================================================================================

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)

|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

                For the quarterly period ended September 30, 1999

                                       OR

|_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

               For the transition period from        to
                                              ------    ------

                         Commission File Number 0-13800

                       INTERNATIONAL AMERICAN HOMES, INC.
             (Exact name of registrant as specified in its charter)

         Delaware                                       22-2472608
(State or other jurisdiction             (I.R.S. Employer Identification Number)
of incorporation or organization)

               9950 Princess Palm Ave., Suite 112, Tampa, FL 33619
               (Address of principal executive offices) (Zip Code)

       Registrant's telephone number, including area code: (813) 664-1100

                                 Not Applicable
      (Former name, former address and former fiscal year, if changed since
                                  last report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes [X] No

As of October 31, 1999, the number of shares outstanding of the registrant's
common stock, par value $.01, was 870,880.

================================================================================
                            Total number of pages: 18
<PAGE>

                       INTERNATIONAL AMERICAN HOMES, INC.
                                AND SUBSIDIARIES

                                      Index
                                      -----

                                                                            Page
                                                                            ----

Part I.  Financial Information:

   Item 1.  Financial Statements

            Consolidated Balance Sheets as of September 30, 1999
            (Unaudited) and March 31, 1999 (Audited) ........................  3

            Consolidated Statements of Income and Retained Earnings
            (Unaudited) for the three months ended September 30,
            1999 and 1998 ...................................................  5

            Consolidated Statements of Income and Retained Earnings
            (Unaudited) for the six months ended September 30,1999
            and 1998 ........................................................  6

            Consolidated Statements of Cash Flows (Unaudited) for the
            six months ended September 30, 1999 and 1998 ....................  7

            Notes to Consolidated Financial Statements (Unaudited)...........  8

   Item 2.  Management's Discussion and Analysis of Financial Condition and
            Results of Operations ........................................... 11

   Item 3.  Quantitative and Qualitative Disclosures About Market Risk....... 17


Part II.  Other Information:

   Item 2.  Changes in Securities and Use of Proceeds........................ 17

   Item 6.  Exhibits and Reports on Form 8-K................................. 17

Signatures .................................................................. 18


                                     PAGE 2
<PAGE>

Part I. Financial Information

                                     ITEM 1
                                     ------

                              FINANCIAL STATEMENTS

                       INTERNATIONAL AMERICAN HOMES, INC.
                                AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                             (Dollars in thousands)

                                     ASSETS

                                                (Unaudited)          (Audited)
                                             September 30, 1999   March 31, 1999
                                             ------------------   --------------
CASH AND CASH EQUIVALENTS - including $40
    and $40 restricted, respectively              $ 3,091          $ 1,461
RECEIVABLES                                         1,229            1,626
REAL ESTATE INVENTORY                              16,277           18,247
COLLATERAL FOR BONDS PAYABLE                        2,801            3,199
PROPERTY AND EQUIPMENT - less accumulated
    depreciation of $576 and $513,
    respectively                                       28               49
OTHER ASSETS                                           72              186
                                                  -------          -------
         TOTAL ASSETS                             $23,498          $24,768
                                                  =======          =======

        The accompanying notes are an integral part of these consolidated
                                 balance sheets.


                                     PAGE 3
<PAGE>

                       INTERNATIONAL AMERICAN HOMES, INC.
                                AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                             (Dollars in thousands)

                      LIABILITIES AND STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>
                                                       (Unaudited)          (Audited)
                                                   September 30, 1999    March 31, 1999
                                                   ------------------    --------------
<S>                                                      <C>                  <C>
LIABILITIES
MORTGAGE NOTES AND LOANS PAYABLE                         $  7,502             $  8,571
BONDS PAYABLE                                               2,689                3,068
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES                    3,774                4,403
CUSTOMER DEPOSITS                                             228                  180
                                                         --------             --------
    Total Liabilities                                      14,193               16,222
                                                         --------             --------
STOCKHOLDERS' EQUITY
PREFERRED STOCK - $.01 par value; 4,000,000
    shares authorized; none issued or
    outstanding                                                --                   --
COMMON STOCK - $.01 par value; 10,000,000 shares
    authorized; 1,002,618 and 985,955 shares
    issued, respectively; 870,880 and 857,385
    shares outstanding, respectively                           10                   10
ADDITIONAL PAID-IN CAPITAL                                  2,332                2,267
RETAINED EARNINGS                                           6,964                6,270
TREASURY STOCK - 131,738 and 128,570 shares,
    respectively                                               (1)                  (1)
                                                         --------             --------
    Total Stockholders' Equity                              9,305                8,546
                                                         --------             --------
   TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY            $ 23,498             $ 24,768
                                                         ========             ========
</TABLE>

        The accompanying notes are an integral part of these consolidated
                                 balance sheets.


