SECURITIES
AND EXCHANGE COMMISSION


Washington,
D.C. 20549




FORM
10-Q




x Quarterly report
under Section 13 or 15(d) of the Securities Exchange Act of 1934 for the
quarterly period ended Dec 31, 2008








o  Transition
report under Section 13 or 15(d) of the Securities  Exchange Act of
1934 for the transition period from ______________ to
______________








Commission
file number: 333-144765







AFFORDABLE
GREEN HOMES INTERNATIONAL, INC.


Exact
name of small business issuer as specified in its charter)







Nevada
              87-0785410(State
      or other jurisdiction of incorporation or
      organization)
              I.R.S.
      Employer Identification no.







1325 Spruce St, Suite
200


Riverside,
CA 92507


(Address
of principal executive office)




(951) 538-8362


(Issuer's
telephone number)





SECURITIES
REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:  NONE







SECURITIES
REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:  COMMON STOCK, PAR
VALUE $.001 PER SHARE







Check
whether the Registrant:  (1) filed all reports required to be filed by
Section 13 or 15(d) of the  Exchange Act during the past 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 xNo o







Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange act).





Yes oNo x






The
number of outstanding shares of the Registrant's common stock, $0.001 par value,
as of December 31, 2008 was 12,925,000.










1







AFFORDABLE
GREEN HOMES INTERNATIONAL, INC.




TABLE
OF CONTENTS




PART
      I:
                FINANCIAL
      INFORMATION
                PageItem
      1.
                Financial
      Statements
                3Item
      2.
                Managements
      Discussion and Analysis of Financial  Condition and Plan of
      Operations
                9Item
      3.
                Controls
      and Procedures
                11PART
      II:
                OTHER
      INFORMATION
                11Item
      1.
                Legal
      Proceedings
                11Item
      2.
                Changes
      in Securities
                11Item
      3.
                Defaults
      upon Senior Securities
                11Item
      4.
                Submission
      of Matters for a Vote of Security Holders
                11Item
      5.
                Other
      Information
                11Item
      6.
                Exhibits
      and Reports on Form 8-K
                12SIGNATURES
                12







This Form
10-Q contains forward-looking statements within the meaning of the "safe harbor"
provisions under Section 21E of the Securities Exchange Act of 1934. We use
forward-looking statements in our description of our plans and objectives for
future operations and assumptions underlying these plans and objectives.
Forward-looking terminology includes the words "may," "expects," "believes,"
"anticipates," "intends," "projects," or similar terms, variations of such terms
or the negative of such terms. These forward-looking statements are based on
management's current expectations and are subject to factors and uncertainties,
which could cause actual results to differ materially from those, described in
such forward-looking statements. We expressly disclaim any obligation or
undertaking to release publicly any updates or revisions to any forward-looking
statements contained in this Form 10-Q to reflect any change in our expectations
or any changes in events, conditions or circumstances on which any
forward-looking statement is based. Factors, which could cause such results to
differ materially from those described in the forward-looking statements, and
elsewhere,, are incorporated by reference into this Form 10-Q. The term the
"Company" includes Affordable Green Homes International, Inc.












2




PART
I: FINANCIAL INFORMATION





Item
      1.
            Financial
      Statements





In the
opinion of management, the accompanying unaudited condensed financial statements
have been prepared in accordance with generally accepted accounting principles
for interim financial information and with the instructions to Form
10-Q.  Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation of
the Company's financial position as of December 31, 2008 and the results of its
operations and cash flows for the three months ended December 31, 2008 have been
made.  Operating results for the three months ended December 31, 2008
are not necessarily indicative of the results that may be expected for the year
ended March 31, 2009








Affordable Green Homes
International


(A
Development Stage Company)


Financial
Statements


(Unaudited)








TABLE
OF CONTENTS







PageBalance Sheets -
      March 31, 2008 and December 31, 2008 (Unaudited)
            4Statements of
      Operations (Unaudited) - Three and Nine Months Ended December 31, 2008 and
      2007 and the Period from October 10, 2006 (Inception) to September 30,
      2008
            5Statements of Cash
      Flows (Unaudited) - Nine Months Ended December 31, 2008 and 2007 and the
      Period from October 10, 2006 (Inception) to September 30, 2008
            6Notes to Financial
      Statements
            7











