prevention measures, and sewage handling systems.
The remaining $20 million is to be used for compliance with local and federal agreements and to fund local law enforcement, "including, primarily, funding additional delegated immigration enforcement authority from the federal government," as described in the agreement.
Additional requirements and enforcement
As part of the resolution, the developer consented to a three-year moratorium on direct-to-consumer property development. The agreement also requires the company to retain an outside expert to oversee legal compliance, among other stipulated conditions.
Official statement and procedural developments
Harmeet Dhillon, head of the Justice Department’s civil rights division, issued a statement saying the deal "will promote public safety, and affordable and sustainable homeownership in America, key priorities of this administration."
The Consumer Financial Protection Bureau on the same day dismissed all of its claims in the case. Efforts to obtain immediate comment from representatives of the Texas Attorney General’s Office and the developer were not successful; those representatives did not immediately respond to requests for comment.
Legal and community implications
The settlement resolves the civil rights litigation with a mix of infrastructure investment, law enforcement funding, and corporate compliance measures. The allocation of funds for delegated immigration enforcement is explicitly noted in the agreement, alongside investments intended to address road conditions and sewage and flood-control deficiencies.