                                     PAGE 4
<PAGE>

                       INTERNATIONAL AMERICAN HOMES, INC.
                                AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF INCOME AND RETAINED
            EARNINGS (Dollars in thousands, except per share amounts)
                                   (Unaudited)

                                       Three Months Ended September 30,
                                             -------------------
                                               1999       1998
                                             --------   --------

REVENUES
    Home sales                               $ 14,910   $ 11,486
    Interest and other income                      94         83
                                             --------   --------
                                               15,004     11,569
                                             --------   --------
COSTS AND EXPENSES
    Cost of home sales                         12,396      9,685
    Selling, general and administrative         1,895      1,456
    Interest                                       90         85
    Depreciation                                   33         24
                                             --------   --------
                                               14,414     11,250
                                             --------   --------
INCOME  BEFORE INCOME TAXES                       590        319
PROVISION  FOR INCOME TAXES                       212        131
                                             --------   --------
NET INCOME                                        378        188
RETAINED EARNINGS, BEGINNING OF PERIOD          6,586      5,731
                                             ========   ========
RETAINED EARNINGS, END OF PERIOD             $  6,964   $  5,919
                                             ========   ========

BASIC NET INCOME PER SHARE                   $    .44   $    .20
                                             ========   ========
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING (as adjusted for the reverse
stock split effective on December 1, 1998)    864,215    926,965
                                             ========   ========
DILUTED NET INCOME PER SHARE                 $    .44   $    .20
                                             ========   ========
WEIGHTED AVERAGE NUMBER OF COMMON AND
COMMON EQUIVALENT SHARES (as adjusted
for the reverse stock split effective
on December 1, 1998)                          867,420    926,965
                                             ========   ========

              The accompanying notes are an integral part of these
                            consolidated statements.


                                     PAGE 5
<PAGE>

                       INTERNATIONAL AMERICAN HOMES, INC.
                                AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF INCOME AND RETAINED
            EARNINGS (Dollars in thousands, except per share amounts)
                                   (Unaudited)

                                      Six Months Ended September 30,
                                          ---------------------
                                             1999        1998
                                          ---------   ---------
REVENUES
    Home sales                            $  28,940   $  26,037
    Interest and other income                   173         158
                                          ---------   ---------
                                             29,113      26,195
                                          ---------   ---------
COSTS AND EXPENSES
    Cost of home sales                       24,188      21,961
    Selling, general and administrative       3,574       3,045
    Interest                                    160         168
    Depreciation                                 63          48
    Restructuring provision                      50          --
    Reversal of creditor liability               --      (1,322)
                                          ---------   ---------
                                             28,035      23,900
                                          ---------   ---------
INCOME  BEFORE INCOME TAXES                   1,078       2,295
PROVISION FOR INCOME TAXES                      384         401
                                          ---------   ---------
NET INCOME                                      694       1,894
RETAINED EARNINGS, BEGINNING OF PERIOD        6,270       4,025
                                          =========   =========
RETAINED EARNINGS, END OF PERIOD              6,964   $   5,919
                                          =========   =========
BASIC NET INCOME PER SHARE                $     .81   $    2.04
                                          =========   =========
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING (as adjusted for the
reverse stock split effective on
December 1, 1998)                           861,008     926,965
                                          =========   =========
DILUTED NET INCOME PER SHARE              $     .80   $    2.04
                                          =========   =========
WEIGHTED AVERAGE NUMBER OF COMMON AND
COMMON EQUIVALENT SHARES (as adjusted
for the reverse stock split effective
on December 1, 1998)                        866,764     926,965
                                          =========   =========

              The accompanying notes are an integral part of these
                            consolidated statements.