3




AFFORDABLE
      GREEN HOMES INTERNATIONAL(A
      Development Stage Company)BALANCE
      SHEETSDec.
      31, 2008March
      31, 2008
                                    
                                    
                                    (Unaudited)ASSETSCurrent
      assetsCash
                                    
                                    $
                                    -
                                    
                                    
                                    $
                                    1,367Total current
      assets
                                    
                                    
                                    -
                                    
                                    
                                    
                                    1,367Total
      Assets
                                    
                                    $
                                    -
                                    
                                    
                                    $
                                    1,367LIABILITIES
      & STOCKHOLDERS' EQUITYCurrent
      liabilitiesBank
      overdraft
                                    
                                    $
                                    229
                                    
                                    
                                    $
                                    -Accounts
      payable
                                    
                                    
                                    
                                    
                                    
                                    
                                    2,706Related
      party payables
                                    
                                    
                                    38,383
                                    
                                    
                                    
                                    67,510Total current
      liabilties
                                    
                                    
                                    38,612
                                    
                                    
                                    
                                    70,216Total
      Liabilities
                                    
                                    
                                    38,612
                                    
                                    
                                    
                                    70,216Stockholders'
      EquityCommon
      stock, $.0001 par value;25,000,000
      shares authorized;9,925,000
      (March 2008) and12,925,000
      (Dec. 2008) shares issuedand
      outstanding
                                    
                                    
                                    993
                                    
                                    
                                    
                                    1,293Additional
      paid in capital
                                    
                                    
                                    98,257
                                    
                                    
                                    
                                    120,457Deficit
      accumulated during thedevelopment
      stage
                                    
                                    
                                    (137,862
                                    )
                                    
                                    
                                    (190,599
                                    )Total
      Stockholders' Equity
                                    
                                    
                                    (38,612
                                    )
                                    
                                    
                                    (68,849
                                    )Total
      Liabilities and Stockholders' Equity
                                    
                                    $
                                    -
                                    
                                    
                                    $
                                    1,367The
      accompanying notes are an integral part of the financial
      statements.
  
 4




AFFORDABLE
      GREEN HOMES INTERNATIONAL(A
      Development Stage Company)STATEMENTS
      OF OPERATIONS(Unaudited)Period
      FromOct.
      10, 2006Three
      Months
                                                    
                                                    
                                                    Three
      Months
                                                    
                                                    
                                                    Nine
      Months
                                                    
                                                    
                                                    Nine
      Months
                                                    
                                                    
                                                    (Inception)Ended
                                                    
                                                    
                                                    Ended
                                                    
                                                    
                                                    Ended
                                                    
                                                    
                                                    Ended
                                                    
                                                    
                                                    ToDec.
      31, 2007
                                                    
                                                    
                                                    Dec.
      31, 2008
                                                    
                                                    
                                                    Dec.
      31, 2007
                                                    
                                                    
                                                    Dec.
      31, 2008
                                                    
                                                    
                                                    Dec.
      31, 2008Revenues
                                                    
                                                    $
                                                    -
                                                    
                                                    
                                                    $
                                                    -
                                                    
                                                    
                                                    $
                                                    -
                                                    
                                                    
                                                    $
                                                    -
                                                    
                                                    
                                                    $
                                                    --
                                                    
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    
                                                    -Operating
      expenses:Amortization
      & depreciation
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    
                                                    -General
      and administrative
                                                    
                                                    
                                                    12,945
                                                    
                                                    
                                                    
                                                    15,329
                                                    
                                                    
                                                    
                                                    18,453
                                                    
                                                    
                                                    
                                                    52,737
                                                    
                                                    
                                                    
                                                    190,59912,945
                                                    
                                                    
                                                    
                                                    15,329
                                                    
                                                    
                                                    
                                                    18,453
                                                    
                                                    
                                                    
