# Presentation: 520479

## Southwest Border Region Initiatives

- COLONIAS

- Unincorporated & impoverished subdivisions that flourish along the Texas-Mexico border.
- 1,400 colonias exist from Cameron County on the gulf of Mexico to El Paso County in the west.
- 400,000 residents.

**Notes:**
Colonia residents of these subdivisions are in a daily struggle with living conditions that resemble a Third World country’s – open sewage, lack of sanitary water and drainage, dusty unpaved roads, no plumbing, and ramshackle dwellings.
Although numerous improvements in housing and infrastructure have been made since colonias were first established 50 years ago, bettering the lives of colonia residents is an ongoing – and probably never-ending – process involving people, governments & organizations working together.

- In early 1950, developers began creating subdivisions in unincorporated, isolated rural areas on land that had no agricultural value or that was located in a floodplain.
- Lots subdivided with little or no infrastructure and then sold to low-income people.

- _Contract for deed_ – the seller retains ownership until the debt is paid in full.
- Many colonia residents bought land on contract for deed because they lacked a credit history and could not qualify for traditional financing.

**Notes:**
To protect the interest of people who rely on such arrangements, the Texas’ Colonias Fair Land Sales Act of 1995 (now) requires developers to record & counties to keep track of contracts for deed.  In addition, developers are required to provide a statement of available services, such as water, wastewater & electricity, & an annual statement of the buyer’s account.
Contracts for Deed sales still continue in the colonias, but properties now have infrastructure.  The contracts generally carry about 14% interest rate.  The sales continue because buyers can get a half-acre tract in a colonia versus a smaller lot in a city, & the homeowner is not required to follow city building codes/restrictions.  The buyers can also build & get financing as their incomes allow.
Since 2001, Texas Department of Housing & Community Affairs, Office of Colonia Initiatives, has committed in excess of $4.4 million for contract-for-deed conversions.

- Infrastructure – Many of today’s colonia residents still use septic tanks or cesspools.
- Water is bought by the bucket and drum or use potentially contaminated wells.

- Even with water & sewer systems in place, many colonia residents do not have hookups.
- Their homes can’t pass inspections.
- Owners can’t afford repairs or improvements to meet codes.

- Infrastructure improvements are gradually coming to the colonias.
- In 1989, Texas passed the first of two bond authorizations totaling $250 million to provide water/waste-water services to colonias.

## Texas Water Development Board

- Has committed over $350 million in grants & loans for infrastructure projects affecting more than 180,000 colonia residents.

## State Legal Actions

- During the past 10 years, the State of Texas has taken steps to improve colonia living conditions through litigation & to halt proliferation of colonias with little or no infrastructure.

## Cameron County	

- Cameron Park Colonia – 1,000 homes – nearly all homes now have water & sewer hookups.
- Since 1997, Cameron County officials have paved more than 9.5 miles of the colonias 11 miles.
- Partnership with TWLD, TDHCA, & TAMU. (Park development/community center).

**Notes:**
The Colonia legislation passed in 1995 prohibits developers from selling lots in existing colonias without water & wastewater treatment services, although some cities and counties lack staffing to enforce the complex law.

- _C_olonia homes are primarily built by residents little by little, using available materials.
- Houses often begin as _tents, makeshift structures of wood, cardboard or other material._

- Cameron County

**Notes:**
As their limited finances allow, the owners add improvements; they rarely use professional builders.  

- Community Development Corporation of Brownsville (CDCB).
- CDCB is tearing down and rebuilding homes in five colonias around Brownsville.
- The CDCB requires the colonias to have full water and sewer service & paved roads.

- Cameron County

- Windwood Subdivision offers an alternative to colonia living - $11.5 million affordable-housing development outside the colonias –CDCB has built & sold 180 single family units.
- Windwood’s household income averages $19,325; its lowest income is $12,000.

- Cameron County

**Notes:**
Windwood Subdivision development funded by CDCB, a multibank CDC, Wells Fargo, chase Bank of Texas, Fannie Mae and the Federal Home Loan Bank of Dallas.
Through its partnership agreements, CDCB is developing another 33 acres for 150 single family homes.  This project will have a self-help equity component in which homeowners participate in the construction.  The non-profit organization will also buy the homes of 30 families in a nearby colonia and move them to new homes in the new subdivision.

