in development, and mistrust of government. Colonias in New Mexico In New Mexico, about 150 colonias have qualified for colonia-funding sources such as HUD, U.S. Department of Agriculture (USDA), etc. In New Mexico, there are two types of colonias: small towns and subdivisions. Although many of New Mexico's colonias consist of rural small towns, they were considered colonias because of the absence of resources. Conflicts with acceptable water, sewers, and safe and clean housing that the colonias faced brought on the requirement of Section 916 of the National Affordable Housing Act of 1992. In New Mexico, land was sold contract-for-deed; however, before 1990, New Mexicans were allowed to divide their property into four parcels without violating the law. Within a couple of years, landowners were then allowed to split their land into two parcels, but after some time, the subdivision law was amended to close this "loophole utilized by colonia developers". Characteristics Demographics Colonias can be found in each U.S. state on the Mexican border: Texas, New Mexico, Arizona, and California. Residents are mostly Hispanic and about 65% of the colonia population were born in the United States. Overall, colonias consist of low-income communities with families that cannot afford goods in a formal economy. In a random survey by the Texas Department of State Health Services, it was found that half of the families have incomes of less than $834 a month. About 70% of colonia residents have not graduated from high school and many lack English-language skills, which hampers their job mobility, suppresses wages, and the ability to seek assistance. The unemployment rate for families in colonias is 18%, compared to 11% in neighbouring cities. Residents of colonias pay, on average, 58% of their income on housing. In comparison, a two-bedroom apartment in Albuquerque, New Mexico costs $830, only 20% of the average income in the U.S. Colonia housing costs too much relative to the resident earnings and the living conditions are significantly worse. Housing Colonias may be lacking in all types of essential physical infrastructure and public services, such as clean water, sanitary sewage, and adequate roads. Most colonia housing does not meet construction standards and building codes. Houses are often built little by little, starting as shabby tents of wood and cardboard. Only 54% of colonia residents in Texas have sewer service and about 50% drink water from a non-tap source. Because they do not qualify for