                                     PAGE 6
<PAGE>

               INTERNATIONAL AMERICAN HOMES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (Dollars in thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                     Six Months Ended September 30,
                                                         ------------------
                                                           1999       1998
                                                         -------    -------
<S>                                                      <C>        <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                               $   694    $ 1,894
Adjustments to reconcile net income to net
cash provided by operating activities:
  Reversal of creditor liability                              --     (1,322)
  Depreciation                                                63         48
Changes in operating assets and liabilities
  Decrease (Increase) in receivables                         397       (908)
  Decrease in real estate inventory                        1,970      4,321
  Decrease in collateral for bonds payable                   398        411
  Decrease in accounts payable and accrued liabilities      (629)      (912)
  Increase (Decrease) in customer deposits                    48        (10)
  Decrease in other assets                                   114        175
                                                         -------    -------
Net cash provided by operating activities                  3,055      3,697
                                                         -------    -------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Decrease in restricted cash                                 --        250
  Property and equipment, net                                (42)         4
                                                         -------    -------
Net cash (used in) provided by investing activities          (42)       254
                                                         -------    -------
CASH FLOWS USED IN FINANCING ACTIVITIES:
  Proceeds from mortgage notes and loans payable              --      3,433
  Payments of mortgage notes and loans payable            (1,069)    (6,692)
  Repayments of bonds payable - finance subsidiaries        (379)      (395)
  Proceeds from stock options exercised                       66         --
  Purchase of  treasury stock                                (16)       (15)
  Return of unclaimed bankruptcy distributions                15         --
                                                         -------    -------
Net cash used in financing activities                     (1,383)    (3,669)
                                                         -------    -------
NET INCREASE IN CASH AND CASH EQUIVALENTS                  1,630        282
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD           1,421      1,171
                                                         =======    =======
CASH AND CASH EQUIVALENTS AT END OF PERIOD               $ 3,051    $ 1,453
                                                         =======    =======
SUPPLEMENTAL DISCLOSURES OF  CASH FLOW INFORMATION:
  Cash paid during the period for:
     Interest                                            $   501    $   644
                                                         =======    =======
     Income taxes                                        $    85    $    65
                                                         =======    =======
</TABLE>

              The accompanying notes are an integral part of these
                            consolidated statements.


                                     PAGE 7
<PAGE>

                       INTERNATIONAL AMERICAN HOMES, INC.
                                AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION

International American Homes, Inc. (the "Company") was incorporated under the
laws of the State of Delaware on April 27, 1983. The Company, through its
subsidiary, designs, builds, and sells single-family homes and villas and
develops finished building lots, primarily in middle income communities in
suburban residential areas in Greater Tampa, Florida.

During the fiscal year ended March 31, 1998, and in prior years, the Company
also conducted home building activities in Metropolitan Washington, D.C.. Such
activities have been terminated.

The interim consolidated financial statements have been prepared without audit
and pursuant to the rules and regulations of the Securities and Exchange
Commission. In the opinion of management, all adjustments for interim periods
presented have been made (which include only normal recurring accruals and
deferrals) for a fair presentation of consolidated financial position, results
of operations, and cash flows. The consolidated financial statements and
condensed notes should be read in conjunction with the Consolidated Financial
Statements and Notes thereto included in the Company's latest Annual Report on
Form 10-K. Results for interim periods are not necessarily indicative of the
results which might be expected for a full year.

NOTE 2 - CASH AND CASH EQUIVALENTS

For purposes of the statements of cash flows, the Company generally considers
all highly liquid instruments purchased with an original maturity of three
months or less to be cash equivalents.

NOTE 3 - PLAN OF REORGANIZATION

On April 16, 1990, the Company and certain of its wholly-owned subsidiaries
filed voluntary petitions for relief under Chapter 11, Title 11 of the United
States Bankruptcy Code in the United States Bankruptcy Court for the District of
New Jersey (the "Bankruptcy Court"). On August 12, 1992, the Bankruptcy Court
entered an order confirming the Company's Plan of Reorganization (the "Plan" or
"Plan of Reorganization"). The plan expired on August 12, 1998 with the
exception of a continuing dividend restriction. The dividend restriction
requires that before the Company can pay any dividends to stockholders it must
first pay to certain holders of creditor's claims $1,250,000.

During the year ended March 31, 1993 the Company provided an estimated liability
for potential distributions of cash flow to creditors of $1,322,000. The Company
has calculated the cash flow (as defined in the plan) for the cumulative six
year period ended June 30, 1998 and has determined that there was no cash flow
(as defined in the plan) for that period. Accordingly, no distribution to
creditors was required. At June 30, 1998, the Company reversed the estimated
liability and recognized income of $1,322,000.


