|                                                        |
|--------------------------------------------------------|
| M/I HOMES, INC.                                        |
| (Exact name of registrant as specified in its charter) |

|                                   |        |                     |
|-----------------------------------|--------|---------------------|
| Ohio                              |   | 31-1210837          |
| (State or other jurisdiction      |   | (I.R.S. Employer    |
| of incorporation or organization) |   | Identification No.) |

|                                                                                                                                              |
|----------------------------------------------------------------------------------------------------------------------------------------------|
| 3 Easton Oval, Suite 500, Columbus, Ohio 43219                                                                                          |
| (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code:  (614) 418-8000 |

|                                                                                   |        |                          |
|-----------------------------------------------------------------------------------|--------|--------------------------|
|                                                                              |   | Name of each exchange on |
| Title of each class                                                               |   | which registered         |
| Common Shares, par value $.01                                                     |   | New York Stock Exchange  |
| Depositary Shares, each representing 1/1000th of a 9.75% Series A Preferred Share |   | New York Stock Exchange  |

|        |     |        |        |    |         |
|--------|-----|--------|--------|----|---------|
|   | Yes |   |   | No | X  |

|        |     |        |        |    |   |
|--------|-----|--------|--------|----|---|
|   | Yes |   |   | No | X |

|        |           |   |        |          |        |
|--------|-----------|---|--------|----------|--------|
|   | Yes  | X |   | No  |   |

----

|        |           |        |        |    |        |
|--------|-----------|--------|--------|----|--------|
|   | Yes  |   |   | No |   |

|                                               |        |        |                           |        |
|-----------------------------------------------|--------|--------|---------------------------|--------|
| Large accelerated filer                       |   |   | Accelerated filer         | X      |
|                                          |   |   |                      |   |
| Non-accelerated filer                         |   |   | Smaller reporting company |   |
| (Do not check if a smaller reporting company) |   |   |

|        |     |        |        |    |   |
|--------|-----|--------|--------|----|---|
|   | Yes |   |   | No | X |

----

|            |                                                                                                                                |            |
|------------|--------------------------------------------------------------------------------------------------------------------------------|------------|
|       |                                                                                                                           | PAGENUMBER |
|       |                                                                                                                           |       |
| Part I     |                                                                                                                           |
|       | Item 1.       Business                                                                      | 4          |
|       |                                                                                                                           |       |
|       | Item 1A.    Risk Factors                                                                                   | 12         |
|       |                                                                                                                           |       |
|       | Item 1B.    Unresolved Staff Comments                                                                      | 23         |
|       |                                                                                                                           |       |
|       | Item 2.       Properties                                                                    | 23         |
|       |                                                                                                                           |       |
|       | Item 3.       Legal Proceedings                                                             | 23         |
|       |                                                                                                                           |       |
| Part II    |                                                                                                                           |
|       | Item 5.       Market for Registrant’s Common Equity, Related Shareholder Matters and  | 25         |
|       | Issuer Purchases of Equity Securities                                                                                          |       |
|       |                                                                                                                           |       |
|       | Item 6.       Selected Financial Data                                                       | 27         |
|       |                                                                                                                           |       |
|       | Item 7.       Management’s Discussion and Analysis of Financial Condition and Results | 28         |
|       | of Operations                                                                                                                  |       |
|       |                                                                                                                           |       |
|       | Item 7A.    Quantitative and Qualitative Disclosures About Market Risk                                     | 52         |
|       |                                                                                                                           |       |
|       | Item 8.       Financial Statements and Supplementary Data                                   | 54         |
|       |                                                                                                                           |       |
|       | Item 9.       Changes in and Disagreements With Accountants on Accounting and               | 93         |
|       | Financial Disclosure                                                                                                           |       |
|       |                                                                                                                           |       |
|       | Item 9A.    Controls and Procedures                                                                        | 93         |
|       |                                                                                                                           |       |
|       | Item 9B.    Other Information                                                                              | 94         |
|       |                                                                                                                           |       |
| Part III   |                                                                                                                           |
|       | Item 10.     Directors, Executive Officers and Corporate Governance                                   | 96         |
|       |                                                                                                                           |       |
|       | Item 11.     Executive Compensation                                                                   | 96         |
|       |                                                                                                                           |       |
|       | Item 12.     Security Ownership of Certain Beneficial Owners and Management and                       |       |
|       | Related Shareholder Matters                                                                                                    | 96         |
|       |                                                                                                                           |       |
|       | Item 13.     Certain Relationships and Related Transactions, and Director Independence                | 97         |
|       |                                                                                                                           |       |
|       | Item 14.     Principal Accounting Fees and Services                                                   | 97         |
|       |                                                                                                                           |       |
| Part IV    |                                                                                                                           |
|       | Item 15.     Exhibits, Financial Statement Schedules                                                  | 98         |
|       |                                                                                                                           |       |
| Signatures | 103                                                                                                                            |

----

----

|        |              |                           |            |
|--------|--------------|---------------------------|------------|
|   |         |                      | Year       |
|   |         |                      | Operations |
|   | Region       | Market/Division           | Commenced  |
|   | Midwest      | Columbus, Ohio            | 1976       |
|   | Midwest      | Cincinnati, Ohio          | 1988       |
|   | Midwest      | Indianapolis, Indiana     | 1988       |
|   | Midwest      | Chicago, Illinois         | 2007       |
|   | Southern     | Tampa, Florida            | 1981       |
|   | Southern     | Orlando, Florida          | 1984       |
|   | Southern     | Houston, Texas            | 2010       |
|   | Mid-Atlantic | Charlotte, North Carolina | 1985       |
|   | Mid-Atlantic | Raleigh, North Carolina   | 1986       |
|   | Mid-Atlantic | Washington, D.C.          | 1991       |

|                                |                                     |
|--------------------------------|-------------------------------------|
| •     | Maintaining a strong balance sheet; |

|                                |                                                                      |
|--------------------------------|----------------------------------------------------------------------|
| •     | emphasizing customer service, product design, and premier locations; |

|                                |                                                                                  |
|--------------------------------|----------------------------------------------------------------------------------|
| •     | improving affordability through design changes and other cost reduction efforts; |

|                                |                                                                |
|--------------------------------|----------------------------------------------------------------|
| •     | strategically investing in new communities and/or markets; and |

|                                |                                               |
|--------------------------------|-----------------------------------------------|
| •     | obtaining meaningful presence in our markets. |

----

----

----

----

----

|              |            |             |             |            |            |        |        |        |        |       |        |        |       |        |        |        |        |        |
|--------------|------------|-------------|-------------|------------|------------|--------|--------|--------|--------|-------|--------|--------|-------|--------|--------|--------|--------|--------|
|         | Lots Owned |        |        |       |       |   |
|         | Finished   | Lots Under  | Undeveloped | Total Lots | Lots Under |   |   |
| Region       | Lots       | Development | Lots        | Owned      | Contract   | Total  |
| Midwest      | 1,462      |        |        | 256        |       |   | 2,437  |   |   | 4,155 |   |   | 1,204 |   |   | 5,359  |   |   |
| Southern     | 768        |        |        | 175        |       |   | 470    |   |   | 1,413 |   |   | 323   |   |   | 1,736  |   |   |
| Mid-Atlantic | 778        |        |        | 384        |       |   | 881    |   |   | 2,043 |   |   | 1,032 |   |   | 3,075  |   |   |
| Total        | 3,008      |        |        | 815        |       |   | 3,788  |   |   | 7,611 |   |   | 2,559 |   |   | 10,170 |   |   |

|                                |                                                   |
|--------------------------------|---------------------------------------------------|
| •     | Establish strategy, goals and operating policies; |

|                                |                                                                                      |
|--------------------------------|--------------------------------------------------------------------------------------|
| •     | ensure brand integrity and consistency across all local and regional communications; |

|                                |                                                       |
|--------------------------------|-------------------------------------------------------|
| •     | monitor and manage the performance of our operations; |

|                                |                             |
|--------------------------------|-----------------------------|
| •     | allocate capital resources; |

|                                |                                                                                                                                 |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------|
| •     | provide financing and perform all cash management functions for the Company, as well as maintain our relationship with lenders; |

|                                |                                                                 |
|--------------------------------|-----------------------------------------------------------------|
| •     | maintain centralized information and communication systems; and |

|                                |                                                                        |
|--------------------------------|------------------------------------------------------------------------|
| •     | maintain centralized financial reporting and internal audit functions. |

----

----

----

----

----

|                                |                                                       |
|--------------------------------|-------------------------------------------------------|
| •     | Employment levels and job and personal income growth; |

|                                |                                                          |
|--------------------------------|----------------------------------------------------------|
| •     | availability of and pricing of financing for homebuyers; |

|                                |                                     |
|--------------------------------|-------------------------------------|
| •     | short and long-term interest rates; |

|                                |                                                                                       |
|--------------------------------|---------------------------------------------------------------------------------------|
| •     | overall consumer confidence and the confidence of potential homebuyers in particular; |

|                                |                     |
|--------------------------------|---------------------|
| •     | demographic trends; |

|                                |                                                                                                                      |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------|
| •     | housing demand from population growth, household formation and other demographic changes, among other factors;  |

|                                |                                                                    |
|--------------------------------|--------------------------------------------------------------------|
| •     | U.S. and global financial system and credit market stability; |

|                                |                                                                                                                                                  |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | private party and governmental residential consumer mortgage loan programs, and federal and state regulation of lending and appraisal practices; |

|                                |                                                                                                                                                                                |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | federal and state personal income tax rates and provisions, including provisions for the deduction of residential consumer mortgage loan interest payments and other expenses; |

|                                |                                                                                                                                                                                                                                     |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | the supply of and prices for available new or existing homes (including lender-owned homes acquired through foreclosures and short sales) and other housing alternatives, such as apartments and other residential rental property; |

|                                |                                                                                                                                                                                           |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | homebuyer interest in our current or new product designs and community locations, and general consumer interest in purchasing a home compared to choosing other housing alternatives; and |

|                                |                    |
|--------------------------------|--------------------|
| •     | real estate taxes. |

----

----

----

|                                |                                                             |
|--------------------------------|-------------------------------------------------------------|
| •     | Difficulty in acquiring suitable land at acceptable prices; |

|                                |                       |
|--------------------------------|-----------------------|
| •     | lower selling prices; |

|                                |                               |
|--------------------------------|-------------------------------|
| •     | increased selling incentives; |

|                                |              |
|--------------------------------|--------------|
| •     | lower sales; |

|                                |                       |
|--------------------------------|-----------------------|
| •     | lower profit margins; |

|                                |                                            |
|--------------------------------|--------------------------------------------|
| •     | impairments in the value of inventory; and |

|                                |                         |
|--------------------------------|-------------------------|
| •     | delays in construction. |

----

----

|                                |                                                                                                                                                                                                                                      |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | a significant portion of our cash flow may be required to pay principal and interest on our indebtedness, which could          reduce the funds available for working capital, capital expenditures, acquisitions or other purposes; |

|                                |                                                                                                                     |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------|
| •     | borrowings under the Credit Facility and the MIF Credit Agreement bear, and borrowings under any new facility could |

|                                |                                                                                                                            |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------|
| •     | the terms of our indebtedness could limit our ability to borrow additional funds or sell assets to raise funds, if needed, |

|                                |                                                                                                                                                                                                                                     |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | our debt level and the various covenants contained in the Credit Facility and the documents governing our other          indebtedness could place us at a relative competitive disadvantage as compared to some of our competitors. |

----

----

----

|                                  |                           |
|----------------------------------|---------------------------|
| Item 1B.     | UNRESOLVED STAFF COMMENTS |

|                                 |            |
|---------------------------------|------------|
| Item 2.     | PROPERTIES |

|                                 |                   |
|---------------------------------|-------------------|
| Item 3.     | LEGAL PROCEEDINGS |

----

----

|                                 |                                                                                                                    |
|---------------------------------|--------------------------------------------------------------------------------------------------------------------|
| Item 5.     | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |

|                |        |        |        |        |        |        |        |        |        |        |
|----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|           | 2010   |   | HIGH   |   | LOW    |   |
| First quarter  |   |   | $      | 15.54  |   |   | $      | 9.74   |   |   |
| Second quarter |   |   | 17.98  |   |   | 9.60   |   |   |
| Third quarter  |   |   | 11.49  |   |   | 8.86   |   |   |
| Fourth quarter |   |   | 16.30  |   |   | 10.05  |   |   |
|           | 2009   |   |   |   |   |   |
| First quarter  |   |   | $      | 12.10  |   |   | $      | 4.92   |   |   |
| Second quarter |   |   | 18.42  |   |   | 6.80   |   |   |
| Third quarter  |   |   | 17.67  |   |   | 7.87   |   |   |
| Fourth quarter |   |   | 15.66  |   |   | 9.43   |   |   |

----

|                                |               |            |            |            |            |            |
|--------------------------------|---------------|------------|------------|------------|------------|------------|
|                           | Period Ending |
| Index                          | 12/31/2005    | 12/31/2006 | 12/31/2007 | 12/31/2008 | 12/31/2009 | 12/31/2010 |
| M/I Homes, Inc.                | 100.00        | 94.26      | 26.07      | 26.25      | 25.88      | 38.31      |
| S&P 500                    | 100.00        | 115.79     | 122.16     | 76.96      | 97.33      | 111.99     |
| S&P 500 Homebuilding Index | 100.00        | 80.00      | 32.89      | 20.09      | 23.77      | 25.22      |

|                                 |                                 |                           |                                                                        |                                                                              |        |        |         |        |        |           |        |        |
|---------------------------------|---------------------------------|---------------------------|------------------------------------------------------------------------|------------------------------------------------------------------------------|--------|--------|---------|--------|--------|-----------|--------|--------|
|                            | Total Number of SharesPurchased | AveragePricePaidper Share | Total Number ofSharesPurchasedas Part ofPubliclyAnnounced Program | ApproximateDollar Value ofShares that MayYet BePurchasedUnder theProgram (a) |
| October 1 to October 31, 2010   | —                         |                      |                                                                   | —                                                                      |   |   | — |   |   | 6,715,000 |   |   |
| November 1 to November 30,10    | —                         |                      |                                                                   | —                                                                      |   |   | — |   |   | 6,715,000 |   |   |
| December 1 to December 31, 2010 | —                         |                      |                                                                   | —                                                                      |   |   | — |   |   | 6,715,000 |   |   |
| Total                           | —                         |                      |                                                                   | —                                                                      |   |   | — |   |   | 6,715,000 |   |   |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)     | Through December 31, 2010, the Company had purchased a total of 473,300 common shares, at an average price of $38.63 per share, pursuant to the Board-approved $25 million repurchase program that was publicly announced on November 10, 2005 and expired on November 8, 2010.  At the time of its expiration, the Company had approximately $6.7 million remaining available for repurchase under the $25 million repurchase program.  |

----

|                                                          |        |         |        |        |         |        |          |          |        |         |           |        |        |           |        |
|----------------------------------------------------------|--------|---------|--------|--------|---------|--------|----------|----------|--------|---------|-----------|--------|--------|-----------|--------|
| (In thousands, except per share amounts)                 | 2010   | 2009    | 2008   | 2007   | 2006    |
| Income Statement (Year Ended December 31):               |   |    |   |   |    |
| Revenue                                                  | $      | 616,377 |   | $      | 569,949 |   | $        | 607,659  |   | $       | 1,016,460 |   | $      | 1,274,145 |   |
| Gross margin (b) (c)                                     | $      | 92,431  |   | $      | 19,539  |   | $        | (77,805  | )      | $       | 35,487    |   | $      | 247,719   |   |
| Net (loss) income from continuing operations (b) (c) (d) | $      | (26,269 | )      | $      | (62,109 | )      | (245,415 | )        | $      | (92,480 | )         | $      | 29,297 |      |
| Discontinued operation, net of tax (a)                   | $      | — |   | $      | — |   | $        | (33      | )      | $       | (35,646   | )      | $      | 9,578     |   |
| Net (loss) income (b) (c) (d)                            | $      | (26,269 | )      | $      | (62,109 | )      | $        | (245,448 | )      | $       | (128,126  | )      | $      | 38,875    |   |
| Preferred dividends                                      | $      | — |   | $      | — |   | $        | 4,875    |   | $       | 7,313     |   | $      | —   |   |
| Net (loss) income to common shareholders (b) (c) (d)     | $      | (26,269 | )      | $      | (62,109 | )      | $        | (250,323 | )      | $       | (135,439  | )      | $      | 38,875    |   |
| (Loss) earnings per share to common shareholders:        |   |    |   |   |    |   |     |     |   |    |
| Basic: (b) (c) (d)                                       |   |    |   |   |    |   |     |     |   |    |
| Continuing operations                                    | $      | (1.42   | )      | $      | (3.71   | )      | $        | (17.86   | )      | $       | (7.14     | )      | $      | 2.10      |   |
| Discontinued operation                                   | $      | — |   | $      | — |   | $        | —  |   | $       | (2.55     | )      | $      | 0.68      |   |
| Total                                                    | $      | (1.42   | )      | $      | (3.71   | )      | $        | (17.86   | )      | $       | (9.69     | )      | $      | 2.78      |   |
| Diluted: (b) (c) (d)                                     |   |    |   |   |    |   |     |     |   |    |
| Continuing operations                                    | $      | (1.42   | )      | $      | (3.71   | )      | $        | (17.86   | )      | $       | (7.14     | )      | $      | 2.07      |   |
| Discontinued operation                                   | $      | — |   | $      | — |   | $        | —  |   | $       | (2.55     | )      | $      | 0.67      |   |
| Total                                                    | $      | (1.42   | )      | $      | (3.71   | )      | $        | (17.86   | )      | $       | (9.69     | )      | $      | 2.74      |   |
| Weighted average  shares outstanding:          |   |    |   |   |    |   |     |     |   |    |
| Basic                                                    | 18,523 |    | 16,730 |   | 14,016  |   | 13,977   |     | 13,970 |    |
| Diluted                                                  | 18,523 |    | 16,730 |   | 14,016  |   | 13,977   |     | 14,168 |    |
| Dividends per common share                               | $      | — |   | $      | — |   | $        | 0.05     |   | $       | 0.10      |   | $      | 0.10      |   |
| Balance Sheet (December 31):                             |   |    |   |   |    |   |     |     |   |    |
| Inventory                                                | $      | 450,936 |   | $      | 420,289 |   | $        | 516,029  |   | $       | 797,329   |   | $      | 1,092,739 |   |
| Total assets (d)                                         | $      | 661,894 |   | $      | 663,828 |   | $        | 693,288  |   | $       | 1,117,645 |   | $      | 1,477,079 |   |
| Notes payable banks – homebuilding operations      | $      | — |   | $      | — |   | $        | —  |   | $       | 115,000   |   | $      | 410,000   |   |
| Note payable bank – financial services operations  | $      | 32,197  |   | $      | 24,142  |   | $        | 35,078   |   | $       | 40,400    |   | $      | 29,900    |   |
| Notes payable banks - other                              | $      | 5,853   |   | $      | 6,160   |   | $        | 16,300   |   | $       | 6,703     |   | $      | 6,944     |   |
| Senior Notes – net of discount                     | $      | 238,610 |   | $      | 199,424 |   | $        | 199,168  |   | $       | 198,912   |   | $      | 198,656   |   |
| Shareholders’ equity (b) (c) (d)                   | $      | 303,491 |   | $      | 326,763 |   | $        | 333,061  |   | $       | 581,345   |   | $      | 617,052   |   |

|                             |                                                                                                                                                                                                                                                                          |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)     | In December 2007, we sold substantially all of our assets in our West Palm Beach, Florida market and announced our exit from this market.  The results of operations for this market for all years presented have been reclassified as discontinued operation. |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)     | 2010, 2009, 2008, 2007 and 2006 include the impact of charges relating to the impairment of inventory and investment in Unconsolidated LLCs, reducing gross margin by $12.5 million, $55.4 million, $153.3 million, $148.4 million and $67.2, respectively.  Those charges, along with the write-off of land deposits, intangibles and pre-acquisition costs, increased net loss from continuing operations  by $8.2 million, $35.4 million, $98.3 million, $96.9 million and $46.7 million and loss per diluted share by $0.44, $1.31, $7.00, $6.71 and $3.29 for the years ended December 31, 2010, 2009, 2008, 2007 and 2006, respectively. |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)     | 2010 and 2009 includes the impact of charges and settlements related to the repair of certain homes in Florida where certain of our subcontractors had purchased imported drywall that may be responsible for accelerated corrosion of certain metals in the home, which decreased net loss from continuing operations by $1.1 million, or $0.06 per share, in 2010, and increased net loss from continuing operations by $7.5 million, or $0.46 per share, in 2009. |

|                             |                                                                                                                                                                                                             |
|-----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d)     | 2010, 2009 and 2008 net loss also reflects an $10.8 million, $8.2 million and $108.9 million, respectively, valuation allowance for deferred tax assets, or $0.58, $0.73 and $7.75 per share, respectively. |

