The National Colonia Clearinghouse serves as a depository of information to assist federal, state and local entities, community-based organizations and practitioners in obtaining the most recent information on colonias. The term colonia is given to a subdivision with substandard housing, roads, water and sewage. There are 1,495 colonias in Texas with the majority in the Lower Rio Grande Valley. The COPC has estimated there are approximately 1,593 colonias across the Border Region, with a population of at least 500,000. Without drainage, streets become flooded, making it difficult or impossible to travel.
School busses are unable to pick up students and people are unable to commute to work.
Substandard housing is common in colonias because many prospective owners do not qualify for private mortgage financing so they build their own houses one piece at a time or as money becomes available. These contracts transfer equity to the buyer only after the final payment is made. Therefore, even if a house meets government standards, these contracts cannot be used to secure a home construction or home improvement loan. Wells and septic tanks are not solutions to the water and sewage problem. These systems work well when used by one household.