                                     PAGE 8
<PAGE>

NOTE 4 - REAL ESTATE INVENTORY

Real estate inventory consists of the
 following (in thousands):
                                      September 30, 1999     March 31, 1999
                                      ------------------     --------------

Accumulated costs of construction
 completed and in progress                 $ 6,884               $ 8,468
Land and land development costs              9,263                 9,610
Land options and deposits                      130                   169
                                           -------               -------
                                           $16,277               $18,247
                                           =======               =======

NOTE 5 - CONDENSED FINANCIAL STATEMENTS OF CONSOLIDATED FINANCE SUBSIDIARIES

The Company's wholly-owned finance subsidiaries were established to sell
collateralized mortgage obligations through participation in various
multi-builder bond programs. In these sales, which last occurred in 1987, the
Company originated and pooled mortgage loans which were then pledged as
collateral for bonds payable. The interest rates on the mortgage loans that
comprise the collateral for bonds payable roughly equate with the interest rates
on the related bonds payable.

Condensed financial information is as follows (in thousands):

                            Condensed Balance Sheets
                                   (Unaudited)

                                     September 30, 1999   March 31, 1999
                                     ------------------   --------------
Assets:
  Collateral for bonds payable            $2,801              $3,199
  Other Assets                                 9                   3
                                          ------              ------
Total Assets                              $2,810              $3,202
                                          ======              ======
Liabilities and Equity:
  Bonds payable                           $2,689              $3,068
  Equity and intercompany advances           121                 134
                                          ------              ------
Total Liabilities and Equity              $2,810              $3,202
                                          ======              ======

                        Condensed Statement of Operations
                                   (Unaudited)

                                       Three Months Ended    Six Months Ended
                                         September 30,         September 30,
                                         -------------         -------------
                                         1999   1998           1999   1998
                                         ----   ----           ----   ----
Revenues-Interest and other income       $ 64   $ 85           $131   $171
Income before income taxes               $  2   $  3           $  4   $  6


                                     PAGE 9
<PAGE>

The collateralized mortgage obligations are considered debt securities held to
maturity as defined by SFAS 115, "Accounting for Certain Investments in Debt and
Equity Securities." At September 30, 1999 and March 31, 1999 the fair values of
the securities approximated cost. No unrealized holding gains or losses have
been recorded. Contractual maturities of these securities at September 30, 1999
are as follows (in thousands):

                              Amounts Maturing Within:
                              ------------------------

                              1 year                         $  205
                              2-5 years                         940
                              6-10 years                      1,310
                              Thereafter                        346
                                                             ------
                                                             $2,801
                                                             ======

NOTE 6 - COMMITMENTS AND CONTINGENCIES

During the quarter ended June 30, 1999 an additional charge of $50,000 was taken
to reflect the current period estimate for completing the termination of
home-building operations in Metropolitan Washington, D.C. The interim
Consolidated Financial Statements at September 30, 1999 reflect a liability of
$39,000 representing the remaining balance of the additional restructuring
provision associated with the termination of home-building operations in
Metropolitan Washington, D.C.. Although the Company believes that the remaining
provision is sufficient based on current period estimates, the actual cost may
be greater or less. (See note 8)

At September 30, 1999, the Company had commitments to purchase 629 finished
building lots in the Greater Tampa area at a total purchase price of
approximately $17,133,000 over a three-year period. Substantial deposits will be
forfeited if the Company is unable to satisfy these commitments. See Management
Discussion and Analysis of Financial Condition and Results of Operations-
Liquidity and Capital Resources.

The Company is involved from time to time in litigation arising in the ordinary
course of business, none of which is expected to have a material adverse effect
on the Company's financial position or the results of operations.

NOTE 7 - COMMON STOCK

At the 1998 Annual Meeting of Stockholders, which was held on September 17,
1998, the stockholders approved a proposal to adopt an amendment to the
Company's Restated Certificate of Incorporation to effect a 1-for-3 reverse
stock split of the Company's issued and outstanding common stock. The Amendment
did not change the par value of the common stock which remained at $.01 per
share. The Amendment became effective with the filing of a Certificate of
Amendment with the Secretary of State of Delaware on December 1, 1998. The
effect of the Reverse Stock Split has been retroactively reflected in the
statements for all periods presented.