                                                    52,737
                                                    
                                                    
                                                    
                                                    190,599Gain
      (loss) from operations
                                                    
                                                    
                                                    (12,945
                                                    )
                                                    
                                                    
                                                    (15,329
                                                    )
                                                    
                                                    
                                                    (18,453
                                                    )
                                                    
                                                    
                                                    (52,737
                                                    )
                                                    
                                                    
                                                    (190,599
                                                    )Other
      income (expense):
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    
                                                    -Income
      (loss) beforeprovision
      for income taxes
                                                    
                                                    
                                                    (12,945
                                                    )
                                                    
                                                    
                                                    (15,329
                                                    )
                                                    
                                                    
                                                    (18,453
                                                    )
                                                    
                                                    
                                                    (52,737
                                                    )
                                                    
                                                    
                                                    (190,599
                                                    )Provision
      for income tax
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    
                                                    -Net
      income (loss)
                                                    
                                                    $
                                                    (12,945
                                                    )
                                                    
                                                    $
                                                    (15,329
                                                    )
                                                    
                                                    $
                                                    (18,453
                                                    )
                                                    
                                                    $
                                                    (52,737
                                                    )
                                                    
                                                    $
                                                    (190,599
                                                    )Net
      income (loss) per share(Basic
      and fully diluted)
                                                    
                                                    $
                                                    (0.00
                                                    )
                                                    
                                                    $
                                                    (0.00
                                                    )
                                                    
                                                    $
                                                    (0.00
                                                    )
                                                    
                                                    $
                                                    (0.00
                                                    )Weighted
      average number ofcommon
      shares outstanding
                                                    
                                                    
                                                    9,925,000
                                                    
                                                    
                                                    
                                                    12,925,000
                                                    
                                                    
                                                    
                                                    9,925,000
                                                    
                                                    
                                                    
                                                    12,647,222The
      accompanying notes are an integral part of the financial
      statements.








5




AFFORDABLE
      GREEN HOMES INTERNATIONAL(A
      Development Stage Company)STATEMENTS
      OF CASH FLOWS(Unaudited)Period
      FromOct.
      10, 2006Nine
      Months
                                                          
                                                          
                                                          Nine
      Months
                                                          
                                                          
                                                          (Inception)Ended
                                                          
                                                          
                                                          Ended
                                                          
                                                          
                                                          ToDec.
      31, 2007
                                                          
                                                          
                                                          Dec.
      31, 2008
                                                          
                                                          
                                                          Sept.
      30, 2008Cash
      Flows From Operating Activities:Net
      income (loss)
                                                          
                                                          $
                                                          (18,453
                                                          )
                                                          
                                                          $
                                                          (52,737
                                                          )
                                                          
                                                          $
                                                          (190,599
                                                          )Adjustments
      to reconcile net loss tonet
      cash provided by (used for)operating
      activities:Amortization
      & depreciationBank
      overdraft
                                                          
                                                          
                                                          (2,000
                                                          )
                                                          
                                                          
                                                          (229
                                                          )Accounts
      payables
                                                          
                                                          
                                                          73
                                                          
                                                          
                                                          
                                                          2,706
                                                          
                                                          
                                                          
                                                          2,706Related
      party payables
                                                          
                                                          
                                                          20,288
                                                          
                                                          
                                                          
                                                          29,127
                                                          
                                                          
                                                          
                                                          67,510Compensatory
      stock issuances
                                                          
                                                          
                                                          
                                                          
                                                          
                                                          
                                                          
                                                          
                                                          
                                                          
                                                          23,000Net cash provided by (used
      for)operating
      activities
                                                          
                                                          
                                                          (92
                                                          )
                                                          
                                                          
                                                          (21,133
                                                          )
                                                          
                                                          
                                                          (97,383
                                                          )Cash
      Flows From Investing Activities:-
                                                          
                                                          
                                                          
                                                          -
                                                          
                                                          
                                                          
                                                          -Net
      cash provided by (used for)investing
      activities
                                                          
                                                          
                                                          -
                                                          
                                                          
                                                          
