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

| 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 1/1000thof      a 9.75% Series A Preferred Share |   | New      York Stock Exchange  |

| None                  |
|-----------------------|
| (Title      of Class) |

|  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                                                                           | 21         |
|          |                                                                                                                                     |       |   |
|          | Item      2.       Properties                                                                         | 21         |
|          |                                                                                                                                     |       |   |
|          | Item      3.       Legal    Proceedings                                                               | 21         |
|          |                                                                                                                                     |       |   |
|          | Item      4.       Submission of Matters to a      Vote of Security Holders                           | 21         |
|          |                                                                                                                                     |       |
|          |                                                                                                                                     |       |   |
| Part      II  |                                                                                                                                     |       |
|          | Item      5.       Market for Registrant’s Common      Equity, Related Shareholder Matters and  | 22         |
|          | Issuer      Purchases of Equity Securities                                                                                               |       |
|          |                                                                                                                                     |       |
|          | Item      6.       Selected Financial      Data                                                       | 24         |
|          |                                                                                                                                     |       |
|          | Item      7.       Management’s Discussion and      Analysis of Financial Condition and Results | 25         |
|          | of      Operations                                                                                                                       |       |
|          |                                                                                                                                     |       |   |
|          | Item      7A.    Quantitative and Qualitative Disclosures About      Market Risk                                     | 49         |
|          |                                                                                                                                     |       |
|          | Item      8.       Financial Statements and      Supplementary Data                                   | 51         |
|          |                                                                                                                                     |       |
|          | Item      9.       Changes in and Disagreements      With Accountants on Accounting and               | 84         |
|          | Financial      Disclosure                                                                                                                |       |
|          |                                                                                                                                     |       |   |
|          | Item      9A.    Controls and Procedures                                                                             | 84         |
|          |                                                                                                                                     |       |   |
|          | Item      9B.    Other Information                                                                                   | 84         |
|          |                                                                                                                                     |       |   |
|          |                                                                                                                                     |       |
| Part      III |                                                                                                                                     |       |   |
|          | Item      10.     Directors, Executive Officers and      Corporate Governance                                   | 86         |
|          |                                                                                                                                     |       |   |
|          | Item      11.     Executive Compensation                                                                        | 86         |
|          |                                                                                                                                     |       |   |
|          | Item      12.     Security Ownership of Certain Beneficial      Owners and Management and                       |       |
|          | Related      Shareholder Matters                                                                                                         | 86         |
|          |                                                                                                                                     |       |   |
|          | Item      13.     Certain Relationships and Related      Transactions, and Director Independence                | 87         |
|          |                                                                                                                                     |       |   |
|          | Item      14.     Principal Accounting Fees and      Services                                                   | 87         |
|          |                                                                                                                                     |       |   |
|          |                                                                                                                                     |       |   |
| Part      IV  |                                                                                                                                     |       |   |
|          | Item      15.     Exhibits and Financial Statement      Schedules                                               | 88         |
|          |                                                                                                                                     |       |   |
|          |                                                                                                                                     |       |   |
| Signatures    | 94                                                                                                                                       |

----

----

| ● | maintaining cash and preserving      liquidity;                                       |
|---------|---------------------------------------------------------------------------------------|
| ● | emphasizing customer service, product design, and      premier locations;             |
| ● | improving affordability through design changes and      other cost reduction efforts; |
| ● | strategically and cautiously investing in new      communities and/or markets; and    |
| ● | obtaining meaningful presence in all of our      markets.                             |

----

----

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

----

----

----

|         | Lots      Owned       |   |            |   |                  |
|--------------|-----------------------|--------|-----------------|--------|-----------------------|
|         | Finished              |   | Lots      Under |   | Undeveloped           |   |   Total      Lots |   |  Lots      Under |   |   |
| Region       | Lots                  |   | Development     |   | Lots                  |   |   Owned |   |  Contract |   |                 Total |
| Midwest      | 1,045                 |   | 254             |   | 2,986                 |   | 4,285 |   | 1,104 |   | 5,389 |
| Florida      |    905 |   | 102             |   |    568 |   | 1,575 |   |    190 |   | 1,765 |
| Mid-Atlantic |    460 |   | 308             |   |    567 |   | 1,335 |   |    825 |   | 2,160 |
| Total        | 2,410                 |   | 664             |   | 4,121                 |   | 7,195 |   | 2,119 |   | 9,314 |

| · | 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;                         |
|---------|-------------------------------------------------|
| ● | availability      of financing for homebuyers;  |
| ● | interest      rates;                            |
| ● | consumer      confidence;                       |
| ● | levels      of new and existing homes for sale; |
| ● | demographic      trends; and                    |
| ● | housing      demand.                            |

----

----

----

| ● | 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.                                     |