At the 1999 Annual Meeting of Stockholders, to be held on November 16, 1999, the
stockholders will vote on proposals to adopt an amendment to the Company's
Restated Certificate of Incorporation to (i) effect a 1-for-500 reverse stock
split of the Company's issued and outstanding common stock and (ii) a reduction
in the number of shares of capital stock authorized. The Amendment, if approved,
will become effective with the filing of a Certificate of Amendment with the
Secretary of State of Delaware no later than November 30, 1999. If the 1-for-500
reverse stock split is approved, holders of record of fewer than 500 shares in
any discrete account will receive, in lieu of fractional shares, $5.40 for each
share owned immediately prior to the reverse stock split. The Amendment will not
change the par value of the common stock which will remain at $.01 per share.
The reverse stock split, if approved, is structured to be a "going private"
transaction as defined in Rule 13e-3 of the Securities and Exchange Act of 1934.


                                    PAGE 10
<PAGE>

NOTE 8 - RESTRUCTURING CHARGE

During the past several years a competitive housing market in Metropolitan
Washington, D.C., especially in the areas in which the Company conducted home
building operations, resulted in continued operating losses in the Company's
Metropolitan Washington, D.C. subsidiary. Management changes were made and
administrative costs were reduced in order to minimize the loss. In addition,
several communities in which operations had been performing poorly were
abandoned. Notwithstanding those changes, lower operating margins and higher
selling expenses continued to adversely affect the Company's ability to restore
profitability in the Metropolitan Washington, D.C. market. Accordingly during
the quarter ended December 31, 1997 the Board of Directors of the Company
approved management's plan to discontinue the building and sale of homes and
affect an orderly withdrawal from the Metropolitan Washington, D.C. housing
market.

The consolidated financial statements for the year ended March 31, 1998 include
a restructuring charge of $1,840,000 ($1,214,000 after benefit for federal
income tax) associated with the termination of home-building operations in
Metropolitan Washington, D.C.. The restructuring charge of $1,840,000 includes
the following: $701,000 for selling expenses; $277,000 for write-off of deferred
charges; $327,000 for loss on remaining homes; and $535,000 for administrative
and other. During the quarter ended June 30, 1999, the Company recognized an
additional $50,000 in restructuring charges. These additional charges were
primarily comprised of office lease termination fees incurred as a result of
exiting the Metropolitan Washington, D.C. market. At September 30, 1999, $39,000
of the restructuring charge is included in Accounts Payable and Accrued
Liabilities. A rollforward of the liability related to the restructuring charge,
by category, is as follows (in thousands):

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------
                                                                       Loss on
                                            Administrative  Deferred  remaining
                                 Selling       Charges      Charges     homes       Total
-----------------------------------------------------------------------------------------
<S>                               <C>          <C>           <C>         <C>        <C>
Restructuring Liability,
March 31, 1999                     --           $  6          --         --         $  6
-----------------------------------------------------------------------------------------
Additional Liability               --             50          --         --           50
-----------------------------------------------------------------------------------------
Expenses paid                      --            (17)         --         --          (17)
-----------------------------------------------------------------------------------------
Restructuring liability,
September 30, 1999                 --           $ 39          --         --         $ 39
-----------------------------------------------------------------------------------------
</TABLE>

                                     ITEM 2

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with, and is qualified in
its entirety by, the Consolidated Financial Statements and the notes thereto and
other financial information included elsewhere in this Quarterly Report on Form
10-Q. Certain statements in this Item 2 and Notes to Financial Statements
(Unaudited) and elsewhere in this Quarterly Report on Form 10-Q constitute
"forward-looking statements." Such forward- looking statements include
expectations concerning future operations, margins, profitability, liquidity and
capital resources. Although the Company believes that such forward-looking
statements are reasonable, it can give no assurance that any forward-looking
statements will prove to be correct. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors, that may cause the
actual results, performance or achievements of the Company to be materially
different from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such factors include, among others,
the demographic trends and other conditions impacting the housing market in the
areas in which the Company operates, competition in such areas, the availability
of financing, litigation outcomes, and general economic and business conditions,
which may impact levels of disposable income of potential home buyers.


                                    PAGE 11
<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

The interim Consolidated Financial Statements for the quarter ended September
30, 1999 reflect a liability of $39,000 representing the remaining balance of
the additional restructuring provision associated with the termination of
home-building operations in Metropolitan Washington, D.C.. (see note 8) The
actual cost may be greater or less than the remaining provision. The Company
believes that it has sufficient cash flow on hand to absorb the remaining costs
associated with the restructuring.