----

|                                 |                                                                                             |
|---------------------------------|---------------------------------------------------------------------------------------------|
| Item 7.     | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |

|                                |                                                     |
|--------------------------------|-----------------------------------------------------|
| •     | Information Relating to Forward-Looking Statements; |

|                                |                                                                |
|--------------------------------|----------------------------------------------------------------|
| •     | Our Application of Critical Accounting Estimates and Policies; |

|                                |                            |
|--------------------------------|----------------------------|
| •     | Our Results of Operations; |

|                                |                                                    |
|--------------------------------|----------------------------------------------------|
| •     | Discussion of Our Liquidity and Capital Resources; |

|                                |                                         |
|--------------------------------|-----------------------------------------|
| •     | Summary of Our Contractual Obligations; |

|                                |                                                                      |
|--------------------------------|----------------------------------------------------------------------|
| •     | Discussion of Our Utilization of Off-Balance Sheet Arrangements; and |

|                                |                                         |
|--------------------------------|-----------------------------------------|
| •     | Impact of Interest Rates and Inflation. |

----

|                                |                                                                                                                  |
|--------------------------------|------------------------------------------------------------------------------------------------------------------|
| •     | Historical project results such as average sales price and sales pace, if closings have occurred in the project; |

|                                |                                                                              |
|--------------------------------|------------------------------------------------------------------------------|
| •     | competitors' market and/or community presence and their competitive actions; |

|                                |                                                                                               |
|--------------------------------|-----------------------------------------------------------------------------------------------|
| •     | project specific attributes such as location desirability and uniqueness of product offering; |

----

|                                |                                                                                        |
|--------------------------------|----------------------------------------------------------------------------------------|
| •     | potential for alternative product offerings to respond to local market conditions; and |

|                                |                                                                               |
|--------------------------------|-------------------------------------------------------------------------------|
| •     | current economic and demographic conditions and related trends and forecasts. |

----

----

|                                |                                            |
|--------------------------------|--------------------------------------------|
| •     | Home Builder’s Limited Warranty; and |

|                                |                                                                                                   |
|--------------------------------|---------------------------------------------------------------------------------------------------|
| •     | 30-year transferable structural warranty – effective for homes closed after April 24, 1998. |

----

|                                |                                                                                                                                             |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Future reversals of existing taxable temporary differences (i.e., offset gross deferred tax assets against gross deferred tax liabilities); |

|                                |                                          |
|--------------------------------|------------------------------------------|
| •     | taxable income in prior carryback years; |

|                                |                              |
|--------------------------------|------------------------------|
| •     | tax planning strategies; and |

|                                |                                                                                        |
|--------------------------------|----------------------------------------------------------------------------------------|
| •     | future taxable income, exclusive of reversing temporary differences and carryforwards. |

|                                |                                                                                                                                                                                                                      |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | A strong earnings history exclusive of the loss that created the deductible temporary differences, coupled with evidence indicating that the loss is the result of an aberration rather than a continuing condition; |

|                                |                                                                                                                                                        |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | an excess of appreciated asset value over the tax basis of a company’s net assets in an amount sufficient to realize the deferred tax asset; and |

|                                |                                                                                                                                                          |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | existing backlog that will produce more than enough taxable income to realize the deferred tax asset based on existing sales prices and cost structures. |

|                                |                                                                                                                                                |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | The existence of “cumulative losses” (defined as a pre-tax cumulative loss for the business cycle – in our case four years); |

|                                |                                                                                     |
|--------------------------------|-------------------------------------------------------------------------------------|
| •     | an expectation of being in a cumulative loss position in a future reporting period; |

|                                |                                                                                                          |
|--------------------------------|----------------------------------------------------------------------------------------------------------|
| •     | a carryback or carryforward period that is so brief that it would limit the realization of tax benefits; |

|                                |                                                                              |
|--------------------------------|------------------------------------------------------------------------------|
| •     | a history of operating loss or tax credit carryforwards expiring unused; and |

|                                |                                                                                                                                          |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|
| •     | unsettled circumstances that, if unfavorably resolved, would adversely affect future operations and profit levels on a continuing basis. |

----

|                                |                                   |
|--------------------------------|-----------------------------------|
| •     | Additional inventory impairments; |

|                                |                                      |
|--------------------------------|--------------------------------------|
| •     | additional pre-tax operating losses; |

|                                |                                                                                                                     |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------|
| •     | the utilization of tax planning strategies that could accelerate the realization of certain deferred tax assets; or |

|                                |                              |
|--------------------------------|------------------------------|
| •     | changes in relevant tax law. |

|        |                       |                    |                           |
|--------|-----------------------|--------------------|---------------------------|
|   | Midwest               | Southern           | Mid-Atlantic              |
|   | Columbus, Ohio        | Tampa, Florida     | Washington, D.C.          |
|   | Cincinnati, Ohio      | Orlando, Florida   | Charlotte, North Carolina |
|   | Indianapolis, Indiana | Houston, Texas (1) | Raleigh, North Carolina   |
|   | Chicago, Illinois     |               |                      |

----

|                                |                                                                                                                                                                                                                       |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Improving and refining our product offerings, including the eco series, to compete with resale homes, meet the affordability demands and energy concerns of our core customers, and reduce our overall cost to build; |

|                                |                                                                                                                                                 |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | aligning our overhead to current market conditions while taking steps to develop a meaningful presence in each of our ten homebuilding markets; |

|                                |                                                                                |
|--------------------------------|--------------------------------------------------------------------------------|
| •     | a consistent  focus on controlling material, subcontractor and overhead costs; |

|                                |                                                                                                     |
|--------------------------------|-----------------------------------------------------------------------------------------------------|
| •     | improving our operating processes, particularly our customer facing ones and our build cycle times; |

|                                |                                                                                                                  |
|--------------------------------|------------------------------------------------------------------------------------------------------------------|
| •     | maintaining a strong and liquid balance sheet to allow us to make opportunistic investments in our business; and |

|                                |                                                                                    |
|--------------------------------|------------------------------------------------------------------------------------|
| •     | acquiring attractively-priced new land interests meeting our investment standards. |

----

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | For the year ended December 31, 2010, total revenue increased $46.3 million (8%) to $616.4 million as compared to $569.9 million for the year ended December 31, 2009.  This increase was primarily attributable to an increase  in the average sales price of homes delivered from $231,000 in 2009 to $247,000 in 2010, as well as an increase in homes delivered from 2,409 in 2009 to 2,434 in 2010. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Loss from continuing operations before income taxes for the year ended December 31, 2010 decreased by $65.6 million (71%), from $93.0 million in 2009 to $27.4 million in 2010.  The $65.6 million decrease was primarily comprised of lower impairment charges, higher gross margins and lower general and administrative expenses, which were offset in part by an $8.4 million loss on the early extinguishment of a portion of our 2012 Senior Notes, and higher volume related selling costs. During 2010, the Company incurred charges totaling $12.6 million related to the impairment of inventory and investment in Unconsolidated LLCs, and $0.6 million of abandoned land transaction costs, compared to $57.1 million of like charges during 2009. Adjusted operating gross margin for 2010 was 16.7% compared to 2009's 15.3%. This increase was primarily due to the higher gross margin contribution from our new communities and continued efforts to reduce construction costs and deliver more homes that have been value-engineered. General and administrative expenses decreased $5.2 million (9%) in 2010 compared to 2009 primarily due to: (1) a decrease of $2.7 million in land related expenses, including abandoned land transaction costs; (2) a $2.2 million reduction in miscellaneous other expenses; and (3) a decrease of $0.8 million in professional fees. Partially offsetting these decreases was an increase of $0.5 million in architectural expenses for designs in our new value-focused communities. Selling expenses increased by $4.1 million (9%) in 2010 when compared to 2009, primarily due to a $2.6 million increase in variable selling expenses related to increased volume, a $0.8 million increase in payroll expenses, and a $0.7 million increase in costs associated with the opening of new communities. The Company had an adjusted pre-tax loss from continuing operations of $7.7 million 2010, which was $11.6 million better than 2009's adjusted pre-tax loss from continuing operations of $19.3 million. Please see the table set forth below which reconciles the non-GAAP financial measures of adjusted operating gross margin and adjusted pre-tax loss from continuing operations to their respective most directly comparable GAAP financial measures, gross margin, and loss from continuing operations before income taxes. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | New contracts for 2010 were 2,316, down 7% compared to 2,493 in 2009.  For the year ended December 31, 2010, our cancellation rate was 20% compared to 19% in 2009.  By region, our cancellation rates in 2010 versus 2009 were as follows: Midwest – 24% in 2010 and 22% in 2009; Southern – 13% in 2010 and 16% in 2009; and Mid-Atlantic – 15% in 2010 and 16% in 2009. Our homes in backlog decreased 18%, from 650 units at December 31, 2009 to 532 units at December 31, 2010 as a result of the decline in our new contracts in the second half of 2010. |

|                                |                                                                                                                                                                                                                                                                              |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Our mortgage company’s capture rate decreased from 87% for the year ended December 31, 2009 to 84% for the year ended December 31, 2010.  Capture rate is influenced by financing availability and can fluctuate up or down from period to period. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | As a result of our net loss during 2010, we generated deferred tax assets of $10.8 million and recorded a non-cash valuation allowance against the entire amount of deferred tax assets generated. Due to tax legislation passed in November 2009, we received a $25.9 million federal tax refund in the first quarter of 2010 relating to net operating losses that we carried back from 2008 to 2003.  We also received a $3.1 million tax refund in the fourth quarter of 2010 related to the ten year carryback of certain 2009 expenses to 1999. |

----

|                                                     |                         |         |        |        |         |        |   |          |        |
|-----------------------------------------------------|-------------------------|---------|--------|--------|---------|--------|---|----------|--------|
|                                                | Year Ended December 31, |
|                                                | 2010                    | 2009    | 2008   |
| Gross margin                                        | $                       | 92,431  |   | $      | 19,539  |   | $ | (77,805  | )      |
| Add:                                                |                    |    |   |   |    |   |
| Impairments                                         | 12,538                  |    | 55,421 |   | 153,300 |   |
| Imported drywall charges                            | (1,810                  | )       | 12,150 |   | — |   |
| Adjusted operating gross margin                     | $                       | 103,159 |   | $      | 87,110  |   | $ | 75,495   |   |
| Loss from continuing operations before income taxes | $                       | (27,404 | )      | $      | (92,989 | )      | $ | (215,124 | )      |
| Add:                                                |                    |    |   |   |    |   |
| Impairments and abandonments                        | 13,158                  |    | 57,077 |   | 158,612 |   |
| Imported drywall charges                            | (1,810                  | )       | 12,150 |   | — |   |
| Other expense (income) (a)                          | 8,378                   |    | 941    |   | (5,555  | )      |
| Restructuring/other (b)                             | —                 |    | 3,561  |   | 7,859   |   |
| Adjusted pre-tax loss from continuing operations    | $                       | (7,678  | )      | $      | (19,260 | )      | $ | (54,208  | )      |

|                             |                                                                                                                                                                                                                                                                                                |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)     | Other (loss) income is comprised of the loss on the early extinguishment of debt in the fourth quarter of 2010, the sale of the Company's airplane during the first quarter of 2009, and the gain recognized on the exchange of the Company’s airplane during the first quarter of 2008. |

|                             |                                                                             |
|-----------------------------|-----------------------------------------------------------------------------|
| (b)     | Restructuring/other is comprised of severance expense and bad debt expense. |

----

|                                                                  |             |         |         |        |         |        |   |          |        |
|------------------------------------------------------------------|-------------|---------|---------|--------|---------|--------|---|----------|--------|
|                                                             | Years Ended |
|                                                             | 2010        | 2009    | 2008    |
| Revenue:                                                         |        |    |    |
| Midwest homebuilding                                             | $           | 295,096 |    | $      | 258,910 |   | $ | 232,715  |   |
| Southern homebuilding                                            | 89,896      |    | 95,615  |   | 151,643 |   |
| Mid-Atlantic homebuilding                                        | 217,148     |    | 201,366 |   | 202,038 |   |
| Other homebuilding – unallocated (a)                       | —     |    | — |   | 7,131   |   |
| Financial services                                               | 14,237      |    | 14,058  |   | 14,132  |   |
| Total revenue                                                    | $           | 616,377 |    | $      | 569,949 |   | $ | 607,659  |   |
| Operating (loss) income:                                         |        |    |    |   |    |   |
| Midwest homebuilding (b)                                         | $           | 3,294   |    | $      | (17,590 | )      | $ | (73,073  | )      |
| Southern homebuilding (b)                                        | (3,593      | )       | (41,092 | )      | (71,864 | )      |
| Mid-Atlantic homebuilding (b)                                    | 7,004       |    | (7,500  | )      | (41,491 | )      |
| Other homebuilding – unallocated (a)                       | —     |    | — |   | 503     |   |
| Financial services                                               | 6,508       |    | 6,533   |   | 6,010   |   |
| Less: Corporate selling, general and administrative expenses (c) | (22,824     | )       | (23,932 | )      | (29,567 | )      |
| Total operating loss                                             | $           | (9,611  | )       | $      | (83,581 | )      | $ | (209,482 | )      |
| Interest expense:                                                |        |    |    |   |    |   |
| Midwest homebuilding                                             | $           | 3,689   |    | $      | 4,043   |   | $ | 5,197    |   |
| Southern homebuilding                                            | 1,520       |    | 1,690   |   | 2,335   |   |
| Mid-Atlantic homebuilding                                        | 3,262       |    | 2,235   |   | 3,209   |   |
| Financial services                                               | 944         |    | 499     |   | 456     |   |
| Total interest expense                                           | $           | 9,415   |    | $      | 8,467   |   | $ | 11,197   |   |
| Other (loss) income (d)                                          | (8,378      | )       | (941    | )      | 5,555   |   |
| Loss from continuing operations before income taxes              | $           | (27,404 | )       | $      | (92,989 | )      | $ | (215,124 | )      |

|                                         |         |         |         |        |         |        |   |         |        |
|-----------------------------------------|---------|---------|---------|--------|---------|--------|---|---------|--------|
| Assets:                                 |    |    |    |   |    |   |
| Midwest homebuilding                    | $       | 224,302 |    | $      | 224,059 |   | $ | 242,066 |   |
| Southern homebuilding                   | 76,116  |    | 80,797  |   | 121,587 |   |
| Mid-Atlantic homebuilding               | 172,297 |    | 141,998 |   | 185,268 |   |
| Financial services                      | 54,694  |    | 52,092  |   | 60,992  |   |
| Corporate                               | 134,485 |    | 164,882 |   | 83,375  |   |
| Total assets                            | $       | 661,894 |    | $      | 663,828 |   | $ | 693,288 |   |
| Investment in Unconsolidated LLCs:      |    |    |    |   |    |   |
| Midwest homebuilding                    | $       | 5,929   |    | $      | 6,051   |   | $ | 6,359   |   |
| Southern homebuilding                   | 4,660   |    | 4,248   |   | 6,771   |   |
| Total investment in Unconsolidated LLCs | $       | 10,589  |    | $      | 10,299  |   | $ | 13,130  |   |
| Depreciation and amortization:          |    |    |    |   |    |   |
| Midwest homebuilding                    | $       | 1,036   |    | $      | 659     |   | $ | 336     |   |
| Southern homebuilding                   | 498     |    | 728     |   | 1,288   |   |
| Mid-Atlantic homebuilding               | 763     |    | 959     |   | 1,028   |   |
| Financial services                      | 390     |    | 395     |   | 471     |   |
| Corporate                               | 2,507   |    | 5,130   |   | 4,631   |   |
| Total depreciation and amortization     | $       | 5,194   |    | $      | 7,871   |   | $ | 7,754   |   |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)     | Other homebuilding – unallocated consists of the net impact in the period due to timing of homes delivered with low down-payment loans (buyers put less than 5% down) funded by the Company’s financial services operations not yet sold to a third party.  In accordance with applicable accounting rules, recognition of such revenue must be deferred until the related loan is sold to a third party.  Refer to the Revenue Recognition policy described in our Application of Critical Accounting Estimates and Policies in Management’s Discussion and Analysis of Financial Condition and Results of Operations for further discussion. |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)     | The years ended December 31, 2010, 2009 and 2008 include the impact of charges relating to the impairment of inventory and investment in Unconsolidated LLCs and the write-off of land deposits and pre-acquisition costs of $13.2 million, $57.1 million and $158.6 million, respectively.  For 2010, 2009 and 2008, these charges reduced operating income by $3.9 million, $20.4 million and $56.3 million in the Midwest region, $4.5 million, $24.1 million and $66.9 million in the Southern region, and $4.8 million, $12.6 million and $35.4 million in the Mid-Atlantic region, respectively. |

|                             |                                                                                                                                                                                                                                                            |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)     | The years ended December 31, 2009 and 2008 include the impact of severance charges of $1.0 million and $3.3 million, respectively.  The year ended December 31, 2008 also includes charges of $3.3 million for corporate asset impairments. |

----

|                             |                                                                                                                                                                                                                                                                                                |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d)     | Other (loss) income is comprised of the loss on the early extinguishment of debt in the fourth quarter of 2010, the sale of the Company's airplane during the first quarter of 2009, and the gain recognized on the exchange of the Company’s airplane during the first quarter of 2008. |

|                                    |                      |          |              |                                               |         |        |         |         |         |        |         |        |   |         |        |
|------------------------------------|----------------------|----------|--------------|-----------------------------------------------|---------|--------|---------|---------|---------|--------|---------|--------|---|---------|--------|
|                               | At December 31, 2010 |
| (In thousands)                     | Midwest              | Southern | Mid-Atlantic | Corporate, Financial Services and Unallocated | Total   |
| Land purchase deposits             | $                    | 1,027    |         | $                                             | 85      |   | $       | 853     |    | $      | — |   | $ | 1,965   |   |
| Inventory (a)                      | 212,159              |     | 69,652       |                                          | 167,161 |   | — |    | 448,972 |   |
| Investments in Unconsolidated LLCs | 5,929                |     | 4,660        |                                          | — |   | — |    | 10,589  |   |
| Other assets                       | 5,187                |     | 1,719        |                                          | 4,283   |   | 189,179 |    | 200,368 |   |
| Total assets                       | $                    | 224,302  |         | $                                             | 76,116  |   | $       | 172,297 |    | $      | 189,179 |   | $ | 661,894 |   |

|                                    |                      |          |              |                                               |         |        |         |         |         |        |         |        |   |         |        |
|------------------------------------|----------------------|----------|--------------|-----------------------------------------------|---------|--------|---------|---------|---------|--------|---------|--------|---|---------|--------|
|                               | At December 31, 2009 |
| (In thousands)                     | Midwest              | Southern | Mid-Atlantic | Corporate, Financial Services and Unallocated | Total   |
| Land purchase deposits             | $                    | 1,001    |         | $                                             | 50      |   | $       | 285     |    | $      | — |   | $ | 1,336   |   |
| Inventory (a)                      | 213,592              |     | 70,117       |                                          | 135,244 |   | — |    | 418,953 |   |
| Investments in Unconsolidated LLCs | 6,051                |     | 4,248        |                                          | — |   | — |    | 10,299  |   |
| Other assets                       | 3,415                |     | 6,382        |                                          | 6,469   |   | 216,974 |    | 233,240 |   |
| Total assets                       | $                    | 224,059  |         | $                                             | 80,797  |   | $       | 141,998 |    | $      | 216,974 |   | $ | 663,828 |   |

|                             |                                                                                                                                                                                                                                         |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)     | Inventory includes single-family lots, land and land development costs; land held for sale; homes under construction; model homes and furnishings; community development district infrastructure; and consolidated inventory not owned. |

|                          |                    |               |          |           |         |        |        |         |        |   |         |        |
|--------------------------|--------------------|---------------|----------|-----------|---------|--------|--------|---------|--------|---|---------|--------|
|                     | Three Months Ended |
|                     | December 31,       | September 30, | June 30, | March 31, |
| (Dollars in thousands)   | 2010               | 2010          | 2010     | 2010      |
| Revenue                  | $                  | 164,975       |     | $         | 135,609 |   | $      | 196,404 |   | $ | 119,389 |   |
| Unit data:               |               |          |     |      |    |   |   |    |
| New contracts            | 460                |          | 489      |      | 602     |   | 765    |    |
| Homes delivered          | 650                |          | 515      |      | 790     |   | 479    |    |
| Backlog at end of period | 532                |          | 722      |      | 748     |   | 936    |    |

|                          |                    |               |          |           |         |        |        |         |        |   |        |        |
|--------------------------|--------------------|---------------|----------|-----------|---------|--------|--------|---------|--------|---|--------|--------|
|                     | Three Months Ended |
|                     | December 31,       | September 30, | June 30, | March 31, |
| (Dollars in thousands)   | 2009               | 2009          | 2009     | 2009      |
| Revenue                  | $                  | 204,916       |     | $         | 152,738 |   | $      | 116,146 |   | $ | 96,149 |   |
| Unit data:               |               |          |     |      |    |   |   |    |
| New contracts            | 448                |          | 619      |      | 759     |   | 667    |    |
| Homes delivered          | 858                |          | 665      |      | 492     |   | 394    |    |
| Backlog at end of period | 650                |          | 1,060    |      | 1,106   |   | 839    |    |