                                                          -
                                                          
                                                          
                                                          
                                                          -Cash
      Flows From Financing Activities:Sales
      of common stock
                                                          
                                                          
                                                          
                                                          
                                                          
                                                          
                                                          22,500
                                                          
                                                          
                                                          
                                                          98,750Net cash provided by (used
      for)financing
      activities
                                                          
                                                          
                                                          -
                                                          
                                                          
                                                          
                                                          22,500
                                                          
                                                          
                                                          
                                                          98,750Net
      Increase (Decrease) In Cash
                                                          
                                                          
                                                          -
                                                          
                                                          
                                                          
                                                          1,367
                                                          
                                                          
                                                          
                                                          1,367Cash
      At The Beginning Of The Period
                                                          
                                                          
                                                          92
                                                          
                                                          
                                                          
                                                          -
                                                          
                                                          
                                                          
                                                          -Cash
      At The End Of The Period
                                                          
                                                          $
                                                          92
                                                          
                                                          
                                                          $
                                                          1,367
                                                          
                                                          
                                                          $
                                                          1,367Schedule
      Of Non-Cash Investing And Financing ActivitiesNoneSupplemental
      DisclosureCash
      paid for interest
                                                          
                                                          $
                                                          -
                                                          
                                                          
                                                          $
                                                          -
                                                          
                                                          
                                                          $
                                                          -Cash
      paid for income taxes
                                                          
                                                          $
                                                          -
                                                          
                                                          
                                                          $
                                                          -
                                                          
                                                          
                                                          $
                                                          -The
      accompanying notes are an integral part of the financial
      statements.




6
 AFFORDABLE
GREEN HOMES INTERNATIONAL
 (A
Development Stage Company)
 NOTES
TO FINANCIAL STATEMENTS
 (Unaudited)




NOTE
1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES:





Affordable
Green Homes International (the “Company”), was incorporated in the State
of Nevada on October 10, 2006. The Company is in business to build
affordable family homes for lower income workers in Mexico and South American
countries by using low cost structural concrete insulated panels as the basic
construction methodology. The Company plans to purchase land for development,
and to market and build finished homes using  local
labor.





Basis of
Presentation





The
accompanying unaudited financial statements have been prepared in accordance
with the instructions to Form 10-QSB and do not include all of the information
and disclosures required by generally accepted accounting principles for
complete financial statements. All adjustments which are, in the opinion of
management, necessary for a fair presentation of the results of operations for
the interim periods have been made and are of a recurring nature unless
otherwise disclosed herein. The results of operations for such interim periods
are not necessarily indicative of operations for a full year.





Cash and cash
equivalents





The
Company considers all highly liquid investments with an original maturity of
three months or less as cash equivalents.





Accounts
receivable





The
Company reviews accounts receivable periodically for collectability and
establishes an allowance for doubtful accounts and records bad debt expense when
deemed necessary.





Property and
equipment





Property
and equipment are recorded at cost and depreciated under straight line methods
over each item's estimated useful life.





Revenue
recognition





Revenue
is recognized on an accrual basis as earned under contract terms.

























7
 AFFORDABLE
GREEN HOMES INTERNATIONAL
 (A
Development Stage Company)
 NOTES
TO FINANCIAL STATEMENTS
 (Unaudited)


NOTE
1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued):





Use of
Estimates





The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.





Income
tax





The
Company accounts for income taxes under Statement of Financial Accounting
Standards No. 109 (“SFAS 109”). Under SFAS 109 deferred taxes are provided on a
liability method whereby deferred tax assets are recognized for deductible
temporary differences and operating loss carryforwards and deferred tax
liabilities are recognized for taxable temporary differences. Temporary
differences are the differences between the reported amounts of assets and
liabilities and their tax bases. Deferred tax assets are reduced by a valuation
allowance when, in the opinion of management, it is more likely than not that
some portion or all of the deferred tax assets will not be realized. Deferred
tax assets and liabilities are adjusted for the effects of changes in tax laws
and rates on the date of enactment.