The Company, through its subsidiary, obtains financing from commercial banks for
a portion of the cost of acquiring finished building lots and for most of the
costs of the construction of homes. This financing is generally available for
homes that are subject to a contract of sale and also for a limited number of
homes in advance of sale. The Company's loan commitments as well as current
banking regulations limit the portion of each home that can be financed to
approximately 75% of its value. Since the Company uses its own capital resources
to fund those costs that cannot be financed, the Company's future growth will be
limited by the amount of such resources. As a result of the use of these
financing arrangements, the Company is currently, and expects to continue to be,
highly leveraged.

The Company currently has financing agreements in the aggregate amount of
$23,240,000 with commercial banks located in the area in which its subsidiary
operates. The terms of these financing agreements vary, are each for one year or
more from their date of origination, are generally guaranteed by the Company,
and are all secured by the related real estate inventory. The Company's Chairman
and President has agreed to personally guarantee a portion of the financing
agreements including a specific indemnification of certain environmental
conditions. The obligations of the Company's Chairman and President continue
during the term of the loan agreement subject to certain ratios and financial
performance of the Company which have been satisfied at September 30, 1999.

The Company generally acquires finished building lots under contracts which
spread the time for acquisition of such lots over a period of time that roughly
coincides with the estimated time required for the sale of the homes on those
lots. At September 30, 1999, the Company had commitments to purchase 629
finished building lots in the Greater Tampa area at a total purchase price of
approximately $17,133,000 over a three-year period. These commitments assure a
continuing supply of finished building lots in the future. In conjunction
therewith $130,000 of land options and deposits have been paid. A substantial
portion of those deposits will be forfeited if the Company is unable to satisfy
these commitments.

During the year ended March 31, 1996, the Company purchased a parcel of land in
Greater Tampa, Florida containing approximately 360 lots of which 300 were
undeveloped. At September 30, 1999, the Company had developed all of those
undeveloped lots into finished building lots and delivered 189 homes on those
lots in prior periods up to and including September 30, 1999. The Company
obtained financing from a commercial bank to fund a portion of the cost of
acquiring and developing the land.

The Company's short-term liquidity and its ability to operate over the short
term are reasonably assured by the financing agreements in place, by the
Company's backlog of sales contracts, and by the commitments to acquire finished
building lots. The Company's long-term liquidity is not affected by any material
capital expenditure but would be impacted by the inability to renew certain of
the financing agreements when they mature. The strength of the housing market in
the areas where the Company operates and the ability of the Company to maintain
a continued supply of finished building lots will also affect the Company's
long-term liquidity. Also, if the reverse stock split proposal (see note 7) is
approved, the cost to the Company (including expenses) of effecting the reverse
stock split and making payments in lieu of fractional shares is expected to
approximate $1,050,000. Management believes that the Company currently has
adequate financing and liquidity to meet its short-term financial obligations
and to fund the short-term acquisition and construction of inventory. However,
there is no assurance that such financing will be available to the Company in
the future. In addition, homebuilding is a cyclical industry with economic
conditions having a substantial impact on operating performance.


                                    PAGE 12
<PAGE>

YEAR 2000

The Company believes that Year 2000 issues are not material to its business and
that the consequences of such issues would not have a material effect on the
Company's business, results of operations or financial condition without taking
into account the Company's efforts to avoid those consequences. Nevertheless
management is taking what it believes to be all necessary steps to become Year
2000 compliant.

Substantially all of the Company's computers are relatively new and, when
purchased, were and are Year 2000 compliant. To bring all of its computer
systems into compliance, the Company has engaged ProSoft, Inc. to make the
changes necessary to make it Year 2000 compliant. ProSoft, Inc. commenced its
work during the fiscal quarter ending September 30, 1999 and expects to complete
its work prior to November 30, 1999. The Company estimates that the necessary
work will cost approximately $20,000. The costs for such work will be expensed.
Only limited testing of the Company's computer systems is expected to be
necessary.

Most of the materials used by the Company in connection with its home-building
activities are purchased from local suppliers for whom Year 2000 issues as they
relate to the Company are either non-existent or immaterial. The Company has
made inquiries of its principal suppliers, i.e., those firms from whom it
purchases appliances (General Electric Company), concrete (CSR/Rinker
Materials), lumber (Hillsborough Builders Supply) and windows (Norandex) but as
yet is not in a position to assess the Year 2000 readiness of such suppliers.
Because the Company is a relatively modest customer of the suppliers of certain
of those items, management believes that it will have only limited opportunities
to engage in interactive testing with such suppliers for the purpose of
determining Year 2000 readiness for transactions with them.