----

|                                           |                         |         |        |        |         |        |   |          |        |
|-------------------------------------------|-------------------------|---------|--------|--------|---------|--------|---|----------|--------|
|                                      | Year Ended December 31, |
| (Dollars in thousands)                    | 2010                    | 2009    | 2008   |
| Midwest Region                            |                    |    |   |
| Homes delivered                           | 1,296                   |    | 1,282  |   | 937     |   |
| Average sales price per home delivered    | $                       | 228     |   | $      | 202     |   | $ | 244      |   |
| Revenue homes                             | $                       | 295,096 |   | $      | 258,818 |   | $ | 228,728  |   |
| Revenue third party land sales            | $                       | — |   | $      | 92      |   | $ | 3,987    |   |
| Operating income (loss) homes (a)         | $                       | 3,294   |   | $      | (15,666 | )      | $ | (64,338  | )      |
| Operating loss land (a)                   | $                       | — |   | $      | (1,924  | )      | $ | (8,735   | )      |
| New contracts, net                        | 1,215                   |    | 1,334  |   | 911     |   |
| Backlog at end of period                  | 336                     |    | 417    |   | 365     |   |
| Average sales price of homes in backlog   | $                       | 247     |   | $      | 241     |   | $ | 230      |   |
| Aggregate sales value of homes in backlog | $                       | 83,061  |   | $      | 100,623 |   | $ | 83,807   |   |
| Number of new communities                 | 19                      |    | 14     |   | 4       |   |
| Number of active communities              | 61                      |    | 59     |   | 73      |   |
| Southern Region                           |                    |    |   |   |    |   |
| Homes delivered                           | 429                     |    | 428    |   | 474     |   |
| Average sales price per home delivered    | $                       | 209     |   | $      | 222     |   | $ | 263      |   |
| Revenue homes                             | $                       | 89,053  |   | $      | 94,958  |   | $ | 124,314  |   |
| Revenue third party land sales            | $                       | 843     |   | $      | 657     |   | $ | 27,329   |   |
| Operating loss homes (a)                  | $                       | (3,014  | )      | $      | (39,401 | )      | $ | (47,990  | )      |
| Operating loss land (a)                   | $                       | (579    | )      | $      | (1,691  | )      | $ | (23,874  | )      |
| New contracts, net                        | 461                     |    | 406    |   | 430     |   |
| Backlog at end of period                  | 87                      |    | 55     |   | 77      |   |
| Average sales price of homes in backlog   | $                       | 218     |   | $      | 220     |   | $ | 265      |   |
| Aggregate sales value of homes in backlog | $                       | 19,006  |   | $      | 12,088  |   | $ | 20,430   |   |
| Number of new communities                 | 5                       |    | 2      |   | — |   |
| Number of active communities              | 19                      |    | 21     |   | 25      |   |
| Mid-Atlantic Region                       |                    |    |   |   |    |   |
| Homes delivered                           | 709                     |    | 699    |   | 614     |   |
| Average sales price per home delivered    | $                       | 306     |   | $      | 288     |   | $ | 327      |   |
| Revenue homes                             | $                       | 216,583 |   | $      | 201,366 |   | $ | 200,455  |   |
| Revenue third party land sales            | $                       | 565     |   | $      | — |   | $ | 1,583    |   |
| Operating income (loss) homes (a)         | $                       | 7,068   |   | $      | (5,858  | )      | $ | (41,471  | )      |
| Operating loss land (a)                   | $                       | (64     | )      | $      | (1,642  | )      | $ | (20      | )      |
| New contracts, net                        | 640                     |    | 753    |   | 538     |   |
| Backlog at end of period                  | 109                     |    | 178    |   | 124     |   |
| Average sales price of homes in backlog   | $                       | 304     |   | $      | 359     |   | $ | 285      |   |
| Aggregate sales value of homes in backlog | $                       | 33,179  |   | $      | 63,988  |   | $ | 35,287   |   |
| Number of new communities                 | 17                      |    | 4      |   | 5       |   |
| Number of active communities              | 30                      |    | 21     |   | 30      |   |
| Total Homebuilding Regions                |                    |    |   |   |    |   |
| Homes delivered                           | 2,434                   |    | 2,409  |   | 2,025   |   |
| Average sales price per home delivered    | $                       | 247     |   | $      | 231     |   | $ | 274      |   |
| Revenue homes                             | $                       | 600,732 |   | $      | 555,142 |   | $ | 553,497  |   |
| Revenue third party land sales            | $                       | 1,408   |   | $      | 749     |   | $ | 32,899   |   |
| Operating income (loss) homes (a)         | $                       | 7,348   |   | $      | (60,925 | )      | $ | (153,799 | )      |
| Operating loss land (a)                   | $                       | (643    | )      | $      | (5,257  | )      | $ | (32,629  | )      |
| New contracts, net                        | 2,316                   |    | 2,493  |   | 1,879   |   |
| Backlog at end of period                  | 532                     |    | 650    |   | 566     |   |
| Average sales price of homes in backlog   | $                       | 254     |   | $      | 272     |   | $ | 247      |   |
| Aggregate sales value of homes in backlog | $                       | 135,246 |   | $      | 176,698 |   | $ | 139,524  |   |
| Number of new communities                 | 41                      |    | 20     |   | 9       |   |
| Number of active communities              | 110                     |    | 101    |   | 128     |   |

----

|                                     |                         |         |        |        |         |        |   |         |        |
|-------------------------------------|-------------------------|---------|--------|--------|---------|--------|---|---------|--------|
|                                | Year Ended December 31, |
| (Dollars in thousands)              | 2010                    | 2009    | 2008   |
| Financial Services                  |                    |    |   |   |    |   |
| Number of loans originated          | 1,928                   |    | 2,031  |   | 1,623   |   |
| Value of loans originated           | $                       | 416,498 |   | $      | 420,761 |   | $ | 382,992 |   |
| Revenue                             | $                       | 14,237  |   | $      | 14,058  |   | $ | 14,132  |   |
| General and administrative expenses | $                       | 7,729   |   | $      | 7,525   |   | $ | 8,122   |   |
| Interest expense                    | $                       | 944     |   | $      | 499     |   | $ | 456     |   |
| Income before income taxes          | $                       | 5,564   |   | $      | 6,034   |   | $ | 5,554   |   |

|                             |                                                                                                                                                        |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)     | Amount includes impairment of inventory and investment in Unconsolidated LLCs and abandoned land transaction costs for 2010, 2009 and 2008 as follows: |

|                        |              |        |        |        |         |        |   |         |        |
|------------------------|--------------|--------|--------|--------|---------|--------|---|---------|--------|
|                   | December 31, |
| (Dollars in thousands) | 2010         | 2009   | 2008   |
| Midwest:               |         |   |   |
| Homes                  | $            | 3,863  |   | $      | 18,339  |   | $ | 47,604  |   |
| Land                   | —      |   | 2,016  |   | 8,729   |   |
|                   | 3,863        |   | 20,355 |   | 56,333  |   |
| Southern:              |         |   |   |   |    |   |
| Homes                  | 3,947        |   | 22,242 |   | 42,642  |   |
| Land                   | 587          |   | 1,883  |   | 24,264  |   |
|                   | 4,534        |   | 24,125 |   | 66,906  |   |
| Mid-Atlantic:          |         |   |   |   |    |   |
| Homes                  | 4,673        |   | 10,955 |   | 35,063  |   |
| Land                   | 88           |   | 1,642  |   | 310     |   |
|                   | 4,761        |   | 12,597 |   | 35,373  |   |
| Total                  |         |   |   |   |    |   |
| Homes                  | 12,483       |   | 51,536 |   | 125,309 |   |
| Land                   | 675          |   | 5,541  |   | 33,303  |   |
|                   | $            | 13,158 |   | $      | 57,077  |   | $ | 158,612 |   |

----

|               |                         |        |        |      |   |        |      |   |        |
|---------------|-------------------------|--------|--------|------|---|--------|------|---|--------|
|          | Year Ended December 31, |   |
|          | 2010                    | 2009   | 2008   |
| Midwest:      | 24.2                    | %      |   | 22.2 | % |   | 29.8 | % |   |
| Southern:     | 13.3                    | %      |   | 15.8 | % |   | 20.7 | % |   |
| Mid-Atlantic: | 15.0                    | %      |   | 15.5 | % |   | 25.4 | % |   |
| Total         | 19.8                    | %      |   | 19.3 | % |   | 26.6 | % |   |

----

----

----

----

|                                                  |                |                    |                 |        |   |         |        |
|--------------------------------------------------|----------------|--------------------|-----------------|--------|---|---------|--------|
| (In thousands)                                   | ExpirationDate | OutstandingBalance | AvailableAmount |
| Notes payable banks – homebuilding (a)     | 6/9/2013       | $                  | —         |   | $ | 23,538  |   |
| Note payable bank – financial services (b) | 4/26/2011      | $                  | 32,197          |   | $ | — |   |
| Senior Notes                                     | 4/1/2012       | $                  | 41,443          |   | $ | — |   |
| Senior Notes                                     | 11/15/2018     | $                  | 200,000         |   | $ | — |   |
| MIF Mortgage Repurchase Agreement (c)            | 12/26/2011     | $                  | —         |   | $ | — |   |

|                             |                                                                                                                                                                                                                                                                                                                                 |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)     | The available amount is computed in accordance with the borrowing base calculation under the Credit Facility and can be increased if we secure additional assets or invest additional amounts in the currently pledged assets.  The maximum aggregate commitment amount of the Credit Facility is $140 million.  |

|                             |                                                                                                                                                                                                                                                                        |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)     | The available amount is in accordance with the borrowing base calculation under the MIF Credit Agreement and can be increased if we secure additional mortgage assets.  The maximum aggregate commitment amount of the MIF Credit Agreement is $45 million.  |

|                             |                                                                                                                                                                                                                                                  |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)     | M/I Financial entered into $10 million uncommitted repurchase agreement (the “MIF Mortgage Repurchase Agreement”) on December 27, 2010. At the discretion of the lender, we can increase availability by adding mortgage collateral. |

----

|                                                    |        |                             |        |        |             |        |       |        |
|----------------------------------------------------|--------|-----------------------------|--------|--------|-------------|--------|-------|--------|
| Financial Covenant                                 |   | Covenant Requirement        |   | Actual |
|                                               |   |  (Dollars in millions) |
| Minimum Net Worth (a)                              | =      | $                           | 191.6  |   |        | $      | 296.4 |   |
| Leverage Ratio (b)                                 | ≤   | 1.50 to 1.00                |   |   | 0.98 to 1   |   |
| Interest Coverage (c)                              | ≥   | 1.50 to 1.00                |   |   | 1.62 to 1   |   |
| Adjusted Cash Flow Coverage (c)                    | ≥   | 1.50 to 1.00                |   |   | (1.29) to 1 |   |
| Secured Indebtedness                               | <   | $                           | 25.0   |   |        | $      | 5.9   |   |
| Total Land Restriction                             | ≤   | $                           | 326.0  |   |        | $      | 211.0 |   |
| Limit on Investments in non-Guarantor Subsidiaries | ≤   | $                           | 88.9   |   |        | $      | 18.8  |   |
| Spec and Model Homes Restriction                   | ≤   | 816                         |   |   | 651         |   |

|                             |                                                                                                                                                                                                                                                  |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)     | Minimum Net Worth (called “Actual Consolidated Tangible Net Worth” in the Credit Facility) was calculated based on the stated amount of our consolidated equity less intangible assets of $7.1 million as of December 31, 2010. |

|                             |                                                                                                                     |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------|
| (b)     | Repayment guarantees are included in the definition of Indebtedness for purposes of calculating the Leverage Ratio. |

|                             |                                                                                                                                       |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------|
| (c)     | The Company is required to meet one of these two interest coverage requirements or pledge unrestricted cash in excess of $25 million. |

----

----

|                                                          |                        |           |         |        |           |        |         |         |         |        |         |        |   |         |        |
|----------------------------------------------------------|------------------------|-----------|---------|--------|-----------|--------|---------|---------|---------|--------|---------|--------|---|---------|--------|
|                                                     | Payments due by period |
|                                                     |                   | Less Than | 1 - 3   | 3 - 5  | More than |
|                                                     | Total                  | 1 year    | Years   | Years  | 5 years   |
| Note payable bank – financial services (a)    | $                      | 32,197    |    | $      | 32,197    |   | $       | — |    | $      | — |   | $ | — |   |
| Mortgage notes payable (including interest)              | 8,535                  |      | 769     |   | 1,532     |   | 1,522   |    | 4,712   |   |
| Senior Notes (including interest)                        | 383,717                |      | 20,099  |   | 77,368    |   | 34,500  |    | 251,750 |   |
| Obligation for consolidated inventory not owned (b) | —                |      | — |   | —   |   | — |    | — |   |
| Operating leases                                         | 7,632                  |      | 2,977   |   | 3,504     |   | 584     |    | 567     |   |
| Purchase obligations (c)                            | 58,910                 |      | 58,910  |   | —   |   | — |    | — |   |
| Land option agreements (d)                               | —                |      | — |   | —   |   | — |    | — |   |
| Unrecognized tax benefits (e)                            | —                |      | — |   | —   |   | — |    | — |   |
| Total                                                    | $                      | 490,991   |    | $      | 114,952   |   | $       | 82,404  |    | $      | 36,606  |   | $ | 257,029 |   |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                            |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)     | Borrowings under the MIF Credit Agreement are at the greater of 5.25% or LIBOR plus 400 basis points.  Borrowings outstanding at December 31, 2010 had a weighted average interest rate of 5.25%.  Interest payments by period will be based upon the outstanding borrowings and the applicable interest rate(s) in effect.  The above amounts do not reflect interest. |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)     | The Company is party to a land purchase option agreement to acquire developed lots from a seller who is a variable interest entity.  The Company has determined that it is the primary beneficiary of the variable interest entity, and therefore is required to consolidate the entity.  As of December 31, 2010, the Company had recorded a liability of $0.5 million relating to consolidation of the variable interest entity.  The actual cash payments that the Company will make in the future will be based upon the number of lots acquired each period under the option agreement and the related per lot prices in effect at that time. |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)     | As of December 31, 2010, the Company had obligations with certain subcontractors and suppliers of raw materials in the ordinary course of business to meet the commitment to deliver 532 homes with an aggregate sales price of $135.2 million.  Based on our current housing gross margin of 10.2%, exclusive of impairment charges, less variable selling costs of 4.1% of revenue, less costs already incurred on homes in backlog, we estimate payments totaling approximately $58.9 million to be made in 2011 relating to those homes. |

----

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d)     | As of December 31, 2010, the Company had options and contingent purchase agreements to acquire land and developed lots with an aggregate purchase price of approximately $113.2 million.  Purchase of properties is generally contingent upon satisfaction of certain requirements by the Company and the sellers and therefore the timing of payments under these agreements is not determinable.  The Company has no specific performance obligations with respect to these agreements. |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (e)     | We are subject to U.S. federal income tax as well as income tax of multiple state and local jurisdictions.  As of December 31, 2010, we had $3.3 million of gross unrecognized tax benefits, including $0.5 million of related accrued interest and $0.2 million of related accrued penalties.  We are currently not under examination by any taxing jurisdiction.   The statute of limitations for our major tax jurisdictions remains open for examination of tax years 2006 through 2010. |

----

----

|                                  |                                                            |
|----------------------------------|------------------------------------------------------------|
| Item 7A.     | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |

----

|                                      |                                |        |        |        |        |            |         |         |        |         |         |        |         |         |                          |         |         |        |         |         |        |        |        |         |        |        |   |         |        |
|--------------------------------------|--------------------------------|--------|--------|--------|--------|------------|---------|---------|--------|---------|---------|--------|---------|---------|--------------------------|---------|---------|--------|---------|---------|--------|--------|--------|---------|--------|--------|---|---------|--------|
|                                 | Weighted Average Interest Rate |   |   |   |   |       |    |    |   |    |    |   |    |    |                     |    |
|                                 |                           |   |   |   |   |       |    |    |   |    |    |   |    |    | Fair    Value 12/31/2010 |
|                                 |                           |   |
| (Dollars in thousands)               | 2011                           | 2012   | 2013   | 2014   | 2015   | Thereafter | Total   |
| ASSETS:                              |                           |   |   |   |   |       |    |    |   |    |    |   |    |    |                     |    |    |
| Mortgage loans held for sale:        |                           |   |   |   |   |       |    |    |   |    |    |   |    |    |                     |    |    |
| Fixed rate                           | 4.23                           | %      |   | $      | 44,669 |       |    | — |   |    | — |   |    | — |                     |    | — |   |    | — |   |   | $      | 44,669  |   |   | $ | 42,581  |   |
| Variable rate                        | 3.45                           | %      |   | 787    |   |       | — |    |   | — |    |   | — |    |                     | — |    |   | — |    |   | 787    |   |    | 731    |   |
| LIABILITIES:                         |                           |   |   |   |   |       |    |    |   |    |    |   |    |    |                     |    |    |
| Long-term debt – fixed rate    | 8.32                           | %      |   | $      | 332    |       |    | 41,803  |   |    | 391     |   |    | 424     |                     |    | 459     |   |    | 203,887 |   |   | $      | 247,296 |   |   | $ | 249,827 |   |
| Long-term debt – variable rate | 5.25                           | %      |   | 32,197 |   |       | — |    |   | — |    |   | — |    |                     | — |    |   | — |    |   | 32,197 |   |    | 32,197 |   |

----

|                                 |                                             |
|---------------------------------|---------------------------------------------|
| Item 8.     | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |

|                               |
|-------------------------------|
| /s/ DELOITTE & TOUCHE LLP |
| Deloitte & Touche LLP     |

----

|                                                               |             |         |         |        |          |        |   |          |        |
|---------------------------------------------------------------|-------------|---------|---------|--------|----------|--------|---|----------|--------|
|                                                          | Years Ended |
| (In thousands, except per share amounts)                      | 2010        | 2009    | 2008    |
| Revenue                                                       | $           | 616,377 |    | $      | 569,949  |   | $ | 607,659  |   |
| Costs, expenses and other loss (income):                      |        |    |    |   |     |   |
| Land and housing                                              | 511,408     |    | 494,989 |   | 532,164  |   |
| Impairment of inventory and investment in Unconsolidated LLCs | 12,538      |    | 55,421  |   | 153,300  |   |
| General and administrative                                    | 53,958      |    | 59,170  |   | 77,458   |   |
| Selling                                                       | 48,084      |    | 43,950  |   | 54,219   |   |
| Interest                                                      | 9,415       |    | 8,467   |   | 11,197   |   |
| Other loss (income)                                           | 8,378       |    | 941     |   | (5,555   | )      |
| Total costs, expenses and other loss (income)                 | 643,781     |    | 662,938 |   | 822,783  |   |
| Loss from continuing operations before income taxes           | (27,404     | )       | (92,989 | )      | (215,124 | )      |
| (Benefit) provision for income taxes                          | (1,135      | )       | (30,880 | )      | 30,291   |   |
| Loss from continuing operations                               | (26,269     | )       | (62,109 | )      | (245,415 | )      |
| Discontinued operation, net of tax                            | —     |    | — |   | (33      | )      |
| Net loss                                                      | (26,269     | )       | (62,109 | )      | (245,448 | )      |
| Preferred dividends                                           | —     |    | — |   | 4,875    |   |
| Net loss to common shareholders                               | $           | (26,269 | )       | $      | (62,109  | )      | $ | (250,323 | )      |
| Loss per common share:                                        |        |    |    |   |     |   |
| Basic:                                                        |        |    |    |   |     |   |
| Continuing operations                                         | $           | (1.42   | )       | $      | (3.71    | )      | $ | (17.86   | )      |
| Discontinued operation                                        | —     |    | — |   | —  |   |
| Basic loss                                                    | $           | (1.42   | )       | $      | (3.71    | )      | $ | (17.86   | )      |
| Diluted:                                                      |        |    |    |   |     |   |
| Continuing operations                                         | $           | (1.42   | )       | $      | (3.71    | )      | $ | (17.86   | )      |
| Discontinued operation                                        | —     |    | — |   | —  |   |
| Diluted loss                                                  | $           | (1.42   | )       | $      | (3.71    | )      | $ | (17.86   | )      |
| Weighted average shares outstanding:                          |        |    |    |   |     |   |
| Basic                                                         | 18,523      |    | 16,730  |   | 14,016   |   |
| Diluted                                                       | 18,523      |    | 16,730  |   | 14,016   |   |
| Dividends per common share                                    | $           | — |    | $      | —  |   | $ | 0.05     |   |