Net income (loss) per
share





The net
income (loss) per share is computed by dividing the net income (loss) by the
weighted average number of shares of common outstanding. Warrants, stock
options, and common stock issuable upon the conversion of the Company's
preferred stock (if any), are not included in the computation if the effect
would be anti-dilutive and would increase the earnings or decrease loss per
share.





Financial
Instruments





The
carrying value of the Company’s financial instruments as reported in the
accompanying balance sheet, approximates fair value.











8




Item
      2.
            Management’s
      Discussion and Analysis of Financial Condition and Plan of
      Operations





This
analysis should be read in conjunction with the condensed consolidated financial
statements, the notes thereto, and the financial statements and notes thereto
included in the Company's Registration Statement on Form SB-2, as amended,
initially filed on July 23, 2007.  Post-effective amendment no. 2 to
form SB-2 on form S-1 registration statement under the securities act of
1933 was filed on July 8, 2008. All non-historical information contained in this
annual report is a forward-looking statement. The forward-looking statements
contained herein are subject to certain risks and uncertainties that could cause
the actual results to differ materially from those reflected in the
forward-looking statements.







Results
of Operations





Total
revenue was $0 for the quarter ended December 31, 2008 as compared to $0 for the
year ended March 31 2008. The Company spent the quarter solidifying
relationships, raising sufficient capital and acquiring rights to infrastructure
ready lands on which to exercise its plan of operation.  Officer and
Administrative Compensation was donated during this period and the Company did
not book any accrued compensation. Total Assets were $1,367 at December 31, 2008
as compared to $0 at March 31, 2008.







Plan
of Operations





Texas –The Company intends to
start construction of one house in the northern panhandle Texas city of Stinnett
by the end of February. Construction financing has been negotiated and will be
finalized by the end of February. We are in negotiations to purchase 5-9
building lots in the city. We believe that with the completion of one “model”
house, we will create a demand for our Structural Concrete Insulated
Panels  (SCIP) houses.





The house
that exists in Crystal Beach is creating major interest.  There are
many homeowners that need to have destroyed homes rebuilt and are seriously
considering SCIP technology for their replacement homes.  We are also
in discussions with some of the major insurance carriers to do home
replacement.  With our technology, we can build homes faster and
cheaper that traditional “stick” construction.  Our homes will be
better able to survive an extreme weather event.





Mexico– The Company has
entered into an agreement with a local land owner in Torreon, Mexico, that has a
contract to deliver 120 homes for the local teachers union.  In Mexico
there are several programs that are ‘forced’ savings (similar to our social
security) which one is only allowed to draw against for the purpose of putting a
deposit for the purchase of a home.  In this specific case the
teachers each have between $350,000 and $400,000 Pesos in their savings account
and will receive the balance of the mortgage ($800,000 pesos) from INFONAVIT and
CONAVI.   The Company will have effective, clear and complete
title to each fully improved lot and primary recourse to the mortgage contract
until it is paid the balance it is owed by the teachers and
INFONAVIT.  All 120 homes in this development will be pre-sold to 120
individual members of the teacher’s union prior to any construction taking
place.  All homes are to be delivered before December 31, 2009.
Construction financing is presently in the final stages of negotiations and we
expect to finalize our agreements by the middle of March, 2009.





The
Company has started construction of 4 model homes in the area of
Torreon.  The property is (just East of the International airport and
adjacent to the American International School).  The company is also
in contract to purchase raw land located about 20 miles east of the town of
Torreon. This is a fast growing area and the State has made plans to widen
the access road from a 2 lane highway to a 4 lane highway. The location has
power and water on the property and has all the entitlements necessary to pass
ownership and begin construction. The estimated cost to build a 1200 square foot
home is $25,000. Comparable completed homes in this area are selling for
$45,000. We anticipate construction of the models will be completed by the end
of March. We believe that we will begin taking deposits for construction by
April 15th.  It
is our current plan to build 10-15 houses per month with the goal of increasing
production to 20 homes per month by summer.