Because of the nature of the Company's relationship with its home-buyer
customers, Year 2000 issues are not directly relevant to such relationships.

The Company has not formulated any contingency plan with respect to its failure
or the failure of any of its suppliers to be Year 2000 compliant prior to
December 31, 1999. The Company does not believe that a failure by the Company or
any of its suppliers to be Year 2000 compliant by that date will have a material
adverse effect on its business.


                                    PAGE 13
<PAGE>

RESULTS OF OPERATIONS

The following table sets forth certain information with respect to homes
delivered and homes sold during the periods presented, as well as homes sold
under contract but not delivered ("Backlog") at the dates shown (dollars in
thousands).

                                Three Months Ended       Six Months Ended
                                   September 30,          September 30,
                                -----------------       -----------------
                                   1999      1998          1999      1998
                                -------   -------       -------   -------
Homes delivered
    Units                            99        79           192       188
    Home sales revenue          $14,910   $11,486       $28,940   $26,037
    Average sales price         $ 150.6   $ 145.4       $ 150.7   $ 138.5
Homes sold
    Units                            80        88           190       182
    Sales value                 $12,050   $12,366       $28,696   $25,503
    Average sales price         $ 150.6   $ 140.5       $ 151.0   $ 140.1

                                                         September 30,
                                                      -------------------
                                                       1999         1998
                                                      -------     -------
Backlog
    Units                                                 103         101
    Sales value                                       $15,021     $14,222
    Average sales price                               $ 145.8     $ 140.8

The increase in home sales revenues for the three months ended September 30,
1999 compared to the three months ended September 30, 1998 results from an
increase in the number of units delivered and an increase in the average sales
price of the units delivered. The increase in the number of units delivered
results from timing factors. The increase in the average sales price results
from a wider product range and price increases.

The Company realized a decrease in the number of homes sold during the three
months ended September 30, 1999 compared to the three months ended September 30,
1998. The average sales price of units sold increased during the quarter ended
September 30, 1999 over the comparable period in the prior fiscal year. The
decrease in the number of units sold results generally from timing factors. The
increase in average sales price results from a wider product range and price
increases.

The increase in home sales revenues for the six months ended September 30, 1999
compared to the six months ended September 30, 1998 results from the combination
of an increase in the number of units delivered and an increase in the average
sales price of units delivered. The increase in the number of units delivered
results generally from timing factors. The increase in average sales prices
results from a wider product range and price increases.

The number of homes sold during the six months ended September 30, 1999
increased when compared to the six months ended September 30, 1998. The increase
is attributable generally to timing factors. The increase in the average sales
price of homes sold during the six months ended September 30, 1999 compared to
the six months ended September 30, 1998 results from a wider product range and
price increases.


                                    PAGE 14
<PAGE>

Three months ended September 30, 1999 compared to three months ended September
30, 1998

The following table sets forth, for the periods indicated, certain information
regarding the Company's operations (dollars in thousands).

                                          Three Months Ended September 30,
                                    ------------------------------------------
                                           1999                     1998
                                    -----------------        -----------------
                                    Dollars       %          Dollars       %
                                    -------     -----        -------     -----
Home sales revenues                 $14,910     100.0        $11,486     100.0
Cost of home sales                   12,396      83.1          9,685      84.3
Gross profit                          2,514      16.9          1,801      15.7
Selling, general and
 administrative expenses              1,895      12.7          1,456      12.7
Income before income taxes              590       4.0            319       2.8

Gross profit increased for the three months ended September 30, 1999 and gross
profit as a percentage of home sales revenues also increased. The increase in
gross profit is attributed to the increase in home sales revenues and a decrease
in the cost of home sales as a percentage of home sales revenues.

Selling, general and administrative expenses for the three months ended
September 30, 1999 increased in amount but were constant as a percentage of home
sales revenues with the prior comparable period. Selling expenses increased in
amount and slightly as a percentage of home sales revenues. The increase in
selling expenses results from higher home sales revenues. General and
administrative expenses increased in amount but decreased slightly as a
percentage of home sales revenues. The increase in general and administrative
expenses in attributed primarily to higher employment costs.

The change in income before income taxes for the three months ended September
30, 1999 compared to the three months ended September 30, 1998 reflects the
changes in all the components of income and expense set forth above.