----

|                                                                                                                                  |              |         |         |        |         |        |
|----------------------------------------------------------------------------------------------------------------------------------|--------------|---------|---------|--------|---------|--------|
|                                                                                                                             | December 31, |
| (Dollars in thousands, except par values)                                                                                        | 2010         | 2009    |
| ASSETS:                                                                                                                          |         |    |
| Cash                                                                                                                             | $            | 81,208  |    | $      | 109,930 |   |
| Restricted cash                                                                                                                  | 41,923       |    | 22,302  |   |
| Mortgage loans held for sale                                                                                                     | 43,312       |    | 34,978  |   |
| Inventory                                                                                                                        | 450,936      |    | 420,289 |   |
| Property and equipment - net                                                                                                     | 16,554       |    | 18,998  |   |
| Investment in Unconsolidated LLCs                                                                                                | 10,589       |    | 10,299  |   |
| Income tax receivable                                                                                                            | 994          |    | 30,135  |   |
| Other assets                                                                                                                     | 16,378       |    | 16,897  |   |
| TOTAL ASSETS                                                                                                                     | $            | 661,894 |    | $      | 663,828 |   |
|                                                                                                                             |         |    |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                       |         |    |    |   |
|                                                                                                                             |         |    |
| LIABILITIES:                                                                                                                     |         |    |    |   |
| Accounts payable                                                                                                                 | $            | 29,030  |    | $      | 38,262  |   |
| Customer deposits                                                                                                                | 3,017        |    | 3,831   |   |
| Other liabilities                                                                                                                | 42,116       |    | 56,426  |   |
| Community development district obligations                                                                                       | 7,112        |    | 8,204   |   |
| Obligation for consolidated inventory not owned                                                                                  | 468          |    | 616     |   |
| Note payable bank – financial services operations                                                                          | 32,197       |    | 24,142  |   |
| Notes payable - other                                                                                                            | 5,853        |    | 6,160   |   |
| Senior notes                                                                                                                     | 238,610      |    | 199,424 |   |
| TOTAL LIABILITIES                                                                                                                | 358,403      |    | 337,065 |   |
|                                                                                                                             |         |    |
| Commitments and contingencies                                                                                                    | —      |    | — |   |
|                                                                                                                             |         |    |
| SHAREHOLDERS’ EQUITY:                                                                                                      |         |    |    |   |
| Preferred shares  –  $.01 par value; authorized 2,000,000 shares; issued 4,000 shares                  | 96,325       |    | 96,325  |   |
|  Common shares  –  $.01 par value; authorized 38,000,000 shares; issued 22,101,723 shares at both | 221          |    | 221     |   |
| December 31, 2010 and 2009                                                                                                       |         |    |    |   |
| Additional paid-in capital                                                                                                       | 140,418      |    | 137,492 |   |
| Retained earnings                                                                                                                | 137,578      |    | 163,847 |   |
| Treasury shares – at cost – 3,577,388 and 3,580,987 shares, respectively, at December 31, 2010 and 2009              | (71,051      | )       | (71,122 | )      |
| TOTAL SHAREHOLDERS’ EQUITY                                                                                                 | 303,491      |    | 326,763 |   |
|  TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                           | $            | 661,894 |    | $      | 663,828 |   |

----

|                                                               |                   |               |                            |        |                  |                          |         |        |         |        |          |         |         |        |          |        |   |         |   |   |         |        |
|---------------------------------------------------------------|-------------------|---------------|----------------------------|--------|------------------|--------------------------|---------|--------|---------|--------|----------|---------|---------|--------|----------|--------|---|---------|---|---|---------|--------|
|                                                          | Preferred Shares  | Common Shares | Additional Paid-In Capital |   |             | TotalShareholders'Equity |
| (Dollars in thousands, except per share amounts)              | SharesOutstanding | Amount        | SharesOutstanding          | Amount | RetainedEarnings | TreasuryShares           |
| Balance at December 31, 2007                                  | 4,000             |          | $                          | 96,325 |             | 14,004,790               |    | $      | 176     |   | $        | 79,428  |    | $      | 477,339  |   | $ | (71,923 | ) | $ | 581,345 |   |
| Net loss                                                      | —           |          | —                    |   | —          |                     | — |   | — |   | (245,448 | )       | — |   | (245,448 | )      |
| Dividends on preferred shares, $1,218.75 per share            | —           |          | —                    |   | —          |                     | — |   | — |   | (4,875   | )       | — |   | (4,875   | )      |
| Dividends on common shares, $0.05 per share                   | —           |          | —                    |   | —          |                     | — |   | — |   | (1,060   | )       | — |   | (1,060   | )      |
| Income tax benefit from stock options and                     |              |          |                       |   |             |                     |    |   |    |   |     |    |    |   |     |
| deferred compensation distributions                           | —           |          | —                    |   | —          |                     | — |   | (97     | )      | —  |    | — |   | (97      | )      |
| Stock options exercised - net of restricted stock forfeitures | —           |          | —                    |   | 5,527            |                     | — |   | (35     | )      | —  |    | 110     |   | 75       |   |
| Share-based compensation expense                              | —           |          | —                    |   | —          |                     | — |   | 2,983   |   | —  |    | — |   | 2,983    |   |
| Deferral of executive and director compensation               | —           |          | —                    |   | —          |                     | — |   | 138     |   | —  |    | — |   | 138      |   |
| Executive and director deferred compensation distributions    | —           |          | —                    |   | 13,665           |                     | — |   | (271    | )      | —  |    | 271     |   | —  |   |
| Balance at December 31, 2008                                  | 4,000             |          | $                          | 96,325 |             | 14,023,982               |    | $      | 176     |   | $        | 82,146  |    | $      | 225,956  |   | $ | (71,542 | ) | $ | 333,061 |   |
| Net loss                                                      | —           |          | —                    |   | —          |                     | — |   | — |   | (62,109  | )       | — |   | (62,109  | )      |
| Common stock issuance                                         | —           |          | —                    |   | 4,475,600        |                     | 45      |   | 52,523  |   | —  |    | — |   | 52,568   |   |
| Income tax benefit from stock options and                     |              |          |                       |   |             |                     |    |   |    |   |     |    |    |   |     |
| deferred compensation distributions                           | —           |          | —                    |   | —          |                     | — |   | (101    | )      | —  |    | — |   | (101     | )      |
| Stock options exercised                                       | —           |          | —                    |   | 10,500           |                     | — |   | (139    | )      | —  |    | 209     |   | 70       |   |
| Stock-based compensation expense                              | —           |          | —                    |   | —          |                     | — |   | 3,111   |   | —  |    | — |   | 3,111    |   |
| Deferral of executive and director compensation               | —           |          | —                    |   | —          |                     | — |   | 163     |   | —  |    | — |   | 163      |   |
| Executive and director deferred compensation distributions    | —           |          | —                    |   | 10,654           |                     | — |   | (211    | )      | —  |    | 211     |   | —  |   |
| Balance at December 31, 2009                                  | 4,000             |          | $                          | 96,325 |             | 18,520,736               |    | $      | 221     |   | $        | 137,492 |    | $      | 163,847  |   | $ | (71,122 | ) | $ | 326,763 |   |
| Net loss                                                      | —           |          | —                    |   | —          |                     | — |   | — |   | (26,269  | )       | — |   | (26,269  | )      |
| Income tax benefit from stock options and                     |              |          |                       |   |             |                     |    |   |    |   |     |    |    |   |     |
| deferred compensation distributions                           | —           |          | —                    |   | —          |                     | — |   | (13     | )      | —  |    | — |   | (13      | )      |
| Stock options exercised                                       | —           |          | —                    |   | 1,600            |                     | — |   | (19     | )      | —  |    | 31      |   | 12       |   |
| Stock-based compensation expense                              | —           |          | —                    |   | —          |                     | — |   | 2,811   |   | —  |    | — |   | 2,811    |   |
| Deferral of executive and director compensation               | —           |          | —                    |   | —          |                     | — |   | 187     |   | —  |    | — |   | 187      |   |
| Executive and director deferred compensation distributions    | —           |          | —                    |   | 1,999            |                     | — |   | (40     | )      | —  |    | 40      |   | —  |   |
| Balance at December 31, 2010                                  | 4,000             |          | $                          | 96,325 |             | 18,524,335               |    | $      | 221     |   | $        | 140,418 |    | $      | 137,578  |   | $ | (71,051 | ) | $ | 303,491 |   |

----

|                                                                                                    |             |         |          |        |          |        |   |          |        |
|----------------------------------------------------------------------------------------------------|-------------|---------|----------|--------|----------|--------|---|----------|--------|
|                                                                                               | Years Ended |
| (In thousands)                                                                                     | 2010        | 2009    | 2008     |
| OPERATING ACTIVITIES:                                                                              |        |    |     |
| Net loss                                                                                           | $           | (26,269 | )        | $      | (62,109  | )      | $ | (245,448 | )      |
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities:          |        |    |     |   |     |   |
| Inventory valuation adjustments and abandoned land transaction write-offs                          | 13,158      |    | 49,346   |   | 134,160  |   |
| Impairment of investment in unconsolidated limited liability companies                             | —     |    | 7,731    |   | 24,452   |   |
| Impairment of property and equipment                                                               | —     |    | —  |   | 3,283    |   |
| Mortgage loan originations                                                                         | (416,498    | )       | (420,761 | )      | (382,992 | )      |
| Proceeds from the sale of mortgage loans                                                           | 406,944     |    | 420,943  |   | 405,107  |   |
| Fair value adjustment of mortgage loans held for sale                                              | 1,220       |    | 2,612    |   | (2,395   | )      |
| Net loss (gain) from property disposals                                                            | 12          |    | 951      |   | (5,524   | )      |
| Bad debt expense                                                                                   | —     |    | 2,523    |   | 1,255    |   |
| Depreciation                                                                                       | 5,194       |    | 5,244    |   | 6,197    |   |
| Amortization of intangibles, debt discount and debt issue costs                                    | 2,562       |    | 2,627    |   | 1,557    |   |
| Loss on early extinguishment of debt, including transaction costs                                  | 8,378       |    | —  |   | —  |   |
| Stock-based compensation expense                                                                   | 2,811       |    | 3,111    |   | 2,983    |   |
| Deferred income tax benefit                                                                        | (10,797     | )       | (8,220   | )      | (40,740  | )      |
| Deferred tax asset valuation allowance                                                             | 10,797      |    | 8,220    |   | 108,607  |   |
| Income tax receivable                                                                              | 29,141      |    | 9,321    |   | 14,211   |   |
| Excess tax expense from stock-based payment arrangements                                           | 13          |    | 101      |   | 97       |   |
| Equity in undistributed loss of limited liability companies                                        | (275        | )       | 14       |   | 431      |   |
| Write-off of unamortized debt discount and financing costs                                         | 311         |    | 554      |   | 1,059    |   |
| Change in assets and liabilities:                                                                  |        |    |     |   |     |   |
| Cash held in escrow                                                                                | (36         | )       | 3,511    |   | 14,597   |   |
| Inventory                                                                                          | (44,996     | )       | 37,221   |   | 161,087  |   |
| Other assets                                                                                       | 5,210       |    | (34      | )      | 8,695    |   |
| Accounts payable                                                                                   | (9,232      | )       | 10,720   |   | (42,882  | )      |
| Customer deposits                                                                                  | (814        | )       | 325      |   | (4,798   | )      |
| Accrued compensation                                                                               | (471        | )       | (2,169   | )      | (2,848   | )      |
| Other liabilities                                                                                  | (13,665     | )       | (3,301   | )      | (11,276  | )      |
| Net cash (used in) provided by operating activities                                                | (37,302     | )       | 68,481   |   | 148,875  |   |
| INVESTING ACTIVITIES:                                                                              |        |    |     |   |     |   |
| Restricted cash                                                                                    | (19,585     | )       | (19,155  | )      | —  |   |
| Purchase of property and equipment                                                                 | (1,560      | )       | (4,008   | )      | (3,947   | )      |
| Proceeds from the sale of property                                                                 | —     |    | 7,878    |   | 9,454    |   |
| Investment in Unconsolidated limited liability companies                                           | (1,229      | )       | (5,003   | )      | (5,196   | )      |
| Return of investment from Unconsolidated limited liability companies                               | 13          |    | 809      |   | 431      |   |
| Net cash (used in) provided by investing activities                                                | (22,361     | )       | (19,479  | )      | 742      |   |
| FINANCING ACTIVITIES:                                                                              |        |    |     |   |     |   |
| Repayment of senior notes, including transaction costs                                             | (166,088    | )       | —  |   | —  |   |
| Proceeds from issuance of senior notes                                                             | 197,174     |    | —  |   | —  |   |
| Repayments of bank borrowings - net                                                                | 8,055       |    | (10,936  | )      | (110,465 | )      |
| Principal repayments of mortgage notes payable and community development district bond obligations | (325        | )       | (10,782  | )      | (331     | )      |
| Net proceeds from issuance of common stock                                                         | —     |    | 52,568   |   | —  |   |
| Debt issue costs                                                                                   | (7,874      | )       | (2,318   | )      | (1,063   | )      |
| Payments on capital lease obligations                                                              | —     |    | (91      | )      | (789     | )      |
| Dividends paid                                                                                     | —     |    | —  |   | (5,935   | )      |
| Proceeds from exercise of stock options                                                            | 12          |    | 70       |   | 75       |   |
| Excess tax benefits from stock-based payment arrangements                                          | (13         | )       | (101     | )      | (97      | )      |
| Net cash provided by (used in) financing activities                                                | 30,941      |    | 28,410   |   | (118,605 | )      |
| Net (decrease) increase in cash                                                                    | (28,722     | )       | 77,412   |   | 31,012   |   |
| Cash balance at beginning of year                                                                  | 109,930     |    | 32,518   |   | 1,506    |   |
| Cash balance at end of year                                                                        | $           | 81,208  |     | $      | 109,930  |   | $ | 32,518   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                                                  |        |    |     |   |     |   |
| Cash paid during the year for:                                                                     |        |    |     |   |     |   |
| Interest – net of amount capitalized                                                         | $           | 6,774   |     | $      | 5,541    |   | $ | 3,455    |   |
| Income taxes                                                                                       | $           | 302     |     | $      | 201      |   | $ | 525      |   |
| NON-CASH INVESTING AND FINANCING TRANSACTIONS DURING THE YEAR:                                     |        |    |     |   |     |   |
| Community development district infrastructure                                                      | $           | (1,074  | )        | $      | (2,189   | )      | $ | (1,304   | )      |
| Consolidated inventory not owned                                                                   | $           | (148    | )        | $      | (4,933   | )      | $ | (1,884   | )      |
| Distribution of single-family lots from Unconsolidated limited liability companies                 | $           | 1,201   |     | $      | (22      | )      | $ | 9,969    |   |
| Non-monetary exchange of fixed assets                                                              | $           | — |     | $      | —  |   | $ | 13,000   |   |
| Deferral of executive and director compensation                                                    | $           | 187     |     | $      | 163      |   | $ | 138      |   |
| Executive and director deferred stock distributions                                                | $           | 40      |     | $      | 211      |   | $ | 271      |   |

----

----

|                                               |                         |        |         |        |         |        |   |        |        |
|-----------------------------------------------|-------------------------|--------|---------|--------|---------|--------|---|--------|--------|
|                                          | Year Ended December 31, |
|                                          | 2010                    | 2009   | 2008    |
| Capitalized interest, beginning of year       | $                       | 23,670 |    | $      | 25,838  |   | $ | 29,212 |   |
| Interest capitalized to inventory             | 9,744                   |   | 9,552   |   | 9,593   |   |
| Capitalized interest charged to cost of sales | (13,339                 | )      | (11,720 | )      | (12,967 | )      |
| Capitalized interest, end of year             | $                       | 20,075 |    | $      | 23,670  |   | $ | 25,838 |   |
| Interest incurred                             | $                       | 19,159 |    | $      | 18,019  |   | $ | 20,790 |   |

----

|                                                                                      |                         |        |         |        |        |        |
|--------------------------------------------------------------------------------------|-------------------------|--------|---------|--------|--------|--------|
|                                                                                 | Year Ended December 31, |
|                                                                                 | 2010                    | 2009   |
| Land, building and improvements                                                      | $                       | 11,823 |    | $      | 11,823 |   |
| Office furnishings, leasehold improvements, computer equipment and computer software | 25,927                  |   | 24,524  |   |
| Transportation and construction equipment                                            | 405                     |   | 404     |   |
| Property and equipment                                                               | 38,155                  |   | 36,751  |   |
| Accumulated depreciation                                                             | (21,601                 | )      | (17,753 | )      |
| Property and equipment, net                                                          | $                       | 16,554 |    | $      | 18,998 |   |

|                                                                                      |                       |
|--------------------------------------------------------------------------------------|-----------------------|
|                                                                                 | EstimatedUseful Lives |
| Building and improvements                                                            | 35 years              |
| Office furnishings, leasehold improvements, computer equipment and computer software | 3-7 years             |
| Transportation and construction equipment                                            | 5-20 years            |

----

|                                |                                            |
|--------------------------------|--------------------------------------------|
| •     | Home Builder’s Limited Warranty; and |

|                                |                                                                                                   |
|--------------------------------|---------------------------------------------------------------------------------------------------|
| •     | 30-year transferable structural warranty – effective for homes closed after April 24, 1998. |

----

|                                          |         |        |         |        |         |        |         |        |          |        |        |        |          |        |         |        |        |        |
|------------------------------------------|---------|--------|---------|--------|---------|--------|---------|--------|----------|--------|--------|--------|----------|--------|---------|--------|--------|--------|
| Year Ended December 31,             |
| (In thousands, except per share amounts) | 2010    | 2009   | 2008    |
|                                     | Loss    | Shares | EPS     | Loss   | Shares  | EPS    | Income  | Shares | EPS      |
| Basic loss from continuing operations    | (26,269 | )      |    |   | (62,109 | )      |    |   | (245,415 | )      |   |   |
| Less: preferred stock dividends          | — |   |    |   | — |   |    |   | 4,875    |   |   |   |
| Loss to common                           |    |   |    |   |    |   |    |   |     |   |   |   |
| shareholders from continuing operations  | (26,269 | )      | 18,523  |   | (1.42   | )      | (62,109 | )      | 16,730   |   | (3.71  | )      | (250,290 | )      | 14,016  |   | (17.86 | )      |
| Effect of dilutive securities:           |    |   |    |   |    |   |    |   |     |   |   |   |     |   |    |   |   |   |
| Stock options awards                     |    |   | — |   |    |   |    |   | —  |   |   |   |     |   | — |   |   |   |
| Deferred compensation awards             |    |   | — |   |    |   |    |   | —  |   |   |   |     |   | — |   |   |   |
| Diluted loss to common shareholders from |    |   |    |   |    |   |    |   |     |   |   |   |     |   |    |   |   |   |
| continuing operations                    | (26,269 | )      | 18,523  |   | (1.42   | )      | (62,109 | )      | 16,730   |   | (3.71  | )      | (250,290 | )      | 14,016  |   | (17.86 | )      |
| Anti-dilutive stock equivalent awards    |    |   |    |   |    |   |    |   |     |   |   |   |     |   |    |   |   |   |
| not included in the calculation          |    |   |    |   |    |   |    |   |     |   |   |   |     |   |    |   |   |   |
| of diluted loss per share                |    |   | 2,070   |   |    |   |    |   | 1,723    |   |   |   |     |   | 1,386   |   |   |   |

----

|                                |                                                                                                                                             |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|
| •     | future reversals of existing taxable temporary differences (i.e., offset gross deferred tax assets against gross deferred tax liabilities); |

|                                |                                          |
|--------------------------------|------------------------------------------|
| •     | taxable income in prior carryback years; |

|                                |                              |
|--------------------------------|------------------------------|
| •     | tax planning strategies; and |

|                                |                                                                                        |
|--------------------------------|----------------------------------------------------------------------------------------|
| •     | future taxable income, exclusive of reversing temporary differences and carryforwards. |

|                                |                                                                                                                                                                                                                      |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | a strong earnings history exclusive of the loss that created the deductible temporary differences, coupled with evidence indicating that the loss is the result of an aberration rather than a continuing condition; |

|                                |                                                                                                                                                        |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | an excess of appreciated asset value over the tax basis of a company’s net assets in an amount sufficient to realize the deferred tax asset; and |

|                                |                                                                                                                                                          |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | existing backlog that will produce more than enough taxable income to realize the deferred tax asset based on existing sales prices and cost structures. |

|                                |                                                                                                                                                 |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | the existence of “cumulative losses” (defined as a pre-tax cumulative loss for the business cycle – in our case, four years); |

|                                |                                                                                     |
|--------------------------------|-------------------------------------------------------------------------------------|
| •     | an expectation of being in a cumulative loss position in a future reporting period; |

|                                |                                                                                                          |
|--------------------------------|----------------------------------------------------------------------------------------------------------|
| •     | a carryback or carryforward period that is so brief that it would limit the realization of tax benefits; |

|                                |                                                                              |
|--------------------------------|------------------------------------------------------------------------------|
| •     | a history of operating loss or tax credit carryforwards expiring unused; and |

|                                |                                                                                                                                          |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|
| •     | unsettled circumstances that, if unfavorably resolved, would adversely affect future operations and profit levels on a continuing basis. |

----

|                                |                                   |
|--------------------------------|-----------------------------------|
| •     | additional inventory impairments; |

|                                |                                      |
|--------------------------------|--------------------------------------|
| •     | additional pre-tax operating losses; |

|                                |                                                                                                                     |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------|
| •     | the utilization of tax planning strategies that could accelerate the realization of certain deferred tax assets; or |

|                                |                              |
|--------------------------------|------------------------------|
| •     | changes in relevant tax law. |