- Proyecto Azteca – Self-help housing for $6,000 w/limited interior finish-out. There are approximately 4,000 colonia families on waiting list.
- 30% down, 5 year, 0% - monthly payments of $75 to $100 – interiors are finished as their finances allow.

- Hidalgo County

**Notes:**
Regional coalitions are being established.  
RHED - $600,000 grant to CDCB – established Rural and Colonia Loan Program.  Partnership included Chase Bank of Texas, Wells Fargo, IBC & Texas State Bank – banks participation – $1.5 million.  The grant will serve as a loan-loss reserve for the banks, allowing them to make loans  to customers unable to qualify for traditional financing.  The loan product will be a 20 year, 3.5% fixed loan with monthly payments averaging $256, including taxes and insurance.  Homes will sell for approximately $30,000.

## Other Partners

- USDA
- Fannie Mae
- Secretary of State
- TWDB
- TDSHS
- UT PAN-AM
- TAMU, and
- State CDBG Set-Aside

**Notes:**
Fannie Mae is managing a five-year, $1.5 billion investment plan for border communities.  In addition, USDA has a Water/Waste Disposal Loan & Grant program that provides 1% loans for home improvements.
In 1995, the Texas Legislature allocated 2.5% of the State of Texas’ annual share of CDBG to operate five self-help centers in five counties.  The centers help colonia residents with repairs, maintenance, health care, education, employment training & counseling.  The centers lend homeowners tools & offer technical assistance for home repairs & maintenance.

## Challenges/Opportunities

- Low incomes
- High unemployment
- Dilapidated housing
- Lack of infrastructure
- Significant resources
- New laws
- Partnerships

**Notes:**
Outside the colonias, new affordable-housing developments are being established as an alternative for families who would otherwise live in colonias.
However, even with significant resources, colonia housing continues to be some of the poorest in the country.  For a majority of families, the question of choice is moot; housing is a necessity, and the only option they see is the colonia.  With no end in sight for population growth and housing demand along the border, continued efforts are necessary to wrestle with the colonias’ problems. 

## Las Milpas – Pharr, Texas 

## Slide 18

**Notes:**
Las Milpas – Home under construction – Pharr, Texas (Hidalgo County)

## Slide 19

**Notes:**
Las Milpas – Pharr, Texas (Hidalgo County)

## Slide 20

**Notes:**
Las Milpas – Pharr, Texas (Hidalgo County)

## Slide 21

**Notes:**
Las Milpas – Pharr (Hidalgo County) – two houses on one lot!

## Slide 22

**Notes:**
Las Milpas – Pharr, Texas (Hidalgo County)

## Slide 23

**Notes:**
Las Milpas, Pharr, Texas (Hidalgo County)

## Slide 24

**Notes:**
Newly built home – Las Milpas – Pharr, Texas (Hidalgo County)

## Slide 25

**Notes:**
Las Milpas

## Slide 26

**Notes:**
Las Milpas

## Slide 27

**Notes:**
Las Milpas – unfinished home – Pharr (Hidalgo County)

## Slide 28

**Notes:**
Las Milpas

## Slide 29

**Notes:**
Las Milpas

## Slide 30

**Notes:**
Las Milpas

## Slide 31

**Notes:**
Las Milpas

## Slide 32

**Notes:**
Boat home – Las Milpas

## Slide 33

**Notes:**
Proyecto Azteca newly constructed home – Las Milpas

## Slide 34

**Notes:**
Building materials – Las Milpas

## Slide 35

**Notes:**
Las Milpas

## Presidio, Texas (Big Bend)

**Notes:**
Presidio, Texas – County Courthouse – West Texas – Big Bend area.

## Slide 37

**Notes:**
Adode type house – Presidio, Texas

## Slide 38

**Notes:**
View from inside adobe home - Presidio, Texas

## Starr County, Texas

**Notes:**
Two story home under construction – Starr County

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## Slide 41

## Slide 42

**Notes:**
CDBG drainage