The
demand for homes in Mexico and many other countries is significant. We have
designed several homes from 1,100 to 1,400 square feet. These homes are built
out of high quality lightweight prefabricated Structural Concrete Insulated
Panels (SCIP’s). The interior and exterior surfaces of the panels are covered
with a concrete coating, designed and tested to resist hurricanes, tornados and
earthquakes and provide high energy efficiency reducing heating and cooling
costs.. When the homes are completed they are significantly more structurally
sound than wood or concrete alone and can typically be constructed in less than
30 days. We are convinced that there is a real need for homes like these in the
economically burgeoning areas in which we are concentrating.





This
construction process is extremely fast because the panels come in 4x8 feet to
5x12 feet panels. The average size of the homes to be built in the large scale
project will be 800 square feet. The average home can be erected with walls and
roof in 4-5 days ready for the application of concrete to the interior and
exterior walls and roof. These panels have a higher insulation factor and sound
transmission coefficient than conventional buildings.





AFFORDABLE
GREEN HOMES energy efficient homes will be an answer to the needs of millions of
people in the hurricane affected parts of the U.S.A, as with Mexico
and other countries that are looking for a low cost and low maintenance shelter
for their peoples.






9




Item
      2.
            Management’s
      Discussion and Analysis of Financial Condition and Plan of Operations
      -
      continued  Markets/
Potential Customer Base





Some of
the countries we have been in contact with to build affordable housing in
addition to Mexico are:





PeruNigeriaSaipanGuamIndiaBrazil





Texas -
we also intend to use our SCIP methodology to rebuild structures that were wiped
out by Hurricane Ike.  The Galveston coastline was destroyed for many
miles.  A house was constructed in the Crystal Beach suburb of
Galveston.  The house was constructed using the SCIP methodology by
Ron Bell.  Mr. Bell is coming to work for Affordable Green Homes
International, Inc.  Officials from FEMA as well as Texas Tech
University have spent time at the house examining why this house was virtually
intact while every structure around it was completely washed
away.  They have indicated to us that they have interest in the SCIP
methodology.





We
believe that there exists a credible opportunity for the company to expand the
use of our methodology in the Gulf of Mexico region.  This has the
possibility of creating a demand for the SCIP panels themselves that we would
produce.  The demand will be far in excess of the panels that we would
use ourselves.







EXPENDITURESThe
      following chart provides an overview of our budgeted expenditures using
      our existing cash resources, by significant area of activity for each
      quarter, over the next 12
months:




ITEMS
                              
                              Jan-Mar
                              
                              
                              Apr-Jun
                              
                              
                              Jul-Sep
                              
                              
                              Oct-Dec
                              
                              
                              12
      Month TotalLegal/Accounting
                              
                              
                              3,000
                              
                              
                              
                              5,000
                              
                              
                              
                              7,500
                              
                              
                              
                              10,000
                              
                              
                              
                              25,500Transfer
      Agent
                              
                              
                              500
                              
                              
                              
                              500
                              
                              
                              
                              500
                              
                              
                              
                              500
                              
                              
                              
                              2,000Web
      Site Development
                              
                              
                              1,500
                              
                              
                              
                              500
                              
                              
                              
                              500
                              
                              
                              
                              500
                              
                              
                              
                              3,000Office
      Rent
                              
                              
                              500
                              
                              
                              
                              500
                              
                              
                              
                              500
                              
                              
                              
                              500
                              
                              
                              
                              2,000Travel
      Expenses
                              
                              
                              1,500
                              
                              
                              
                              2,500
                              
                              
                              
                              2,500
                              
                              
                              
                              2,500
                              
                              
                              
                              9,000Video
      Production
                              
                              
                              1,500
                              
                              
                              
                              500
                              
                              
                              
                              500
                              
                              
                              
                              500
                              
                              
                              
                              3,000Advertising
                              
                              
                              1,000
                              
                              
                              
                              1,000
                              
                              
                              
                              1,000
                              
                              
                              
                              1,000
                              
                              
                              
                              4,000Office
      Equipment & Supplies
                              
                              
                              200
                              
                              
                              
                              200
                              
                              
                              