----

|                                                         |           |                              |                                                    |                                                  |        |        |        |        |        |        |       |        |        |        |
|---------------------------------------------------------|-----------|------------------------------|----------------------------------------------------|--------------------------------------------------|--------|--------|--------|--------|--------|--------|-------|--------|--------|--------|
|                                                    | Shares    | WeightedAverageExercisePrice | WeightedAverage Remaining Contractual Term (Years) | AggregateIntrinsic Value (a) (In thousands) |
| Options outstanding at December 31, 2009                | 1,624,043 |                         |                                               | 25.69                                            |   |   | 7.01   |   |   | $      | 1,237 |   |   |
| Granted                                                 | 360,040   |                         |                                               | 13.19                                            |   |   |   |   |   |   |
| Exercised                                               | (1,600    | )                            |                                               | 7.85                                             |   |   |   |   |   |   |
| Forfeited                                               | (19,500   | )                            |                                               | 35.35                                            |   |   |   |   |   |   |
| Options outstanding at December 31, 2010                | 1,962,983 |                         |                                               | $                                                | 23.31  |   |   | 6.56   |   |   | $     | 4,445  |   |   |
| Options vested or expected to vest at December 31, 2010 | 1,911,344 |                         |                                               | $                                                | 22.60  |   |   | 6.53   |   |   | $     | 4,296  |   |   |
| Options exercisable at December 31, 2010                | 1,100,876 |                         |                                               | $                                                | 32.01  |   |   | 5.32   |   |   | $     | 800    |   |   |

|                             |                                                                                                                                            |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|
| (a)     | Intrinsic value is defined as the amount by which the fair value of the underlying common shares exceeds the exercise price of the option. |

|                                                                             |                         |        |        |         |        |        |        |        |        |      |        |        |
|-----------------------------------------------------------------------------|-------------------------|--------|--------|---------|--------|--------|--------|--------|--------|------|--------|--------|
|                                                                        | Year Ended December 31, |
|                                                                        | 2010                    | 2009   | 2008   |
| Expected dividend yield                                                     | —                 | %      |   | — | %      |   | 0.4    | %      |   |
| Risk-free interest rate                                                     | 2.29                    | %      |   | 1.99    | %      |   | 2.71   | %      |   |
| Expected volatility                                                         | 45.70                   | %      |   | 44.66   | %      |   | 41.98  | %      |   |
| Expected term (in years)                                                    | 5.5                     |   |   | 6.0     |   |   | 6.2    |   |   |
| Weighted average grant date fair value of options granted during the period | $                       | 5.84   |   |    | $      | 3.54   |   |   | $      | 7.61 |   |   |

|                                                                             |                         |        |        |        |      |        |
|-----------------------------------------------------------------------------|-------------------------|--------|--------|--------|------|--------|
|                                                                        | Year Ended December 31, |
|                                                                        | 2010                    | 2009   |
| Risk-free interest rate                                                     | 2.29                    | %      | 1.99   | %      |
| Expected volatility                                                         | 45.70                   | %      | 45.70  | %      |
| Expected term (in years)                                                    | 4.5                     |   | 5.0    |   |
| Weighted average grant date fair value of options granted during the period | $                       | 5.31   |   | $      | 3.30 |   |

----

|                                                                                                              |              |         |         |        |         |        |
|--------------------------------------------------------------------------------------------------------------|--------------|---------|---------|--------|---------|--------|
|                                                                                                         | December 31, |
|                                                                                                         | 2010         | 2009    |
| Single-family lots, land and land development costs                                                          | $            | 262,960 |    | $      | 232,127 |   |
| Land held for sale                                                                                           | —      |    | 4,300   |   |
| Homes under construction                                                                                     | 151,524      |    | 158,998 |   |
| Model homes and furnishings - at cost (less accumulated depreciation:  December 31, 2010 - $3,230; |         |    |    |   |
| December 31, 2009 - $3,069)                                                                                  | 23,255       |    | 14,726  |   |
| Community development district infrastructure                                                                | 7,112        |    | 8,186   |   |
| Land purchase deposits                                                                                       | 1,965        |    | 1,336   |   |
| Consolidated inventory not owned                                                                             | 4,120        |    | 616     |   |
| Total inventory                                                                                              | $            | 450,936 |    | $      | 420,289 |   |

----

|                    |              |         |         |        |         |        |
|--------------------|--------------|---------|---------|--------|---------|--------|
|               | December 31, |
| (in thousands)     | 2010         | 2009    |
| Homebuilding       | $            | 71,874  |    | $      | 96,464  |   |
| Financial services | 9,334        |    | 13,466  |   |
| Unrestricted cash  | 81,208       |    | 109,930 |   |
| Restricted cash    | 41,923       |    | 22,302  |   |
| Total cash         | $            | 123,131 |    | $      | 132,232 |   |

----

|                                                    |                                          |                                                             |                                             |                                        |        |         |        |        |        |         |        |        |   |         |        |        |
|----------------------------------------------------|------------------------------------------|-------------------------------------------------------------|---------------------------------------------|----------------------------------------|--------|---------|--------|--------|--------|---------|--------|--------|---|---------|--------|--------|
|                                               | Fair ValueMeasurements December 31, 2010 | Quoted Prices in ActiveMarkets for IdenticalAssets(Level 1) | Significant OtherObservable Inputs(Level 2) | SignificantUnobservableInputs(Level 3) |
| Description of Financial Instrument (in thousands) |
| Mortgage loans held for sale                       | $                                        | 43,312                                                      |                                        |                                   | $      | — |   |   | $      | 43,312  |   |   | $ | — |   |   |
| Forward sales of mortgage-backed securities        | 121                                      |                                                        |                                        | —                                |   |    | 121    |   |   | — |   |   |
| Interest rate lock commitments                     | (43                                      | )                                                           |                                        | —                                |   |    | (43    | )      |   | — |   |   |
| Best-efforts contracts                             | 340                                      |                                                        |                                        | —                                |   |    | 340    |   |   | — |   |   |
| Total                                              | $                                        | 43,730                                                      |                                        |                                   | $      | — |   |   | $      | 43,730  |   |   | $ | — |   |   |

----

|                                                    |                        |                                                             |                                             |                                        |        |         |        |        |        |         |        |        |   |         |        |        |
|----------------------------------------------------|------------------------|-------------------------------------------------------------|---------------------------------------------|----------------------------------------|--------|---------|--------|--------|--------|---------|--------|--------|---|---------|--------|--------|
|                                               | Fair ValueMeasurements | Quoted Prices in ActiveMarkets for IdenticalAssets(Level 1) | Significant OtherObservable Inputs(Level 2) | SignificantUnobservableInputs(Level 3) |
| Description of Financial Instrument (in thousands) | December 31, 2009      |
| Mortgage loans held for sale                       | $                      | 34,978                                                      |                                        |                                   | $      | — |   |   | $      | 34,978  |   |   | $ | — |   |   |
| Forward sales of mortgage-backed securities        | 833                    |                                                        |                                        | —                                |   |    | 833    |   |   | — |   |   |
| Interest rate lock commitments                     | (145                   | )                                                           |                                        | —                                |   |    | (145   | )      |   | — |   |   |
| Best-efforts contracts                             | 308                    |                                                        |                                        | —                                |   |    | 308    |   |   | — |   |   |
| Total                                              | $                      | 35,974                                                      |                                        |                                   | $      | — |   |   | $      | 35,974  |   |   | $ | — |   |   |

|                                             |                         |        |       |        |        |        |   |       |        |
|---------------------------------------------|-------------------------|--------|-------|--------|--------|--------|---|-------|--------|
|                                        | Year Ended December 31, |
| Description (in thousands)                  | 2010                    | 2009   | 2008  |
| Mortgage loans held for sale                | $                       | (1,220 | )     | $      | (2,612 | )      | $ | 2,395 |   |
| Forward sales of mortgage-backed securities | (712                    | )      | 1,937 |   | (487   | )      |
| Interest rate lock commitments              | 102                     |   | (783  | )      | 412    |   |
| Best-efforts contracts                      | 32                      |   | 235   |   | 180    |   |
| Total gain (loss) recognized                | $                       | (1,798 | )     | $      | (1,223 | )      | $ | 2,500 |   |

|                                             |        |                        |        |                           |        |                        |                   |                           |         |        |         |        |
|---------------------------------------------|--------|------------------------|--------|---------------------------|--------|------------------------|-------------------|---------------------------|---------|--------|---------|--------|
|                                        |   | Asset Derivatives      |   | Liability Derivatives     |
|                                        |   | At December 31, 2010   |   | At December 31, 2010      |
| Description of Derivatives                  |   | Balance Sheet Location |   | Fair Value (in thousands) |   | Balance Sheet Location |              | Fair Value (in thousands) |
| Forward sales of mortgage-backed securities |   | Other assets           |   | $                         | 121    |                   |              | Other liabilities         |    | $      | — |   |
| Interest rate lock commitments              |   | Other assets           |   | —                   |   |                   | Other liabilities |                      | 43      |   |
| Best-efforts contracts                      |   | Other assets           |   | 340                       |   |                   | Other liabilities |                      | — |   |
| Total fair value measurements               |   |                   |   | $                         | 461    |                   |              |                      |    | $      | 43      |   |

|                                             |        |                        |        |                           |        |                        |                   |                           |         |        |         |        |
|---------------------------------------------|--------|------------------------|--------|---------------------------|--------|------------------------|-------------------|---------------------------|---------|--------|---------|--------|
|                                        |   | Asset Derivatives      |   | Liability Derivatives     |
|                                        |   | At December 31, 2009   |   | At December 31, 2009      |
| Description of Derivatives                  |   | Balance Sheet Location |   | Fair Value (in thousands) |   | Balance Sheet Location |              | Fair Value (in thousands) |
| Forward sales of mortgage-backed securities |   | Other assets           |   | $                         | 833    |                   |              | Other liabilities         |    | $      | — |   |
| Interest rate lock commitments              |   | Other assets           |   | —                   |   |                   | Other liabilities |                      | 145     |   |
| Best-efforts contracts                      |   | Other assets           |   | 308                       |   |                   | Other liabilities |                      | — |   |
| Total fair value measurements               |   |                   |   | $                         | 1,141  |                   |              |                      |    | $      | 145     |   |

----

|                                |                                                                                                                  |
|--------------------------------|------------------------------------------------------------------------------------------------------------------|
| •     | historical project results such as average sales price and sales pace, if closings have occurred in the project; |

|                                |                                                                                    |
|--------------------------------|------------------------------------------------------------------------------------|
| •     | competitors’ market and/or community presence and their competitive actions; |

|                                |                                                                                               |
|--------------------------------|-----------------------------------------------------------------------------------------------|
| •     | project specific attributes such as location desirability and uniqueness of product offering; |

|                                |                                                                                        |
|--------------------------------|----------------------------------------------------------------------------------------|
| •     | potential for alternative product offerings to respond to local market conditions; and |

|                                |                                                                               |
|--------------------------------|-------------------------------------------------------------------------------|
| •     | current economic and demographic conditions and related trends and forecasts. |

----

----

|                                                 |                                          |                                                               |                                              |                                          |              |        |   |         |        |   |        |        |        |        |
|-------------------------------------------------|------------------------------------------|---------------------------------------------------------------|----------------------------------------------|------------------------------------------|--------------|--------|---|---------|--------|---|--------|--------|--------|--------|
| Description of asset or liability(In thousands) | Fair Value MeasurementsDecember 31, 2010 | Quoted Prices in Active Markets for Identical Assets(Level 1) | Significant Other Observable Inputs(Level 2) | Significant Unobservable Inputs(Level 3) | Total Losses |
|                                            |                                     |                                                          |                                         |                                     |         |
| Inventory                                       | $                                        | 16,793                                                        |                                         | $                                        | —      |   | $ | — |   | $ | 16,793 |   | 12,506 |   |
| Investments in LLCs                             | $                                        | 50                                                            |                                         | $                                        | —      |   | $ | — |   | $ | 50     |   | 32     |   |
|                                            |                                     |                                                          |                                         |                                     |         |
| Total fair value measurements                   | $                                        | 16,843                                                        |                                         | $                                        | —      |   | $ | — |   | $ | 16,843 |   | 12,538 |   |

|                                                 |                                          |                                                               |                                              |                                          |              |        |   |         |        |   |        |        |        |        |
|-------------------------------------------------|------------------------------------------|---------------------------------------------------------------|----------------------------------------------|------------------------------------------|--------------|--------|---|---------|--------|---|--------|--------|--------|--------|
| Description of asset or liability(In thousands) | Fair Value MeasurementsDecember 31, 2009 | Quoted Prices in Active Markets for Identical Assets(Level 1) | Significant Other Observable Inputs(Level 2) | Significant Unobservable Inputs(Level 3) | Total Losses |
|                                            |                                     |                                                          |                                         |                                     |         |
| Inventory                                       | $                                        | 75,523                                                        |                                         | $                                        | —      |   | $ | — |   | $ | 75,523 |   | 47,690 |   |
| Investments in LLCs                             | $                                        | 7,660                                                         |                                         | $                                        | —      |   | $ | — |   | $ | 7,660  |   | 7,731  |   |
|                                            |                                     |                                                          |                                         |                                     |         |
| Total fair value measurements                   | $                                        | 83,183                                                        |                                         | $                                        | —      |   | $ | — |   | $ | 83,183 |   | 55,421 |   |

----

|                                                                |                         |         |         |        |         |        |   |         |        |
|----------------------------------------------------------------|-------------------------|---------|---------|--------|---------|--------|---|---------|--------|
|                                                           | Year Ended December 31, |
| (In thousands)                                                 | 2010                    | 2009    | 2008    |
| Impairment of operating communities:                           |                    |    |    |
| Midwest                                                        | $                       | 828     |    | $      | 10,262  |   | $ | 44,359  |   |
| Southern                                                       | 621                     |    | 6,702   |   | 14,770  |   |
| Mid-Atlantic                                                   | 3,121                   |    | 7,708   |   | 30,225  |   |
| Total impairment of operating communities (a)                  | $                       | 4,570   |    | $      | 24,672  |   | $ | 89,354  |   |
| Impairment of future communities:                              |                    |    |    |
| Midwest                                                        | $                       | 2,837   |    | $      | 6,892   |   | $ | 1,524   |   |
| Southern                                                       | 3,134                   |    | 8,405   |   | 4,380   |   |
| Mid-Atlantic                                                   | 1,290                   |    | 2,180   |   | — |   |
| Total impairment of future communities (a)                     | $                       | 7,261   |    | $      | 17,477  |   | $ | 5,904   |   |
| Impairment of land held for sale:                              |                    |    |    |
| Midwest                                                        | $                       | — |    | $      | 2,016   |   | $ | 8,727   |   |
| Southern                                                       | 587                     |    | 1,883   |   | 24,554  |   |
| Mid-Atlantic                                                   | 88                      |    | 1,642   |   | 309     |   |
| Total impairment of land held for sale (a)                     | $                       | 675     |    | $      | 5,541   |   | $ | 33,590  |   |
| Option deposits and pre-acquisition costs write-offs:          |                    |    |    |
| Midwest                                                        | $                       | 198     |    | $      | 569     |   | $ | 311     |   |
| Southern (b)                                                   | 160                     |    | 20      |   | 162     |   |
| Mid-Atlantic                                                   | 262                     |    | 1,067   |   | 4,839   |   |
| Total option deposits and pre-acquisition costs write-offs (b) | $                       | 620     |    | $      | 1,656   |   | $ | 5,312   |   |
| Impairment of investments in Unconsolidated LLCs:              |                    |    |    |
| Midwest                                                        | $                       | — |    | $      | 616     |   | $ | 1,413   |   |
| Southern                                                       | 32                      |    | 7,115   |   | 23,039  |   |
| Mid-Atlantic                                                   | —                 |    | — |   | — |   |
| Total impairment of investments in Unconsolidated LLCs (a)     | $                       | 32      |    | $      | 7,731   |   | $ | 24,452  |   |
| Total impairments and write-offs of option deposits and        |                    |    |    |
|   pre-acquisition costs                              | $                       | 13,158  |    | $      | 57,077  |   | $ | 158,612 |   |

|                             |                                                                                                                                                                                |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)     | Amounts are recorded within Impairment of inventory and investment in Unconsolidated limited liability companies in the Company’s Consolidated Statements of Operations. |

|                             |                                                                                                                               |
|-----------------------------|-------------------------------------------------------------------------------------------------------------------------------|
| (b)     | Amounts are recorded within General and administrative expenses in the Company’s Consolidated Statements of Operations. |

----

|                                                     |              |        |        |        |        |        |
|-----------------------------------------------------|--------------|--------|--------|--------|--------|--------|
|                                                | December 31, |
| (In thousands)                                      | 2010         | 2009   |
| Assets:                                             |         |   |
| Single-family lots, land and land development costs | $            | 36,317 |   | $      | 35,534 |   |
| Other assets                                        | 2            |   | 276    |   |
| Total assets                                        | $            | 36,319 |   | $      | 35,810 |   |
| Liabilities and partners’ equity:             |         |   |
| Liabilities:                                        |         |   |
| Notes payable                                       | $            | 3,250  |   | $      | 3,250  |   |
| Other liabilities                                   | 193          |   | 425    |   |
| Total liabilities                                   | 3,443        |   | 3,675  |   |
| Partners’ equity:                             |         |   |
| Company’s equity                              | 10,589       |   | 10,299 |   |
| Other equity                                        | 22,287       |   | 21,836 |   |
| Total partners’ equity                        | 32,876       |   | 32,135 |   |
| Total liabilities and partners’ equity        | $            | 36,319 |   | $      | 35,810 |   |

|                    |                          |        |        |        |        |        |   |         |        |
|--------------------|--------------------------|--------|--------|--------|--------|--------|---|---------|--------|
|               | Years Ended December 31, |
| (In thousands)     | 2010                     | 2009   | 2008   |
| Revenue            | $                        | 634    |   | $      | 77     |   | $ | 2,417   |   |
| Costs and expenses | 13                       |   | 97     |   | 16,143 |   |
| Loss               | $                        | 621    |   | $      | (20    | )      | $ | (13,726 | )      |

----

|                                                       |                          |        |        |        |        |        |   |        |        |
|-------------------------------------------------------|--------------------------|--------|--------|--------|--------|--------|---|--------|--------|
|                                                  | Years Ended December 31, |
| (In thousands)                                        | 2010                     | 2009   | 2008   |
| Warranty accruals, beginning of year                  | $                        | 8,657  |   | $      | 9,518  |   | $ | 12,006 |   |
| Warranty expense on homes delivered during the period | 5,096                    |   | 4,904  |   | 4,791  |   |
| Changes in estimates for pre-existing warranties      | 1,118                    |   | 346    |   | 1,279  |   |
| Settlements made during the period                    | (6,536                   | )      | (6,111 | )      | (8,558 | )      |
| Warranty accruals, end of year                        | $                        | 8,335  |   | $      | 8,657  |   | $ | 9,518  |   |

----

----

|                                                                           |                     |                     |                                |        |        |        |        |
|---------------------------------------------------------------------------|---------------------|---------------------|--------------------------------|--------|--------|--------|--------|
|  Issue Date                                                          |  Maturity Date |  Interest Rate | Principal Amount(in thousands) |
| 7/15/2004                                                                 | 12/1/2022           | 6.00                | %                              |   | 3,945  |   |   |
| 7/15/2004                                                                 | 12/1/2036           | 6.25                | %                              |   | 10,060 |   |   |
| 3/15/2007                                                                 | 5/1/2037            | 5.20                | %                              |   | 6,760  |   |   |
| Total CDD bond obligations issued and outstanding as of December 31, 2010 |                | 20,765              |                           |   |

----

----

|                          |                      |        |        |
|--------------------------|----------------------|--------|--------|
|                     | Debt Maturities |
| Year Ending December 31, | (In thousands)       |
| 2011                     | $                    | 32,197 |   |
| 2012                     | 41,443               |   |
| 2013                     | —              |   |
| 2014                     | —              |   |
| 2015                     | —              |   |
| Total                    | $                    | 73,640 |   |

----

|                 |                          |        |         |        |         |        |   |         |        |
|-----------------|--------------------------|--------|---------|--------|---------|--------|---|---------|--------|
|            | Years Ended December 31, |
| (In thousands)  | 2010                     | 2009   | 2008    |
| Federal         | $                        | (211   | )       | $      | (27,647 | )      | $ | 26,448  |   |
| State and local | (924                     | )      | (3,233  | )      | 3,843   |   |
| Total           | $                        | (1,135 | )       | $      | (30,880 | )      | $ | 30,291  |   |
|            | Year Ended December 31,  |
| (In thousands)  | 2010                     | 2009   | 2007    |
| Current         | $                        | (1,135 | )       | $      | (30,880 | )      | $ | (37,576 | )      |
| Deferred        | —                  |   | — |   | 67,867  |   |
| Total           | $                        | (1,135 | )       | $      | (30,880 | )      | $ | 30,291  |   |

|                                                          |                         |        |        |        |         |        |   |         |        |
|----------------------------------------------------------|-------------------------|--------|--------|--------|---------|--------|---|---------|--------|
|                                                     | Year Ended December 31, |
| (In thousands)                                           | 2010                    | 2009   | 2008   |
| Federal taxes at statutory rate                          | $                       | (9,591 | )      | $      | (32,546 | )      | $ | (75,312 | )      |
| State and local taxes – net of federal tax benefit | (601                    | )      | (2,101 | )      | 2,498   |   |
| Change in unrecognized tax benefit                       | (1,782                  | )      | (1,294 | )      | (1,469  | )      |
| Manufacturing credit                                     | —                 |   | (1,300 | )      | (1,269  | )      |
| Change in valuation allowance                            | 10,797                  |   | 8,220  |   | 108,608 |   |
| Other                                                    | 42                      |   | (1,859 | )      | (2,765  | )      |
| Total                                                    | $                       | (1,135 | )      | $      | (30,880 | )      | $ | 30,291  |   |

|                                                              |                               |        |         |        |         |        |   |       |        |
|--------------------------------------------------------------|-------------------------------|--------|---------|--------|---------|--------|---|-------|--------|
|                                                         |  Year Ended December 31, |
| (In thousands)                                               | 2010                          | 2009   | 2008    |
| Balance at January 1, 2010                                   | $                             | 3,383  |    | $      | 4,677   |   | $ | 6,146 |   |
| Additions based on tax positions related to the current year | —                       |   | — |   | — |   |
| Additions for tax positions of prior years                   | 99                            |   | 139     |   | 471     |   |
| Reductions for tax positions of prior years                  | (1,881                        | )      | (506    | )      | (827    | )      |
| Settlements                                                  | —                       |   | (927    | )      | (1,113  | )      |
| Balance at December 31, 2010                                 | $                             | 1,601  |    | $      | 3,383   |   | $ | 4,677 |   |