----

----

----

----

----

| ITEM      5.  MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER      MATTERS |
|-------------------------------------------------------------------------------------------------------|

|   |             AND ISSUER PURCHASES OF EQUITY    SECURITIES |
|--------|-----------------------------------------------------------------------------------|

| 2009                |   |   | HIGH   |   |   | LOW              |
|---------------------|--------|--------|--------|--------|--------|------------------|
| First      quarter  |   | $      | 12.10  |   | $      | 4.92             |
| Second      quarter |   |   | 18.42  |   |   | 6.80             |
| Third      quarter  |   |   | 17.67  |   |   | 7.87             |
| Fourth      quarter |   |   | 15.66  |   |   |   9.43 |
|                |   |   |   |   |   |             |
| 2008                |   |   |   |   |   |             |
| First      quarter  |   | $      | 19.39  |   | $      |   7.21 |
| Second      quarter |   |   | 20.25  |   |   | 14.28            |
| Third      quarter  |   |   | 26.00  |   |   | 12.62            |
| Fourth      quarter |   |   | 23.15  |   |   |   5.15 |

----

|                                | Period      Ending |              |
|-------------------------------------|--------------------|-------------------|
| Index                               | 12/31/04           | 12/31/05          | 12/31/06 | 12/31/07 | 12/31/08 | 12/31/09 |   |
| M/I      Homes, Inc.                | 100.00             |        73.86 |        69.62 |        19.26 | 19.39 |        19.11 |   |
| S&P      500                    | 100.00             | 104.91            | 121.48 | 128.16 | 80.74 | 102.11 |   |
| S&P      500 Homebuilding Index | 100.00             | 126.59            | 101.27 |        41.63 | 25.43 |        30.09 |   |

|                                 | Total      Number of SharesPurchased |   | AveragePricePaidper      Share |   | Total Number      of Shares      Purchased      as      Part of Publicly      Announced      Program |   | Approximate      Dollar      Value of Shares      that May Yet      Be Purchased      Under      the Program      (a) |
|--------------------------------------|--------------------------------------|--------|--------------------------------|--------|-----------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------|
| October      1 to October 31, 2009   | -                                    |   |   -                  |   | -                                                                                                         |   | $6,715,000                                                                                                            |
| November      1 to November 30, 2009 | -                                    |   |   -                  |   | -                                                                                                         |   | $6,715,000                                                                                                            |
| December      1 to December 31, 2009 | -                                    |   |   -                  |   | -                                                                                                         |   | $6,715,000                                                                                                            |
| Total                                | -                                    |   |   -                  |   | -                                                                                                         |   | $6,715,000                                                                                                            |