                              200
                              
                              
                              
                              200
                              
                              
                              
                              800TOTALS:
                              
                              $
                              9,700
                              
                              
                              $
                              10,700
                              
                              
                              $
                              13,200
                              
                              
                              $
                              15,700
                              
                              
                              $
                              49,300





LIQUIDITY
and CASH RESOURCES:





The
company has started raising capital and believes that it will raise enough to
complete the building of  the 4 models for Phase I of the Torreon
Mexico Project by mid-March.  It is our goal to raise four million
dollars ($4,000,000 USD) by April 30, 2009.  After we complete
construction on the model homes in Torreon, we will begin taking orders and
deposits from the members of the Teachers Union for new homes.  It is
our goal to close our first homes by the end of March.





How long
Affordable Green Homes will be able to satisfy its cash requirements depends on
how quickly our company can generate investment capital or revenue and how much
revenue can be generated. Although there can be no assurance at the present, the
company plans to be in a position to generate construction revenues by April,
2009.






10




Item
      3.
            Controls
      and Procedures





As
required by Rule 13a-15 under the Securities Exchange Act of 1934, as of the end
of the period covered by this quarterly report, our management concluded its
evaluation of the effectiveness of the design and operation of our
disclosure controls and procedures. Disclosure controls and procedures are
controls and procedures designed to reasonably assure that information required
to be disclosed in our reports filed under the Securities Exchange Act of 1934,
such as this quarterly report, is recorded, processed, summarized and reported
within the time periods prescribed by SEC rules and regulations, and to
reasonably assure that such information is accumulated and communicated to our
management, including our President, to allow timely decisions regarding
required disclosure.




As of the
evaluation date, our CEO who also serves as our principal financial and
accounting officer, concluded that we do not maintain disclosure controls and
procedures that are effective in providing reasonable assurance that information
required to be disclosed in our reports under the Securities Exchange Act of
1934 is recorded, processed, summarized and reported within the time periods
prescribed by SEC rules and regulations, and that such information is
accumulated and communicated to our management to allow timely decisions
regarding required disclosure.  Our CEO is not a financial or
accounting professional, and we do not have any other employees, including a
chief financial officer, comptroller or similarly titled senior financial
officer, or any accounting personnel sufficiently trained in the application of
generally accepted accounting principles.  As a result of our limited
financial  resources, we do not anticipate that we will be in a position to
engage such properly trained professional accounting personnel or a senior
financial officer in the foreseeable future.  Until we are able to
engage a qualified financial officer, and/or properly trained accounting staff,
we may continue to experience material weaknesses in our disclosure controls
that may result in errors in our financial statements in future
periods.





There
were no significant changes in our internal controls or in other factors that
could significantly affect those controls since the most recent evaluation
of such controls.








PART
II: OTHER INFORMATION




Item1.
            Legal
      Proceedings




None






Item
      2.
            Changes
      in Securities




None






Item
      3.
            Defaults
      upon Senior Securities




None






Item
      4.
            Submission
      of Matters to a Vote of Security
Holders




None







Item
      5.
            Other
      Information





None






11




Item
      6.
            Exhibits
      and Reports on Form 8-K





(a)
Exhibits




Exhibit
      #
                Description31.1
                Certificate of Principal Executive
      Officer31.2
                Certificate of Principal Accounting
      Officer32.1
                Certification Pursuant to 18 U.S.C. 1350, as
      Adopted Pursuant to  Section 906 of the Sarbanes-Oxley Act of
      200232.2
                Certification Pursuant to 18 U.S.C. 1350, as
      Adopted Pursuant to  Section 906 of the Sarbanes-Oxley Act of
      2002






(b)
Reports on Form 8-K





None








SIGNATURES





In
accordance with Section 13 or 15(d) of the Securities Exchange Act of 1934, the
Registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized














AFFORDABLE
      GREEN HOMES INTERNATIONAL, INC.
                (Registrant)Date:
      February 17, 2009
              By:
              /s/ Michael
      P VahlMichael
      P Vahl, CEO/President






12