For the three months ended September 30, 1999 and September 30, 1998 a provision
for income taxes of $212,000 and $131,000 was recorded. For both periods the
rates were calculated at statutory rates.

Interest and other income includes $64,000 and $85,000 and interest expense
include $62,000 and $82,000 for the three months ended September 30, 1999 and
September 30, 1998 respectively, from wholly-owned finance subsidiaries
established in prior years to sell collateralized mortgage obligations through
participation in various multi-builder bond programs.


                                    PAGE 15
<PAGE>

Six months ended September 30, 1999 compared to the six months ended September
30, 1998

The following table sets forth, for the periods indicated, certain information
regarding the Company's operations (dollars in thousands).

<TABLE>
<CAPTION>
                                                   Six months Ended September 30,
                                                 ---------------------------------
                                                      1999               1998
                                                 --------------     --------------
                                                 Dollars    %       Dollars    %
                                                 -------  -----     -------  -----
<S>                                              <C>      <C>       <C>      <C>
Home sales revenues                              $28,940  100.0     $26,037  100.0
Cost of home sales                                24,188   83.6      21,961   84.3
Gross profit                                       4,752   16.4       4,076   15.7
Selling, general and administrative expenses       3,574   12.3       3,045   11.7
Income before restructuring charge, reversal of
 creditor liability and income taxes               1,128    3.9         973    3.7
Restructuring charge                                  50     .2          --     --
Reversal of creditor liability                        --     --       1,322    5.1
Income before income taxes                         1,078    3.7       2,295    8.8
</TABLE>

Gross profit increased for the six months ended September 30, 1999 and gross
profit as a percentage of home sales revenues also increased. The increase in
gross profit is attributed to the increase in home sales revenues and a decrease
in the cost of home sales as a percentage of home sales revenues.

Selling, general and administrative expenses for the six months ended September
30, 1999 increased in amount and as a percentage of home sales revenues over the
prior comparable period. Selling expenses increased in amount and slightly as a
percentage of homes sales revenues. The increase in selling expenses results
primarily from higher home sales revenues. General and administrative expenses
increased in amount and as a percentage of homes sales revenues. The increase in
general and administrative expenses is attributed primarily to higher employment
costs.

The change in income before restructuring charge, reversal of creditor liability
and income taxes for the six months ended September 30, 1999 compared to the six
months ended September 30, 1998 reflects the changes in gross profit and
selling, general and administrative expenses.

The reversal of creditor liability results from the elimination of the estimated
liability for potential distributions of cash flow to creditors provided during
the year ended March 31, 1993. (see note 3, "plan of reorganization")

The restructuring charge reflects $50,000 in restructuring charges recorded
during the quarter ended June 30, 1999. (see note 8, "restructuring charge")

The change in income before income taxes for the six months ended September 30,
1999 compared to the six months ended September 30, 1998 reflects the changes in
all the components of income and expense set forth above.

For the six months ended September 30, 1999 and September 30, 1998 a provision
for income taxes of $384,000 and $401,000 was recorded. For both periods the
rates were calculated at statutory rates.

Interest and other income includes $131,000 and $171,000 and interest expense
includes $127,000 and $165,000 for the six months ended September 30, 1999 and
September 30, 1998, respectively, from wholly-owned finance subsidiaries
established in prior years to sell collateralized mortgage obligations through
participation in various multi-builder bond programs.


                                    PAGE 16
<PAGE>

ITEM 3

        QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

             None

Part II.   Other Information

ITEM 2

         CHANGES IN SECURITIES AND USE OF PROCEEDS

        (a)  On December 1, 1998 the Company effected a 1-for-3 reverse stock
             split combination of its shares of common stock.

ITEM 6

        EXHIBITS AND REPORTS ON FORM 8-K

        (a)  Exhibits

             None

        (b)  Reports on Form 8-K

             On October 28, 1999 the registrant filed a Current Report on Form
             8-K with respect to Item 5 (Other Events) and Item 7 (Financial
             Statements and Exhibits).


                                    PAGE 17
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                             INTERNATIONAL AMERICAN HOMES, INC.


Date: November 12, 1999                 By: /s/ Robert J. Suarez
                                           -------------------------------------
                                        Robert J. Suarez
                                        President


Date: November 12, 1999                 By: /s/ Robert I. Antle
                                           -------------------------------------
                                        Robert I. Antle
                                        Executive Vice President, Treasurer, and
                                        Chief Financial Officer


                                    PAGE 18