| (a)   | As      of February 18, 2010, the Company had purchased a total of 473,300 shares      at an average price of $38.63 per share pursuant to the existing      Board-approved $25 million repurchase program that was publicly announced      on November 10, 2005, and had approximately $6.7 million remaining      available for repurchase under the $25 million repurchase program, which      expires on November 8, 2010.  The indenture governing our Senior      Notes contains a provision that restricts us from repurchasing any shares      when the calculation of the “restricted payment basket,” as defined      therein, falls below zero.  At December 31, 2009, the payment      basket is $(156.0) million and, therefore, we are restricted from      repurchasing any shares.  We will continue to be restricted      until such time that the restricted payments basket has been restored or      our Senior Notes are repaid. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (In      thousands, except per share amounts)                     | 2009   |    | 2008   |   | 2007     |   | 2006   |      | 2005   |
|-------------------------------------------------------------------|--------|---------|--------|--------|----------|--------|--------|-----------|--------|
|                                                              |   |    |   |   |     |   |   |      |   |
| Income      Statement (Year Ended December 31):                   |   |    |   |   |     |   |   |      |   |
|                                                              |   |    |   |   |     |   |   |      |   |
| Revenue                                                           | $      | 569,949 |   | $      | 607,659  |   | $      | 1,016,460 |   | $ | 1,274,145 |   | $ | 1,312,504 |
|                                                              |   |    |   |   |     |   |   |      |   |   |   |   |   |   |
| Gross      margin (b) (c)                                         | $      | 19,539  |   | $      | (77,805  | )      | $      | 35,487    |   | $ | 247,719 |   | $ | 329,917 |
|                                                              |   |    |   |   |     |   |   |      |   |   |   |   |   |   |
| Net      (loss) income from continuingoperations      (b) (c) (d) | $      | (62,109 | )      | $      | (245,415 | )      |   | (92,480   | )      | $ | 29,297 |   | $ | 98,574 |
|                                                              |   |    |   |   |     |   |   |      |   |   |   |   |   |   |
| Discontinued      operation, net of tax (a)                       | $      | -       |   | $      | (33      | )      | $      | (35,646   | )      | $ | 9,578 |   | $ | 2,211 |
|                                                              |   |    |   |   |     |   |   |      |   |   |   |   |   |   |
| Net      (loss) income (b) (c) (d)                                | $      | (62,109 | )      | $      | (245,448 | )      | $      | (128,126  | )      | $ | 38,875 |   | $ | 100,785 |
|                                                              |   |    |   |   |     |   |   |      |   |   |   |   |   |   |
| Preferred      dividends                                          | $      | -       |   | $      | 4,875    |   | $      | 7,313     |   | $ | - |   | $ | - |
|                                                              |   |    |   |   |     |   |   |      |   |   |   |   |   |   |
| Net      (loss) income to common shareholders (b) (c) (d)         | $      | (62,109 | )      | $      | (250,323 | )      | $      | (135,439  | )      | $ | 38,875 |   | $ | 100,785 |
|                                                              |   |    |   |   |     |   |   |      |   |   |   |   |   |   |
| (Loss)      earnings per share to common shareholders:            |   |    |   |   |     |   |   |      |   |   |   |   |   |   |
|    Basic:      (b) (c) (d)                         |   |    |   |   |     |   |   |      |   |   |   |   |   |   |
|      Continuing      operations          | $      | (3.71   | )      | $      | (17.86   | )      | $      | (7.14     | )      | $ | 2.10 |   | $ | 6.89 |
|      Discontinued      operation         | $      | -       |   | $      | -        |   | $      | (2.55     | )      | $ | 0.68 |   | $ | 0.16 |
|        Total                   | $      | (3.71   | )      | $      | (17.86   | )      | $      | (9.69     | )      | $ | 2.78 |   | $ | 7.05 |
|                                                              |   |    |   |   |     |   |   |      |   |   |   |   |   |   |
|    Diluted:      (b) (c) (d)                       |   |    |   |   |     |   |   |      |   |   |   |   |   |   |
|      Continuing      operations          | $      | (3.71   | )      | $      | (17.86   | )      | $      | (7.14     | )      | $ | 2.07 |   | $ | 6.78 |
|      Discontinued      operation         | $      | -       |   | $      | -        |   | $      | (2.55     | )      | $ | 0.67 |   | $ | 0.15 |
|        Total                   | $      | (3.71   | )      | $      | (17.86   | )      | $      | (9.69     | )      | $ | 2.74 |   | $ | 6.93 |
|                                                              |   |    |   |   |     |   |   |      |   |   |   |   |   |   |
| Weighted      average  shares outstanding:              |   |    |   |   |     |   |   |      |   |   |   |   |   |   |
|   Basic                                                 |   | 16,730  |   |   | 14,016   |   |   | 13,977    |   |   | 13,970 |   |   | 14,302 |
|   Diluted                                               |   | 16,730  |   |   | 14,016   |   |   | 13,977    |   |   | 14,168 |   |   | 14,539 |
|                                                              |   |    |   |   |     |   |   |      |   |   |   |   |   |   |
| Dividends      per common share                                   | $      | -       |   | $      | 0.05     |   | $      | 0.10      |   | $ | 0.10 |   | $ | 0.10 |
|                                                              |   |    |   |   |     |   |   |      |   |   |   |   |   |   |
| Balance      Sheet (December 31):                                 |   |    |   |   |     |   |   |      |   |   |   |   |   |   |
|                                                              |   |    |   |   |     |   |   |      |   |   |   |   |   |   |
| Inventory                                                         | $      | 420,289 |   | $      | 516,029  |   | $      | 797,329   |   | $ | 1,092,739 |   | $ | 984,279 |
|                                                              |   |    |   |   |     |   |   |      |   |   |   |   |   |   |
| Total      assets (d)                                             | $      | 663,828 |   | $      | 693,288  |   | $      | 1,117,645 |   | $ | 1,477,079 |   | $ | 1,329,678 |
|                                                              |   |    |   |   |     |   |   |      |   |   |   |   |   |   |
| Notes      payable banks – homebuilding operations          | $      | -       |   | $      | -        |   | $      | 115,000   |   | $ | 410,000 |   | $ | 260,000 |
|                                                              |   |    |   |   |     |   |   |      |   |   |   |   |   |   |
| Note      payable bank – financial services operations      | $      | 24,142  |   | $      | 35,078   |   | $      | 40,400    |   | $ | 29,900 |   | $ | 46,000 |
|                                                              |   |    |   |   |     |   |   |      |   |   |   |   |   |   |
| Notes      payable banks - other                                  | $      | 6,160   |   | $      | 16,300   |   | $      | 6,703     |   | $ | 6,944 |   | $ | 7,165 |
|                                                              |   |    |   |   |     |   |   |      |   |   |   |   |   |   |
| Senior      Notes – net of discount                         | $      | 199,424 |   | $      | 199,168  |   | $      | 198,912   |   | $ | 198,656 |   | $ | 198,400 |
|                                                              |   |    |   |   |     |   |   |      |   |   |   |   |   |   |
| Shareholders’      equity (b) (c) (d)                       | $      | 326,763 |   | $      | 333,061  |   | $      | 581,345   |   | $ | 617,052 |   | $ | 592,568 |