----

|                                        |              |         |         |        |         |        |
|----------------------------------------|--------------|---------|---------|--------|---------|--------|
|                                   | December 31, |
| (In thousands)                         | 2010         | 2009    |
| Deferred tax assets:                   |         |    |
| Warranty, insurance and other accruals | $            | 11,870  |    | $      | 12,187  |   |
| Inventory                              | 31,717       |    | 55,303  |   |
| State taxes                            | 80           |    | 17      |   |
| Net operating loss carryforward        | 84,333       |    | 48,775  |   |
| Deferred charges                       | 1,192        |    | 1,870   |   |
| Total deferred tax assets              | 129,192      |    | 118,152 |   |
| Deferred tax liabilities:              |         |    |    |   |
| Depreciation                           | 1,164        |    | 695     |   |
| Prepaid expenses                       | 153          |    | 379     |   |
| Total deferred tax liabilities         | 1,317        |    | 1,074   |   |
| Less valuation allowance               | 127,875      |    | 117,078 |   |
| Net deferred tax asset                 | $            | — |    | $      | — |   |

----

|                                                               |                        |                        |          |        |         |        |         |         |        |   |         |        |
|---------------------------------------------------------------|------------------------|------------------------|----------|--------|---------|--------|---------|---------|--------|---|---------|--------|
|                                                          | December 31, 2010 | December 31, 2009 |
|                                                          | Carrying               | Fair                   | Carrying | Fair   |
|                                                          | Amount                 | Value                  | Amount   | Value  |
| Assets:                                                       |                   |                   |     |   |
| Cash, including restricted cash                               | $                      | 123,131                |     | $      | 123,131 |   | $       | 132,232 |   | $ | 132,232 |   |
| Mortgage loans held for sale                                  | 43,312                 |                   | 43,312   |   | 34,978  |   | 34,978  |    |
| Other assets                                                  | 14,998                 |                   | 15,052   |   | 10,172  |   | 10,050  |    |
| Notes receivable                                              | 919                    |                   | 771      |   | 5,584   |   | 5,584   |    |
| Best-efforts contracts for committed IRLCs and mortgage loans |                   |                   |     |   |    |   |    |    |
| held for sale                                                 | 340                    |                   | 340      |   | 308     |   | 308     |    |
| Forward sale of mortgage-backed securities                    | 121                    |                   | 121      |   | 833     |   | 833     |    |
| Liabilities:                                                  |                   |                   |     |   |    |   |    |    |
| Notes payable - banks                                         | 32,197                 |                   | 32,197   |   | 24,142  |   | 24,142  |    |
| Mortgage notes payable                                        | 5,853                  |                   | 6,564    |   | 6,160   |   | 7,036   |    |
| Senior Notes                                                  | 238,610                |                   | 243,263  |   | 199,424 |   | 187,750 |    |
| Commitments to extend real estate loans                       | 43                     |                   | 43       |   | 145     |   | 145     |    |
| Other liabilities                                             | 38,301                 |                   | 38,301   |   | 51,851  |   | 51,851  |    |
| Off-Balance Sheet Financial Instruments:                      |                   |                   |     |   |    |   |    |    |
| Letters of credit                                             | —                |                   | 627      |   | — |   | 693     |    |

----

|        |                       |                    |                           |
|--------|-----------------------|--------------------|---------------------------|
|   | Midwest               | Southern           | Mid-Atlantic              |
|   | Columbus, Ohio        | Tampa, Florida     | Washington, D.C.          |
|   | Cincinnati, Ohio      | Orlando, Florida   | Charlotte, North Carolina |
|   | Indianapolis, Indiana | Houston, Texas (1) | Raleigh, North Carolina   |
|   | Chicago, Illinois     |               |                      |

|                                                                 |             |         |         |        |         |        |   |          |        |
|-----------------------------------------------------------------|-------------|---------|---------|--------|---------|--------|---|----------|--------|
|                                                            | Years Ended |
|                                                            | 2010        | 2009    | 2008    |
| Revenue:                                                        |        |    |    |
| Midwest homebuilding                                            | $           | 295,096 |    | $      | 258,910 |   | $ | 232,715  |   |
| Southern homebuilding                                           | 89,896      |    | 95,615  |   | 151,643 |   |
| Mid-Atlantic homebuilding                                       | 217,148     |    | 201,366 |   | 202,038 |   |
| Other homebuilding – unallocated (a)                      | —     |    | — |   | 7,131   |   |
| Financial services                                              | 14,237      |    | 14,058  |   | 14,132  |   |
| Total revenue                                                   | $           | 616,377 |    | $      | 569,949 |   | $ | 607,659  |   |
| Operating (loss) income:                                        |        |    |    |   |    |   |
| Midwest homebuilding (b)                                        | $           | 3,294   |    | $      | (17,590 | )      | $ | (73,073  | )      |
| Southern homebuilding (b)                                       | (3,593      | )       | (41,092 | )      | (71,864 | )      |
| Mid-Atlantic homebuilding (b)                                   | 7,004       |    | (7,500  | )      | (41,491 | )      |
| Other homebuilding – unallocated (a)                      | —     |    | — |   | 503     |   |
| Financial services                                              | 6,508       |    | 6,533   |   | 6,010   |   |
| Less: Corporate selling, general and administrative expense (c) | (22,824     | )       | (23,932 | )      | (29,567 | )      |
| Total operating loss                                            | $           | (9,611  | )       | $      | (83,581 | )      | $ | (209,482 | )      |
| Interest expense:                                               |        |    |    |   |    |   |
| Midwest homebuilding                                            | $           | 3,689   |    | $      | 4,043   |   | $ | 5,197    |   |
| Southern homebuilding                                           | 1,520       |    | 1,690   |   | 2,335   |   |
| Mid-Atlantic homebuilding                                       | 3,262       |    | 2,235   |   | 3,209   |   |
| Financial services                                              | 944         |    | 499     |   | 456     |   |
| Total interest expense                                          | $           | 9,415   |    | $      | 8,467   |   | $ | 11,197   |   |
| Other (loss) income (d)                                         | (8,378      | )       | (941    | )      | 5,555   |   |
| Loss from continuing operations before income taxes             | $           | (27,404 | )       | $      | (92,989 | )      | $ | (215,124 | )      |

----

|                                         |             |         |         |        |         |        |   |         |        |
|-----------------------------------------|-------------|---------|---------|--------|---------|--------|---|---------|--------|
|                                    | Years Ended |
|                                    | 2010        | 2009    | 2008    |
| Assets:                                 |        |    |    |   |    |   |
| Midwest homebuilding                    | $           | 224,302 |    | $      | 224,059 |   | $ | 242,066 |   |
| Southern homebuilding                   | 76,116      |    | 80,797  |   | 121,587 |   |
| Mid-Atlantic homebuilding               | 172,297     |    | 141,998 |   | 185,268 |   |
| Financial services                      | 54,694      |    | 52,092  |   | 60,992  |   |
| Corporate                               | 134,485     |    | 164,882 |   | 83,375  |   |
| Total assets                            | $           | 661,894 |    | $      | 663,828 |   | $ | 693,288 |   |
| Investment in Unconsolidated LLCs:      |        |    |    |   |    |   |
| Midwest homebuilding                    | $           | 5,929   |    | $      | 6,051   |   | $ | 6,359   |   |
| Southern homebuilding                   | 4,660       |    | 4,248   |   | 6,771   |   |
| Total investment in Unconsolidated LLCs | $           | 10,589  |    | $      | 10,299  |   | $ | 13,130  |   |
| Depreciation and amortization:          |        |    |    |   |    |   |
| Midwest homebuilding                    | $           | 1,036   |    | $      | 659     |   | $ | 336     |   |
| Southern homebuilding                   | 498         |    | 728     |   | 1,288   |   |
| Mid-Atlantic homebuilding               | 763         |    | 959     |   | 1,028   |   |
| Financial services                      | 390         |    | 395     |   | 471     |   |
| Corporate                               | 2,507       |    | 5,130   |   | 4,631   |   |
| Total depreciation and amortization     | $           | 5,194   |    | $      | 7,871   |   | $ | 7,754   |   |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)     | Other homebuilding – unallocated consists of the net impact in the period due to timing of homes delivered with low down-payment loans (buyers put less than 5% down) funded by the Company’s financial services operations not yet sold to a third party.  In accordance with applicable accounting rules, recognition of such revenue must be deferred until the related loan is sold to a third party.  Refer to the Revenue Recognition policy described in our Application of Critical Accounting Estimates and Policies in Management’s Discussion and Analysis of Financial Condition and Results of Operations for further discussion. |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)     | The years ended December 31, 2010, 2009 and 2008 include the impact of charges relating to the impairment of inventory and investment in Unconsolidated LLCs and the write-off of land deposits and pre-acquisition costs of $13.2 million, $57.1 million and $158.6 million, respectively.  For 2010, 2009 and 2008, these charges reduced operating income by $3.9 million, $20.4 million and $56.3 million in the Midwest region, $4.5 million, $24.1 million and $66.9 million in the Southern region, and $4.8 million, $12.6 million and $35.4 million in the Mid-Atlantic region, respectively. |

|                             |                                                                                                                                                                                                                                                            |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)     | The years ended December 31, 2009 and 2008 include the impact of severance charges of $1.0 million and $3.3 million, respectively.  The year ended December 31, 2008 also includes charges of $3.3 million for corporate asset impairments. |

|                             |                                                                                                                                                                                                                                                                                                |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d)     | Other (loss) income is comprised of the loss on the early extinguishment of debt in the fourth quarter of 2010, the sale of the Company's airplane during the first quarter of 2009, and the gain recognized on the exchange of the Company’s airplane during the first quarter of 2008. |

----

|                                                                                       |        |                              |              |               |              |              |        |         |        |         |        |         |        |   |         |        |
|---------------------------------------------------------------------------------------|--------|------------------------------|--------------|---------------|--------------|--------------|--------|---------|--------|---------|--------|---------|--------|---|---------|--------|
| CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS                                      |
|                                                                                  |   |                         |         |          |         |         |
|                                                                                  |   | Year Ended December 31, 2010 |
|                                                                                  |   |                         | Guarantor    | Non-Guarantor |         |         |
| (In thousands)                                                                        |   | M/I Homes, Inc.              | Subsidiaries | Subsidiaries  | Eliminations | Consolidated |
|                                                                                  |   |                         |         |          |         |         |
| Revenue                                                                               |   | $                            | —      |          | $            | 602,140      |   | $       | 14,237 |    | $      | — |   | $ | 616,377 |   |
| Costs, expenses and other loss:                                                       |   |                         |         |          |         |         |
|   Land and housing                                                          |   | —                      |         | 511,408       |         | —      |   | — |   | 511,408 |   |
|  Impairment of inventory and investment in    Unconsolidated LLCs |   | —                      |         | 12,538        |         | —      |   | — |   | 12,538  |   |
|   General and administrative                                                |   | —                      |         | 45,929        |         | 8,029        |   | — |   | 53,958  |   |
|   Selling                                                                   |   | —                      |         | 48,084        |         | —      |   | — |   | 48,084  |   |
|   Interest                                                                  |   | —                      |         | 8,471         |         | 944          |   | — |   | 9,415   |   |
|   Other loss                                                                |   | 8,378                        |         | —       |         | —      |   | — |   | 8,378   |   |
| Total costs, expenses and other loss                                                  |   | 8,378                        |         | 626,430       |         | 8,973        |   | — |   | 643,781 |   |
|                                                                                  |   |                         |         |          |         |         |
| (Loss) income before income taxes                                                     |   | (8,378                       | )            | (24,290       | )            | 5,264        |   | — |   | (27,404 | )      |
|                                                                                  |   |                         |         |          |         |         |
| (Benefit) provision for income taxes                                                  |   | —                      |         | (3,291        | )            | 2,156        |   | — |   | (1,135  | )      |
|                                                                                  |   |                         |         |          |         |         |
| Equity in subsidiaries                                                                |   | (17,891                      | )            | —       |         | —      |   | 17,891  |   | — |   |
|                                                                                  |   |                         |         |          |         |         |
| Net loss                                                                              |   | $                            | (26,269      | )             | $            | (20,999      | )      | $       | 3,108  |    | $      | 17,891  |   | $ | (26,269 | )      |

|                                                                                       |        |                              |              |               |              |              |        |         |        |         |        |         |        |   |         |        |
|---------------------------------------------------------------------------------------|--------|------------------------------|--------------|---------------|--------------|--------------|--------|---------|--------|---------|--------|---------|--------|---|---------|--------|
|                                                                                  |   | Year Ended December 31, 2009 |
|                                                                                  |   |                         | Guarantor    | Non-Guarantor |         |         |
| (In thousands)                                                                        |   | M/I Homes, Inc.              | Subsidiaries | Subsidiaries  | Eliminations | Consolidated |
|                                                                                  |   |                         |         |          |         |         |
| Revenue                                                                               |   | $                            | —      |          | $            | 555,891      |   | $       | 14,058 |    | $      | — |   | $ | 569,949 |   |
| Costs, expenses and other loss:                                                       |   |                         |         |          |         |         |
|   Land and housing                                                          |   | —                      |         | 494,989       |         | —      |   | — |   | 494,989 |   |
|  Impairment of inventory and investment in    Unconsolidated LLCs |   | —                      |         | 55,421        |         | —      |   | — |   | 55,421  |   |
|   General and administrative                                                |   | —                      |         | 51,312        |         | 7,858        |   | — |   | 59,170  |   |
|   Selling                                                                   |   | —                      |         | 43,950        |         | —      |   | — |   | 43,950  |   |
|   Interest                                                                  |   | —                      |         | 7,968         |         | 499          |   | — |   | 8,467   |   |
|   Other loss                                                                |   | —                      |         | 941           |         | —      |   | — |   | 941     |   |
| Total costs, expenses and other loss                                                  |   | —                      |         | 654,581       |         | 8,357        |   | — |   | 662,938 |   |
|                                                                                  |   |                         |         |          |         |         |
| (Loss) income before income taxes                                                     |   | —                      |         | (98,690       | )            | 5,701        |   | — |   | (92,989 | )      |
|                                                                                  |   |                         |         |          |         |         |
| (Benefit) provision for income taxes                                                  |   | —                      |         | (32,485       | )            | 1,605        |   | — |   | (30,880 | )      |
|                                                                                  |   |                         |         |          |         |         |
| Equity in subsidiaries                                                                |   | (62,109                      | )            | —       |         | —      |   | 62,109  |   | — |   |
|                                                                                  |   |                         |         |          |         |         |
| Net loss                                                                              |   | $                            | (62,109      | )             | $            | (66,205      | )      | $       | 4,096  |    | $      | 62,109  |   | $ | (62,109 | )      |

----

|                                                                                       |        |                              |              |               |              |              |        |         |        |          |        |         |        |   |          |        |
|---------------------------------------------------------------------------------------|--------|------------------------------|--------------|---------------|--------------|--------------|--------|---------|--------|----------|--------|---------|--------|---|----------|--------|
| CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS                                       |
|                                                                                  |   |                         |         |          |         |         |
|                                                                                  |   | Year Ended December 31, 2008 |
|                                                                                  |   |                         | Guarantor    | Non-Guarantor |         |         |
| (In thousands)                                                                        |   | M/I Homes, Inc.              | Subsidiaries | Subsidiaries  | Eliminations | Consolidated |
|                                                                                  |   |                         |         |          |         |         |
| Revenue                                                                               |   | $                            | —      |          | $            | 594,316      |   | $       | 13,343 |     | $      | — |   | $ | 607,659  |   |
| Costs, expenses and other loss:                                                       |   |                         |         |          |         |         |
|   Land and housing                                                          |   | —                      |         | 532,164       |         | —      |   | — |   | 532,164  |   |
|  Impairment of inventory and investment in    Unconsolidated LLCs |   | —                      |         | 153,300       |         | —      |   | — |   | 153,300  |   |
|   General and administrative                                                |   | —                      |         | 68,967        |         | 8,491        |   | — |   | 77,458   |   |
|   Selling                                                                   |   | —                      |         | 54,219        |         | —      |   | — |   | 54,219   |   |
|   Interest                                                                  |   | —                      |         | 10,741        |         | 456          |   | — |   | 11,197   |   |
|   Other income                                                              |   | —                      |         | (5,555        | )            | —      |   | — |   | (5,555   | )      |
| Total costs, expenses and other income                                                |   | —                      |         | 813,836       |         | 8,947        |   | — |   | 822,783  |   |
|                                                                                  |   |                         |         |          |         |         |
| (Loss) income from continuing operations before income taxes                          |   | —                      |         | (219,520      | )            | 4,396        |   | — |   | (215,124 | )      |
|                                                                                  |   |                         |         |          |         |         |
| Provision for income taxes                                                            |   | —                      |         | 29,097        |         | 1,194        |   | — |   | 30,291   |   |
|                                                                                  |   |                         |         |          |         |         |
| Equity in Subsidiaries                                                                |   | (245,415                     | )            | —       |         | —      |   | 245,415 |   | —  |   |
|                                                                                  |   |                         |         |          |         |         |
| Net (loss) income from continuing operations                                          |   | (245,415                     | )            | (248,617      | )            | 3,202        |   | 245,415 |   | (245,415 | )      |
|                                                                                  |   |                         |         |          |         |         |
| Equity in subsidiaries from discontinued operations                                   |   | (33                          | )            | —       |         | —      |   | 33      |   | —  |   |
|                                                                                  |   |                         |         |          |         |         |
| Loss from discontinued operations, net of tax                                         |   | (33                          | )            | (33           | )            | —      |   | 33      |   | (33      | )      |
|                                                                                  |   |                         |         |          |         |         |
| Net (loss) income                                                                     |   | $                            | (245,448     | )             | $            | (248,650     | )      | $       | 3,202  |     | $      | 245,448 |   | $ | (245,448 | )      |

----

|                                                   |        |                        |              |               |              |              |        |          |        |         |        |          |        |   |         |        |
|---------------------------------------------------|--------|------------------------|--------------|---------------|--------------|--------------|--------|----------|--------|---------|--------|----------|--------|---|---------|--------|
| CONDENSED CONSOLIDATING BALANCE SHEET             |
|                                              |   |                   |         |          |         |         |
|                                              |   | December 31, 2010 |
|                                              |   |                   | Guarantor    | Non-Guarantor |         |         |
| (In thousands)                                    |   | M/I Homes, Inc.        | Subsidiaries | Subsidiaries  | Eliminations | Consolidated |
|                                              |   |                   |         |          |         |         |
| ASSETS:                                           |   |                   |         |          |         |         |
| Cash                                              |   | $                      | —      |          | $            | 71,874       |   | $        | 9,334  |    | $      | —  |   | $ | 81,208  |   |
| Restricted cash                                   |   | —                |         | 41,923        |         | —      |   | —  |   | 41,923  |   |
| Mortgage loans held for sale                      |   | —                |         | —       |         | 43,312       |   | —  |   | 43,312  |   |
| Inventory                                         |   | —                |         | 450,936       |         | —      |   | —  |   | 450,936 |   |
| Property and equipment - net                      |   | —                |         | 16,340        |         | 214          |   | —  |   | 16,554  |   |
| Investment in Unconsolidated LLCs                 |   | —                |         | —       |         | 10,589       |   | —  |   | 10,589  |   |
| Investment in subsidiaries                        |   | 418,085                |         | —       |         | —      |   | (418,085 | )      | — |   |
| Intercompany                                      |   | 116,875                |         | (102,884      | )            | (13,991      | )      | —  |   | — |   |
| Income tax receivable                             |   | —                |         | 994           |         | —      |   | —  |   | 994     |   |
| Other assets                                      |   | 7,141                  |         | 6,631         |         | 2,606        |   | —  |   | 16,378  |   |
| TOTAL ASSETS                                      |   | $                      | 542,101      |          | $            | 485,814      |   | $        | 52,064 |    | $      | (418,085 | )      | $ | 661,894 |   |
|                                              |   |                   |         |          |         |         |
| LIABILITIES AND SHAREHOLDERS’ EQUITY        |   |                   |         |
|                                              |   |                   |         |          |         |         |
| LIABILITIES:                                      |   |                   |         |          |         |         |
| Accounts payable                                  |   | $                      | —      |          | $            | 28,631       |   | $        | 399    |    | $      | —  |   | $ | 29,030  |   |
| Customer deposits                                 |   | —                |         | 3,017         |         | —      |   | —  |   | 3,017   |   |
| Other liabilities                                 |   | —                |         | 37,305        |         | 4,811        |   | —  |   | 42,116  |   |
| Community development district obligations        |   | —                |         | 7,112         |         | —      |   | —  |   | 7,112   |   |
| Obligation for consolidated inventory not owned   |   | —                |         | 468           |         | —      |   | —  |   | 468     |   |
| Note payable bank - financial services operations |   | —                |         | —       |         | 32,197       |   | —  |   | 32,197  |   |
| Note payable – other                        |   | —                |         | 5,853         |         | —      |   | —  |   | 5,853   |   |
| Senior notes                                      |   | 238,610                |         | —       |         | —      |   | —  |   | 238,610 |   |
| TOTAL LIABILITIES                                 |   | 238,610                |         | 82,386        |         | 37,407       |   | —  |   | 358,403 |   |
|                                              |   |                   |         |          |         |         |
| Shareholders' equity                              |   | 303,491                |         | 403,428       |         | 14,657       |   | (418,085 | )      | 303,491 |   |
|                                              |   |                   |         |          |         |         |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY  |   | $                      | 542,101      |          | $            | 485,814      |   | $        | 52,064 |    | $      | (418,085 | )      | $ | 661,894 |   |

----

|                                                   |        |                        |              |               |              |              |        |          |        |         |        |          |        |   |         |        |
|---------------------------------------------------|--------|------------------------|--------------|---------------|--------------|--------------|--------|----------|--------|---------|--------|----------|--------|---|---------|--------|
| CONDENSED CONSOLIDATING BALANCE SHEET             |
|                                              |   |                   |         |          |         |         |
|                                              |   | December 31, 2009 |
|                                              |   |                   | Guarantor    | Non-Guarantor |         |         |
| (In thousands)                                    |   | M/I Homes, Inc.        | Subsidiaries | Subsidiaries  | Eliminations | Consolidated |
|                                              |   |                   |         |          |         |         |
| ASSETS:                                           |   |                   |         |          |         |         |
| Cash                                              |   | $                      | —      |          | $            | 96,464       |   | $        | 13,466 |    | $      | —  |   | $ | 109,930 |   |
| Restricted cash                                   |   | —                |         | 22,302        |         | —      |   | —  |   | 22,302  |   |
| Mortgage loans held for sale                      |   | —                |         | —       |         | 34,978       |   | —  |   | 34,978  |   |
| Inventory                                         |   | —                |         | 420,289       |         | —      |   | —  |   | 420,289 |   |
| Property and equipment - net                      |   | —                |         | 18,475        |         | 523          |   | —  |   | 18,998  |   |
| Investment in Unconsolidated LLCs                 |   | —                |         | —       |         | 10,299       |   | —  |   | 10,299  |   |
| Investment in subsidiaries                        |   | 442,976                |         | —       |         | —      |   | (442,976 | )      | — |   |
| Intercompany                                      |   | 80,771                 |         | (66,863       | )            | (13,908      | )      | —  |   | — |   |
| Income tax receivable                             |   | —                |         | 30,135        |         | —      |   | —  |   | 30,135  |   |
| Other assets                                      |   | 2,439                  |         | 11,287        |         | 3,171        |   | —  |   | 16,897  |   |
| TOTAL ASSETS                                      |   | $                      | 526,186      |          | $            | 532,089      |   | $        | 48,529 |    | $      | (442,976 | )      | $ | 663,828 |   |
|                                              |   |                   |         |          |         |         |
| LIABILITIES AND SHAREHOLDERS’ EQUITY        |   |                   |         |
|                                              |   |                   |         |          |         |         |
| LIABILITIES:                                      |   |                   |         |          |         |         |
| Accounts payable                                  |   | $                      | —      |          | $            | 37,780       |   | $        | 482    |    | $      | —  |   | $ | 38,262  |   |
| Customer deposits                                 |   | —                |         | 3,831         |         | —      |   | —  |   | 3,831   |   |
| Other liabilities                                 |   | —                |         | 51,071        |         | 5,355        |   | —  |   | 56,426  |   |
| Community development district obligations        |   | —                |         | 8,204         |         | —      |   | —  |   | 8,204   |   |
| Obligation for consolidated inventory not owned   |   | —                |         | 616           |         | —      |   | —  |   | 616     |   |
| Note payable bank - financial services operations |   | —                |         | —       |         | 24,142       |   | —  |   | 24,142  |   |
| Note payable – other                        |   | —                |         | 6,160         |         | —      |   | —  |   | 6,160   |   |
| Senior notes                                      |   | 199,424                |         | —       |         | —      |   | —  |   | 199,424 |   |
| TOTAL LIABILITIES                                 |   | 199,424                |         | 107,662       |         | 29,979       |   | —  |   | 337,065 |   |
|                                              |   |                   |         |          |         |         |
| Shareholders' equity                              |   | 326,762                |         | 424,427       |         | 18,550       |   | (442,976 | )      | 326,763 |   |
|                                              |   |                   |         |          |         |         |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY  |   | $                      | 526,186      |          | $            | 532,089      |   | $        | 48,529 |    | $      | (442,976 | )      | $ | 663,828 |   |

----

|                                                                                                                     |                              |              |               |              |              |        |         |        |          |        |   |        |        |
|---------------------------------------------------------------------------------------------------------------------|------------------------------|--------------|---------------|--------------|--------------|--------|---------|--------|----------|--------|---|--------|--------|
| CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS                                                                     |
|                                                                                                                |                         |         |          |         |         |
|                                                                                                                | Year Ended December 31, 2010 |
|                                                                                                                |                         | Guarantor    | Non-Guarantor |         |         |
| (In thousands)                                                                                                      | M/I Homes, Inc.              | Subsidiaries | Subsidiaries  | Eliminations | Consolidated |
|                                                                                                                |                         |         |          |         |         |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                               |                         |         |          |         |         |
| Net cash used in operating activities                                                                               | —                      |         | (33,806       | )            | (3,496       | )      | — |   | (37,302  | )      |
|                                                                                                                |                         |         |          |         |         |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                               |                         |         |          |         |         |
| Restricted cash                                                                                                     | —                      |         | (19,585       | )            | —      |   | — |   | (19,585  | )      |
| Purchase of property and equipment                                                                                  | —                      |         | (1,480        | )            | (80          | )      | — |   | (1,560   | )      |
| Investments in and advances to Unconsolidated LLC's                                                                 | —                      |         | —       |         | (1,229       | )      | — |   | (1,229   | )      |
| Distributions from Unconsolidated LLC's                                                                             | —                      |         | —       |         | 13           |   | — |   | 13       |   |
| Net cash used in investing activities                                                                               | —                      |         | (21,065       | )            | (1,296       | )      | — |   | (22,361  | )      |
|                                                                                                                |                         |         |          |         |         |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                               |                         |         |          |         |         |
| Repayment of senior notes, including transaction costs                                                              | (166,088                     | )            | —       |         | —      |   | — |   | (166,088 | )      |
| Proceeds from issuance of senior notes                                                                              | 197,174                      |         | —       |         | —      |   | — |   | 197,174  |   |
| Proceeds from bank borrowings - net                                                                                 | —                      |         | —       |         | 8,055        |   | — |   | 8,055    |   |
| Principal repayments of mortgage notes payable other and  community development district bond obligations | —                      |         | (325          | )            | —      |   | — |   | (325     | )      |
| Intercompany financing                                                                                              | (23,517                      | )            | 30,606        |         | (7,089       | )      | — |   | —  |   |
| Debt issue costs                                                                                                    | (7,568                       | )            | —       |         | (306         | )      | — |   | (7,874   | )      |
| Proceeds from exercise of stock options                                                                             | 12                           |         | —       |         | —      |   | — |   | 12       |   |
| Excess tax benefits from stock-based payment arrangements                                                           | (13                          | )            | —       |         | —      |   | — |   | (13      | )      |
| Net cash provided by financing activities                                                                           | —                      |         | 30,281        |         | 660          |   | — |   | 30,941   |   |
|                                                                                                                |                         |         |          |         |         |
| Net (decrease) increase in cash                                                                                     | —                      |         | (24,590       | )            | (4,132       | )      | — |   | (28,722  | )      |
| Cash balance at beginning of year                                                                                   | —                      |         | 96,464        |         | 13,466       |   | — |   | 109,930  |   |
| Cash balance at end of year                                                                                         | $                            | —      |          | 71,874       |         | $      | 9,334   |   | —  |   | $ | 81,208 |   |

----

|                                                                                                                     |                              |              |               |              |              |        |         |        |         |        |   |         |        |
|---------------------------------------------------------------------------------------------------------------------|------------------------------|--------------|---------------|--------------|--------------|--------|---------|--------|---------|--------|---|---------|--------|
| CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS                                                                     |
|                                                                                                                |                         |         |          |         |         |
|                                                                                                                | Year Ended December 31, 2009 |
|                                                                                                                |                         | Guarantor    | Non-Guarantor |         |         |
| (In thousands)                                                                                                      | M/I Homes, Inc.              | Subsidiaries | Subsidiaries  | Eliminations | Consolidated |
|                                                                                                                |                         |         |          |         |         |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                               |                         |         |          |         |         |
| Net cash provided by operating activities                                                                           | —                      |         | 55,159        |         | 13,322       |   | — |   | 68,481  |   |
|                                                                                                                |                         |         |          |         |         |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                               |                         |         |          |         |         |
| Restricted cash                                                                                                     | —                      |         | (19,155       | )            | —      |   | — |   | (19,155 | )      |
| Purchase of property and equipment                                                                                  | —                      |         | (3,975        | )            | (33          | )      | — |   | (4,008  | )      |
| Proceeds from the sale of property                                                                                  | —                      |         | 7,878         |         | —      |   | — |   | 7,878   |   |
| Investments in and advances to Unconsolidated LLC's                                                                 | —                      |         | —       |         | (5,003       | )      | — |   | (5,003  | )      |
| Distributions from Unconsolidated LLC's                                                                             | —                      |         | —       |         | 809          |   | — |   | 809     |   |
| Net cash used in investing activities                                                                               | —                      |         | (15,252       | )            | (4,227       | )      | — |   | (19,479 | )      |
|                                                                                                                |                         |         |          |         |         |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                               |                         |         |          |         |         |
| Repayments of bank borrowings - net                                                                                 | —                      |         | —       |         | (10,936      | )      | — |   | (10,936 | )      |
| Principal repayments of mortgage notes payable other and  community development district bond obligations | —                      |         | (10,782       | )            | —      |   | — |   | (10,782 | )      |
| Intercompany financing                                                                                              | (50,415                      | )            | 53,525        |         | (3,110       | )      | — |   | — |   |
| Net proceeds from issuance of common stock                                                                          | 52,568                       |         | —       |         | —      |   | — |   | 52,568  |   |
| Debt issue costs                                                                                                    | (2,122                       | )            | —       |         | (196         | )      | — |   | (2,318  | )      |
| Payments on capital lease obligations                                                                               | —                      |         | (91           | )            | —      |   | — |   | (91     | )      |
| Proceeds from exercise of stock options                                                                             | 70                           |         | —       |         | —      |   | — |   | 70      |   |
| Excess tax benefits from stock-based payment arrangements                                                           | (101                         | )            | —       |         | —      |   | — |   | (101    | )      |
| Net cash provided by (used in) financing activities                                                                 | —                      |         | 42,652        |         | (14,242      | )      | — |   | 28,410  |   |
|                                                                                                                |                         |         |          |         |         |
| Net increase (decrease) in cash                                                                                     | —                      |         | 82,559        |         | (5,147       | )      | — |   | 77,412  |   |
| Cash balance at beginning of year                                                                                   | —                      |         | 13,905        |         | 18,613       |   | — |   | 32,518  |   |
| Cash balance at end of year                                                                                         | $                            | —      |          | 96,464       |         | $      | 13,466  |   | — |   | $ | 109,930 |   |

----

|                                                                                                                     |                              |              |               |              |              |        |         |        |          |        |   |        |        |
|---------------------------------------------------------------------------------------------------------------------|------------------------------|--------------|---------------|--------------|--------------|--------|---------|--------|----------|--------|---|--------|--------|
| CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS                                                                     |
|                                                                                                                |                         |         |          |         |         |
|                                                                                                                | Year Ended December 31, 2008 |
|                                                                                                                |                         | Guarantor    | Non-Guarantor |         |         |
| (In thousands)                                                                                                      | M/I Homes, Inc.              | Subsidiaries | Subsidiaries  | Eliminations | Consolidated |
|                                                                                                                |                         |         |          |         |         |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                               |                         |         |          |         |         |
| Net cash provided by operating activities                                                                           | —                      |         | 94,428        |         | 54,447       |   | — |   | 148,875  |   |
|                                                                                                                |                         |         |          |         |         |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                               |                         |         |          |         |         |
| Restricted cash                                                                                                     | —                      |         | —       |         | —      |   | — |   | —  |   |
| Purchase of property and equipment                                                                                  | —                      |         | (4,015        | )            | 68           |   | — |   | (3,947   | )      |
| Proceeds from the sale of property                                                                                  | —                      |         | 9,454         |         | —      |   | — |   | 9,454    |   |
| Investments in and advances to Unconsolidated LLC's                                                                 | —                      |         | —       |         | (5,196       | )      | — |   | (5,196   | )      |
| Distributions from Unconsolidated LLC's                                                                             | —                      |         | —       |         | 431          |   | — |   | 431      |   |
| Net cash provided by (used in) investing activities                                                                 | —                      |         | 5,439         |         | (4,697       | )      | — |   | 742      |   |
|                                                                                                                |                         |         |          |         |         |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                               |                         |         |          |         |         |
| (Repayments of) proceeds from bank borrowings - net                                                                 | (115,000                     | )            | 9,857         |         | (5,322       | )      | — |   | (110,465 | )      |
| Principal repayments of mortgage notes payable other and  community development district bond obligations | —                      |         | (331          | )            | —      |   | — |   | (331     | )      |
| Intercompany financing                                                                                              | 122,020                      |         | (94,699       | )            | (27,321      | )      | — |   | —  |   |
| Debt issue costs                                                                                                    | (1,063                       | )            | —       |         | —      |   | — |   | (1,063   | )      |
| Payments on capital lease obligations                                                                               | —                      |         | (789          | )            | —      |   | — |   | (789     | )      |
| Dividends paid                                                                                                      | (5,935                       | )            | —       |         | —      |   | — |   | (5,935   | )      |
| Proceeds from exercise of stock options                                                                             | 75                           |         | —       |         | —      |   | — |   | 75       |   |
| Excess tax benefits from stock-based payment arrangements                                                           | (97                          | )            | —       |         | —      |   | — |   | (97      | )      |
| Net cash used in financing activities                                                                               | —                      |         | (85,962       | )            | (32,643      | )      | — |   | (118,605 | )      |
|                                                                                                                |                         |         |          |         |         |
| Net increase in cash                                                                                                | —                      |         | 13,905        |         | 17,107       |   | — |   | 31,012   |   |
| Cash balance at beginning of year                                                                                   | —                      |         | —       |         | 1,506        |   | — |   | 1,506    |   |
| Cash balance at end of year                                                                                         | $                            | —      |          | 13,905       |         | $      | 18,613  |   | —  |   | $ | 32,518 |   |

----

|                                                                       |              |               |             |             |         |        |        |         |        |   |         |        |
|-----------------------------------------------------------------------|--------------|---------------|-------------|-------------|---------|--------|--------|---------|--------|---|---------|--------|
|                                                                  | December 31, | September 30, | June 30,    | March 31,   |
|                                                                  | 2010         | 2010          | 2010        | 2010        |
| (In thousands)                                                        | (Unaudited)  | (Unaudited)   | (Unaudited) | (Unaudited) |
| Revenue                                                               | $            | 164,975       |        | $           | 135,609 |   | $      | 196,404 |   | $ | 119,389 |   |
| Gross margin (a)                                                      | $            | 25,265        |        | $           | 25,154  |   | $      | 25,047  |   | $ | 16,965  |   |
| Net loss (b)                                                          | $            | (11,057       | )           | $           | (2,070  | )      | $      | (4,807  | )      | $ | (8,335  | )      |
| Loss per common share:                                                |         |          |        |        |    |   |   |    |
| Basic  (b)                                                  | $            | (0.60         | )           | $           | (0.11   | )      | $      | (0.26   | )      | $ | (0.45   | )      |
| Diluted (b)                                                           | $            | (0.60         | )           | $           | (0.11   | )      | $      | (0.26   | )      | $ | (0.45   | )      |
| Weighted average common shares outstanding  (In thousands): |         |          |        |        |    |   |   |    |
| Basic                                                                 | 18,523       |          | 18,523      |        | 18,523  |   | 18,521 |    |
| Diluted                                                               | 18,523       |          | 18,523      |        | 18,523  |   | 18,521 |    |
|                                                                  |         |          |        |        |
|                                                                  | December 31, | September 30, | June 30,    | March 31,   |
|                                                                  | 2009         | 2009          | 2009        | 2009        |
| (In thousands)                                                        | (Unaudited)  | (Unaudited)   | (Unaudited) | (Unaudited) |
| Revenue                                                               | $            | 204,916       |        | $           | 152,738 |   | $      | 116,146 |   | $ | 96,149  |   |
| Gross margin (a)                                                      | $            | 7,919         |        | $           | 6,360   |   | $      | 7,972   |   | $ | (2,712  | )      |
| Net income (loss) (b)                                                 | $            | 6,996         |        | $           | (21,074 | )      | $      | (19,902 | )      | $ | (28,129 | )      |
| Earnings (loss) per common share:                                     |         |          |        |        |    |   |   |    |
| Basic  (b)                                                  | $            | 0.38          |        | $           | (1.14   | )      | $      | (1.26   | )      | $ | (2.01   | )      |
| Diluted (b)                                                           | $            | 0.37          |        | $           | (1.14   | )      | $      | (1.26   | )      | $ | (2.01   | )      |
| Weighted average common shares outstanding  (In thousands): |         |          |        |        |    |   |   |    |
| Basic                                                                 | 18,519       |          | 18,514      |        | 15,790  |   | 14,027 |    |
| Diluted                                                               | 18,712       |          | 18,514      |        | 15,790  |   | 14,027 |    |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)     | First, second, third and fourth quarters of 2010 include the impact of charges relating to the impairment of inventory and investment in Unconsolidated LLCs, which reduced gross margin by $3.1 million, $6.3 million, $1.8 million and $1.3 million, respectively.  These same charges reduced gross margin in the first, second, third and fourth quarters of 2009 by $10.9 million, $6.6 million, $15.0 million and $22.9 million, respectively. |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)     | First, second, third and fourth quarters of 2010 include the impact of charges relating to the impairment of inventory and investment in Unconsolidated LLCs, the write-off of land deposits and pre-acquisition costs, and charges related to the repair of certain homes in Florida where certain of our subcontractors had purchased imported drywall that may be responsible for accelerated corrosion of certain metals in the home.  These charges increased net loss by $2.4 million, $4.0 million, $(0.3) million and $1.0 million, respectively, and increased loss per common share for those same periods by $0.13, 0.22, (0.02) and $0.05.  First, second, third and fourth quarters of 2009 include the impact of charges relating to the impairment of inventory and investment in Unconsolidated LLCs, the write-off of land deposits and pre-acquisition costs, and charges related to the repair of certain homes in Florida where certain of our subcontractors had purchased imported drywall that may be responsible for accelerated corrosion of certain metals in the home.  These charges reduced (increased) net income (loss) by $9.3 million, $5.7 million, $12.1 million and $15.9 million, respectively, and reduced (increased) earnings (loss) per common share for those same periods by $0.66, 0.36, 0.65 and $0.85. |

|                                 |                                                                                      |
|---------------------------------|--------------------------------------------------------------------------------------|
| Item 9.     | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |

|                                  |                         |
|----------------------------------|-------------------------|
| Item 9A.     | CONTROLS AND PROCEDURES |

----

|                                  |                   |
|----------------------------------|-------------------|
| Item 9B.     | OTHER INFORMATION |

----

|                               |
|-------------------------------|
| /s/ DELOITTE & TOUCHE LLP |
| Deloitte & Touche LLP     |

----

|                                  |                                                        |
|----------------------------------|--------------------------------------------------------|
| Item 10.     | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |

|                                  |                        |
|----------------------------------|------------------------|
| Item 11.     | EXECUTIVE COMPENSATION |

|                                  |                                                                                                |
|----------------------------------|------------------------------------------------------------------------------------------------|
| Item 12.     | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS |

|                                                            |                                                                                         |                                                                           |                                                                                                                                           |         |        |        |           |        |        |
|------------------------------------------------------------|-----------------------------------------------------------------------------------------|---------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|---------|--------|--------|-----------|--------|--------|
| Plan Category                                              | Number ofsecurities tobe issued uponexercise ofoutstandingoptions,warrants andrights(a) | Weighted-averageexercise priceof outstandingoptions,warrants andrights(b) | Number of securitiesremaining available forfuture issuance underequity compensation plans(excluding securitiesreflected in column (a))(c) |
| Equity compensation plans approved by shareholders (1)     | 1,998,136                                                                               |                                                                      |                                                                                                                                      | 23.31   |   |   | 369,454   |   |   |
| Equity compensation plans not approved by shareholders (2) | 114,859                                                                                 |                                                                      |                                                                                                                                      | — |   |   | 643,507   |   |   |
| Total                                                      | 2,112,995                                                                               |                                                                      |                                                                                                                                      | 23.31   |   |   | 1,012,961 |   |   |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)     | Consists of the Company’s 1993 Stock Incentive Plan as Amended (1,602,943 outstanding stock options), which expired in April 2009, the Company’s 2006 Director Equity Incentive Plan (23,153 outstanding stock units), which was terminated in May 2009, and the Company’s 2009 Long-Term Incentive Plan (12,000 outstanding stock units).  The weighted average exercise price relates to the stock options granted under the 1993 Stock Incentive Plan as Amended and the 2009 Long-Term Incentive Plan.  The stock units granted under the 2006 Director Equity Incentive Plan and the 2009 Long-Term Incentive Plan are “full value awards” that were issued at an average unit price of $27.98 and $14.70, respectively, and will be settled at a future date in common shares on a one-for-one basis without the payment of any exercise price. The aggregate number of shares with respect to which awards may be granted under the 2009 Long-Term Incentive Plan as Amended is 700,000 shares plus any shares subject to outstanding awards under the 1993 Stock Incentive Plan as of May 5, 2009 that on or after May 5, 2009 cease for any reason to be subject to such awards other than by reason of exercise or settlement of the awards to the extent they are exercised for or settled in vested and non-forfeitable shares (45,694 shares at December 31, 2010).  Refer to Note 2 of the Company’s Consolidated Financial Statements for further discussion of these plans. |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)     | Consists of the Company’s Director Deferred Compensation Plan and the Company’s Executives’ Deferred Compensation Plan.  At December 31, 2010, the average unit price of the outstanding “phantom stock” units granted under these plans was $20.24.  Pursuant to these plans, our directors and eligible employees may defer the payment of all or a portion of their director fees and annual cash bonuses, respectively, and the deferred amount is converted into phantom stock units which will be settled at a future date in common shares on a one-for-one basis without the payment of any exercise price.  Refer to Note 2 to the Company’s Consolidated Financial Statements for further discussion of these plans.  Neither the Director Deferred Compensation Plan nor the Executives’ Deferred Compensation Plan provides for a specified limit on the number of common shares which may be attributable to participants’ accounts relating to phantom stock units and issued under the terms of these plans.  The number of securities remaining available for future issuance is based on the number of common shares registered under the Registration Statements on Form S-8 maintained for such plans which have not been issued under the plans as of December 31, 2010. |

----

|                                  |                                                                           |
|----------------------------------|---------------------------------------------------------------------------|
| Item 13.     | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |

|                                  |                                        |
|----------------------------------|----------------------------------------|
| Item 14.     | PRINCIPAL ACCOUNTING FEES AND SERVICES |

----

|                                  |                                         |
|----------------------------------|-----------------------------------------|
| Item 15.     | EXHIBITS, FINANCIAL STATEMENT SCHEDULES |

|                                             |                                                                            |                                                                                                   |                                |        |  |
|---------------------------------------------|----------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|--------------------------------|--------|--|
| (a) Documents filed as part of this report. |
|                                        | (1)  The following financial statements are contained in Item 8: |
|                                        |                                                                       |                                                                                              | Page in                        |
|                                        |                                                                       |                                                                                              | this                           |
|                                        |                                                                       | Financial Statements                                                                              | Report                         |
|                                        |                                                                       |                                                                                              |                           |
|                                        |                                                                       | Report of Independent Registered Public Accounting Firm                                           | 54                             |
|                                        |                                                                       | Consolidated Statements of Operations for the Years Ended December 31, 2010, 2009 and 2008        | 55                             |
|                                        |                                                                       | Consolidated Balance Sheets as of December 31, 2010 and 2009                                      | 56                             |
|                                        |                                                                       | Consolidated Statements of Shareholders’ Equity for the Years Ended December 31, 2010, 2009 |                           |
|                                        |                                                                       | and 2008                                                                                          | 57                             |
|                                        |                                                                       | Consolidated Statements of Cash Flows for the Years Ended December 31, 2010, 2009 and 2008        | 58                             |
|                                        |                                                                       | Notes to Consolidated Financial Statements                                                        | 59                             |
|                                        |                                                                       |                                                                                              |                           |
|                                        | (2                                                                         | )                                                                                                 | Financial Statement Schedules: |   |
|                                        |                                                                       |                                                                                              |                           |
|                                        |                                                                       | None required.                                                                                    |                           |
|                                        |                                                                       |
|                                        | (3                                                                         | )                                                                                                 | Exhibits:                      |   |
|                                        |                                                                       |

|               |        |                                                                                                                                                                                                                                                                  |
|---------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ExhibitNumber |   |  Description                                                                                                                                                                                                                                                |
|          |   |                                                                                                                                                                                                                                                             |
| 3.1           |   | Amended and Restated Articles of Incorporation of M/I Homes, Inc., incorporated herein by reference to Exhibit 3.1 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1993 (File No. 1-12434).                                   |
|          |   |                                                                                                                                                                                                                                                             |
| 3.2           |   | Amendment to Article First of the Amended and Restated Articles of Incorporation of M/I Homes, Inc., dated January 9, 2004, incorporated herein by reference to Exhibit 3.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2006. |
|          |   |                                                                                                                                                                                                                                                             |
| 3.3           |   | Amendment to Article Fourth of the Amended and Restated Articles of Incorporation of M/I Homes, Inc., dated March 13, 2007, incorporated herein by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on March 15, 2007.                 |
|          |   |                                                                                                                                                                                                                                                             |
| 3.4           |   | Amended and Restated Regulations of M/I Homes, Inc., incorporated herein by reference to Exhibit 3.4 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1998 (File No. 1-12434).                                                 |
|          |   |                                                                                                                                                                                                                                                             |
| 3.5           |   | Amendment to Article I(f) of the Amended and Restated Regulations of M/I Homes, Inc., incorporated herein by reference to Exhibit 3.1(b) to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2001 (File No. 1-12434).                  |
|          |   |                                                                                                                                                                                                                                                             |
| 3.6           |   | Amendment to Article II(f) of the Amended and Restated Regulations of M/I Homes, Inc., incorporated herein by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on March 13, 2009.                                                      |
|          |   |                                                                                                                                                                                                                                                             |
| 4.1           |   | Specimen certificate representing M/I Homes, Inc.'s common shares, par value $.01 per share, incorporated herein by reference to Exhibit 4 to the Company's Registration Statement on Form S-1, Commission File No. 33-68564.                                    |

----

|     |        |                                                                                                                                                                                                                                                                                                                          |
|-----|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.2 |   | Indenture, dated as of March 24, 2005, by and among M/I Homes, Inc., the guarantors named therein and U.S. Bank National Association, as trustee of M/I Homes, Inc.'s 6.875% Senior Notes due 2012, incorporated herein by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on March 24, 2005. |

|        |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.3    |   | Registration Rights Agreement, dated as of March 24, 2005, by and among M/I Homes, Inc., the guarantors named therein and the initial purchasers named therein, incorporated herein by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed on March 24, 2005.                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.4    |   | Specimen certificate representing M/I Homes, Inc.'s 9.75% Series A Preferred Shares, par value $.01 per share, incorporated herein by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on March 15, 2007.                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.5    |   | Indenture, dated as of November 12, 2010, by and among M/I Homes, Inc., the guarantors named therein and U.S. Bank National Association, as trustee of M/I Homes, Inc.'s 8.625% Senior Notes due 2018, incorporated herein by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on November 12, 2010.                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.6    |   | Registration Rights Agreement, dated as of November 12, 2010, by and among M/I Homes, Inc., the guarantors named therein and the initial purchasers named therein, incorporated herein by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed on November 12, 2010.                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.1*  |   | M/I Homes, Inc. 401(k) Profit Sharing Plan, as amended and restated on November 20, 2007, incorporated herein by reference to Exhibit 10.1 to the Company's Registration Statement on Form S-8 filed on August 27, 2010 (File No. 333-169074).                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.2*  |   | Amendment to the M/I Homes, Inc. 401(k) Profit Sharing Plan, dated December 4, 2008, incorporated herein by reference to Exhibit 10.2 to the Company's Registration Statement on Form S-8 filed on August 27, 2010 (File No. 333-169074).                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.3*  |   | Amendment to the M/I Homes, Inc. 401(k) Profit Sharing Plan, dated September 14, 2009, incorporated herein by reference to Exhibit 10.3 to the Company's Registration Statement on Form S-8 filed on August 27, 2010 (File No. 333-169074).                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.4   |   | Credit Agreement, dated as of June 9, 2010, by and among M/I Homes, Inc., as borrower, the lenders party thereto, PNC Bank, National Association, as administrative agent for the lenders, JPMorgan Chase Bank, N.A. and The Huntington National Bank, as co-syndication agents, and Fifth Third Bank and US Bank National Association, as co-documentation agents, incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on June 14, 2010. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.5   |   | Credit Agreement by and among M/I Financial Corp., as borrower, the lenders party thereto and The Huntington National Bank, as administrative agent, dated as of April 29, 2009, incorporated herein by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2009.                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.6   |   | Amendment No. 1 to Credit Agreement by and among M/I Financial Corp., as borrower, the lenders party thereto and The Huntington National Bank, as administrative agent, dated as of September 23, 2009, incorporated herein by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2009.                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.7   |   | Amendment No. 2 to Credit Agreement by and among M/I Financial Corp., as borrower, the lenders party thereto and The Huntington National Bank, as administrative agent, dated as of December 30, 2009, incorporated herein by reference to Exhibit 10.21 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2009.                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.8   |   | Credit Agreement by and among M/I Financial Corp., as borrower, the lenders party thereto and The Huntington National Bank, as administrative agent, dated as of April 27, 2010, incorporated herein by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2010.                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.9   |   | Master Letter of Credit Facility Agreement by and between U.S. Bank National Association and M/I Homes, Inc., dated as of July 27, 2009, incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on July 30, 2009.                                                                                                                                                                                                                            |

----

|        |        |                                                                                                                                                                                                                                                                                        |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.10  |   | Pledge Agreement by and between Citibank, N.A. and M/I Homes, Inc., dated as of July 27, 2009, incorporated herein by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed on July 30, 2009.                                                                    |
|   |   |                                                                                                                                                                                                                                                                                   |
| 10.11  |   | Letter of Credit Agreement by and between Regions Bank and M/I Homes, Inc., dated as of July 27, 2009, incorporated herein by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K filed on July 30, 2009.                                                            |
|   |   |                                                                                                                                                                                                                                                                                   |
| 10.12  |   | Credit Agreement by and between The Huntington National Bank and M/I Homes, Inc., dated as of July 27, 2009, incorporated herein by reference to Exhibit 10.4 to the Company's Current Report on Form 8-K filed on July 30, 2009.                                                      |
|   |   |                                                                                                                                                                                                                                                                                   |
| 10.13  |   | Amended and Restated Master Letter of Credit Facility Agreement by and between U.S. Bank National Association and M/I Homes, Inc., dated as of August 16, 2010, incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on August 17, 2010. |
|   |   |                                                                                                                                                                                                                                                                                   |
| 10.14  |   | Continuing Agreement for Standby Letters of Credit by and between Citibank, N.A. and M/I Homes, Inc., dated as of August 16, 2010, incorporated herein by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed on August 17, 2010.                              |
|   |   |                                                                                                                                                                                                                                                                                   |
| 10.15  |   | First Amendment to Letter of Credit Agreement by and between Regions Bank and M/I Homes, Inc., dated as of August 16, 2010, incorporated herein by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K filed on August 17, 2010.                                     |
|   |   |                                                                                                                                                                                                                                                                                   |
| 10.16  |   | Amendment No. 1 to Credit Agreement by and between The Huntington National Bank and M/I Homes, Inc., dated as of August 16, 2010, incorporated herein by reference to Exhibit 10.4 to the Company's Current Report on Form 8-K filed on August 17, 2010.                               |

|        |        |                                                                                                                                                                                                                                                                   |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                              |
| 10.17  |   | Continuing Letter of Credit Agreement by and between Wells Fargo Bank, National Association and M/I Homes, Inc., dated as of June 4, 2010, incorporated herein by reference to Exhibit 10.5 to the Company's Current Report on Form 8-K filed on August 17, 2010. |
|   |   |                                                                                                                                                                                                                                                              |
| 10.18* |   | M/I Homes, Inc. 1993 Stock Incentive Plan as Amended, dated April 22, 1999, incorporated herein by reference to Exhibit 4 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 1999 (File No. 1-12434).                                  |
|   |   |                                                                                                                                                                                                                                                              |
| 10.19* |   | First Amendment to M/I Homes, Inc. 1993 Stock Incentive Plan as Amended, dated August 11, 1999, incorporated herein by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 1999 (File No. 1-12434).      |
|   |   |                                                                                                                                                                                                                                                              |
| 10.20* |   | Second Amendment to M/I Homes, Inc. 1993 Stock Incentive Plan as Amended, dated February 13, 2001, incorporated herein by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2002 (File No. 1-12434).        |
|   |   |                                                                                                                                                                                                                                                              |
| 10.21* |   | Third Amendment to M/I Homes, Inc. 1993 Stock Incentive Plan as Amended, dated April 27, 2006, incorporated herein by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2006.                              |
|   |   |                                                                                                                                                                                                                                                              |
| 10.22* |   | Fourth Amendment to M/I Homes, Inc. 1993 Stock Incentive Plan as Amended, effective as of August 28, 2008, incorporated herein by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2008.              |
|   |   |                                                                                                                                                                                                                                                              |
| 10.23* |   | M/I Homes, Inc. Amended and Restated 2006 Director Equity Incentive Plan, effective as of August 28, 2008, incorporated herein by reference to Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2008.              |
|   |   |                                                                                                                                                                                                                                                              |
| 10.24* |   | M/I Homes, Inc. Amended and Restated Director Deferred Compensation Plan, effective as of August 28, 2008, incorporated herein by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2008.              |

----

|        |        |                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.25* |   | M/I Homes, Inc. Amended and Restated Executives' Deferred Compensation Plan, effective as of August 28, 2008, incorporated herein by reference to Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2008.                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.26* |   | Collateral Assignment Split-Dollar Agreement, dated as of September 24, 1997, by and among M/I Homes, Inc., Robert H. Schottenstein and Steven Schottenstein (as successor to Janice K. Schottenstein), as Trustee of the Robert H. Schottenstein 1996 Insurance Trust, incorporated herein by reference to Exhibit 10.28 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1997 (File No. 1-12434).  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.27* |   | Collateral Assignment Split-Dollar Agreement, dated as of September 24, 1997, by and between M/I Homes, Inc. and Phillip Creek, incorporated herein by reference to Exhibit 10.37 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2009.                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.28* |   | Change of Control Agreement between M/I Homes, Inc. and Robert H. Schottenstein, dated as of July 3, 2008, incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on July 3, 2008.                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.29* |   | Change of Control Agreement between M/I Homes, Inc. and Phillip G. Creek, dated as of July 3, 2008, incorporated herein by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed on July 3, 2008.                                                                                                                                                                                                                     |

|        |        |                                                                                                                                                                                                                                                      |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.30* |   | Change of Control Agreement between M/I Homes, Inc. and J. Thomas Mason, dated as of July 3, 2008, incorporated herein by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K filed on July 3, 2008.                               |
|   |   |                                                                                                                                                                                                                                                 |
| 10.31* |   | M/I Homes, Inc. 2009 Annual Incentive Plan, incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on May 11, 2009.                                                                                      |
|   |   |                                                                                                                                                                                                                                                 |
| 10.32* |   | M/I Homes, Inc. 2009 Long-Term Incentive Plan, incorporated herein by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed on May 11, 2009.                                                                                   |
|   |   |                                                                                                                                                                                                                                                 |
| 10.33* |   | First Amendment to M/I Homes, Inc. 2009 Long-Term Incentive Plan, incorporated herein by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K filed on May 11, 2009.                                                                |
|   |   |                                                                                                                                                                                                                                                 |
| 10.34* |   | Form of Stock Units Award Agreement for Directors under the M/I Homes, Inc. 2009 Long-Term Incentive Plan, incorporated herein by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2009. |
|   |   |                                                                                                                                                                                                                                                 |
| 10.35* |   | Form of Nonqualified Stock Option Award Agreement for Employees under the M/I Homes, Inc. 2009 Long-Term Incentive Plan, incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on February 11, 2010.    |
|   |   |                                                                                                                                                                                                                                                 |
| 21     |   | Subsidiaries of M/I Homes, Inc.  (Filed herewith.)                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                 |
| 23     |   | Consent of Deloitte & Touche LLP.  (Filed herewith.)                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                 |
| 24     |   | Powers of Attorney.  (Filed herewith.)                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                 |
| 31.1   |   | Certification by Robert H. Schottenstein, Chief Executive Officer, pursuant to Item 601 of Regulation S-K as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.  (Filed herewith.)                                         |
|   |   |                                                                                                                                                                                                                                                 |
| 31.2   |   | Certification by Phillip G. Creek, Chief Financial Officer, pursuant to Item 601 of Regulation S-K as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.  (Filed herewith.)                                                |

|        |        |                                                                                                                                                                                                          |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 32.1   |   | Certification by Robert H. Schottenstein, Chief Executive Officer, pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  (Filed herewith.) |
|   |   |                                                                                                                                                                                                     |
| 32.2   |   | Certification by Phillip G. Creek, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  (Filed herewith.)        |

----

|               |        |                                                                                                                                                                                                                                          |
|---------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) Exhibits. |
|          |   |                                                                                                                                                                                                                                     |
|          |   | Reference is made to Item 15(a)(3) above for a complete list of exhibits that are filed with this report.  The following is a list of exhibits, included in Item 15(a)(3) above, that are filed concurrently with this report. |

|               |        |                                                                                                                                                                                 |
|---------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ExhibitNumber |   |  Description                                                                                                                                                               |
| 21            |   | Subsidiaries of M/I Homes, Inc.                                                                                                                                                 |
|          |   |                                                                                                                                                                            |
| 23            |   | Consent of Deloitte & Touche LLP.                                                                                                                                           |
|          |   |                                                                                                                                                                            |
| 24            |   | Powers of Attorney.                                                                                                                                                             |
|          |   |                                                                                                                                                                            |
| 31.1          |   | Certification by Robert H. Schottenstein, Chief Executive Officer, pursuant to Item 601 of Regulation S-K as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|          |   |                                                                                                                                                                            |
| 31.2          |   | Certification by Phillip G. Creek, Chief Financial Officer, pursuant to Item 601 of Regulation S-K as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.        |
|          |   |                                                                                                                                                                            |
| 32.1          |   | Certification by Robert H. Schottenstein, Chief Executive Officer, pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.     |
|          |   |                                                                                                                                                                            |
| 32.2          |   | Certification by Phillip G. Creek, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.            |

|                                   |        |                |
|-----------------------------------|--------|----------------|
| (c) Financial statement schedules |
|                              |   |           |
|                              |   | None required. |

----

|                 |                                       |
|-----------------|---------------------------------------|
| M/I Homes, Inc. |
| (Registrant)    |
|            |                                  |
| By:             | /s/Robert H. Schottenstein       |
|            | Robert H. Schottenstein               |
|            | Chairman of the Board,                |
|            | Chief Executive Officer and President |
|            | (Principal Executive Officer)         |

|                                   |        |                                       |
|-----------------------------------|--------|---------------------------------------|
| NAME AND TITLE                    |   | NAME AND TITLE                        |
|                              |   |                                  |
| JOSEPH A. ALUTTO*                 |   | /s/Robert H. Schottenstein            |
| Joseph A. Alutto                  |   | Robert H. Schottenstein               |
| Director                          |   | Chairman of the Board,                |
|                              |   | Chief Executive Officer and President |
| FRIEDRICH K. M. BÖHM*        |   | (Principal Executive Officer)         |
| Friedrich K. M. Böhm         |   |                                  |
| Director                          |   | /s/Phillip G. Creek                   |
|                              |   | Phillip G. Creek                      |
| THOMAS D. IGOE*                   |   | Executive Vice President,             |
| Thomas D. Igoe                    |   | Chief Financial Officer and Director  |
| Director                          |   | (Principal Financial Officer)         |
|                              |   |                                  |
| J. THOMAS MASON*                  |   | /s/Ann Marie W. Hunker                |
| J. Thomas Mason                   |   | Ann Marie W. Hunker                   |
| Executive Vice President, General |   | Vice President, Corporate Controller  |
| Counsel and Director              |   | (Principal Accounting Officer)        |
|                              |   |                                  |
| JEFFREY H. MIRO*                  |   |                                  |
| Jeffrey H. Miro                   |   |                                  |
| Director                          |   |                                  |
|                              |   |                                  |
| NORMAN L. TRAEGER*                |   |                                  |
| Norman L. Traeger                 |   |                                  |
| Director                          |   |                                  |
|                              |   |                                  |
| SHAREN J. TURNEY*                 |   |                                  |
| Sharen J. Turney                  |   |                                  |
| Director                          |   |                                  |

|        |                                    |
|--------|------------------------------------|
| By:    | /s/Phillip G. Creek                |
|   | Phillip G. Creek, Attorney-In-Fact |