| (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)   | 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 $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, reduced net (loss) income      from continuing operations by $35.4 million, $98.3 million, $96.9 million      and $46.7 million and (loss) earnings per diluted share by $1.31, $7.00,      $6.71 and $3.29 for the years ended December 31, 2009, 2008, 2007 and      2006, respectively. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | 2009      includes the impact of 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, increasing net loss by $7.5 million, or $0.46 per    share. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | 2009      and 2008 net (loss) also reflects an $8.2 million and $108.6 million,      respectively, valuation allowance for deferred tax assets, or $0.73 and      $7.75 per share, respectively. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ITEM      7.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION      AND |
|----------------------------------------------------------------------------------------------------|

|   |              RESULTS OF OPERATIONS |
|--------|-----------------------------------------------------------------------|

| OVERVIEW |
|----------|

| · | 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.                               |

| FORWARD-LOOKING      STATEMENTS |
|---------------------------------|

----

----

| ● | historical      project results such as average sales price and sales pace, if closings      have occurred in the project; |
|---------|----------------------------------------------------------------------------------------------------------------------------|
| ● | competitors’      local 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;                               |
| ● | current      local market economic and demographic conditions and related trends and      forecasts; and                   |
| ● | community-specific      strategies regarding speculativehomes.                                                             |

----

----

----

| ·  | Home      Builder’s Limited Warranty – effective for homes closed after September      30, 2007;                       |
|--------------|------------------------------------------------------------------------------------------------------------------------------------|
| ·  | 30-year      transferable structural warranty – effective for homes closed after April      24, 1998; and                    |
| ·  | 20-year      transferable structural warranty – effective for homes closed between      September 1, 1989 and 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.                                                                                             |

| RESULTS OF      OPERATIONS |
|----------------------------|

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

----

----

| ● | For      the year ended December 31, 2009, total revenue decreased $37.8 million      (6%) to $569.9 million as compared to $607.7 million for the year ended      December 31, 2008.  This decrease is largely attributable to a      decrease of $32.2 million in revenue from outside land sales, from $32.9      million in 2008 to $0.7 million in 2009.  Revenue, however, was      favorably impacted by a 19% increase in homes delivered, from 2,025 in      2008 to 2,409 in 2009, but this increase was partially offset by the      decrease of the average sales price of homes delivered from $274,000 to      $231,000.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| ● | Loss      from continuing operations before income taxes for the year ended December      31, 2009 decreased by $122.1 million (57%), from $215.1 million in 2008 to      $93.0 million in 2009.  During 2009, the Company incurred      charges totaling $57.1 million compared to $158.6 million incurred in 2008      related to the impairment of inventory and investment in Unconsolidated      LLCs and abandoned land transaction costs.  Excluding the      charges related to the impairment of inventory, investment in      Unconsolidated LLCs, and imported drywall charges, our 2009 adjusted      operating gross margin was 15.3% compared to 2008’s adjusted operating      gross margin of 12.4%, which also excludes charges related to the      impairment of inventory and investment in Unconsolidated      LLCs.  Excluding the impact of the above-mentioned impairment      and abandoned land transaction charges, as well as $16.7 million of other      non-operating charges (imported drywall charges of $12.2 million, $3.6      million of other unusual charges, including severance and bad debt      expense, and loss on the sale of our airplane of $0.9 million), the      Company recorded a pre-tax loss from continuing operations of $19.3      million in 2009, which represents a $34.9 million improvement from 2008’s      pre-tax loss from continuing operations of $54.2 million (exclusive of      aforementioned impairments, $5.6 million gain on the sale of the Company’s      airplane, $4.5 million of other unusual charges, including impairment of      the Company’s airplane and bad debt expense, and $3.3 million of      severance).  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.  The      improvement from 2008 was primarily driven by lower selling, general and      administrative expenses.  General and administrative expenses      decreased $18.3 million (24%) from 2008 to 2009.  The decrease      was primarily due to (1) a decrease of $7.0 million in land related      expenses, including abandoned projects and deposit write-offs; (2) a      decrease of $4.8 million in payroll and incentive expenses; (3) a decrease      of $3.8 million in miscellaneous expenses, including expenses related to      the airplane that was sold in the first quarter of 2009; and (4) a      decrease of $2.5 million in professional fees.  Additionally,      selling expenses decreased by $10.3 million (19%) for the year ended      December 31, 2009 when compared to the year ended December 31, 2008,      primarily due to (1) a $4.8 million decrease in expenses related to sales      offices and model homes; (2) a $2.9 million decrease in variable selling      expenses; and (3) a $2.1 million decrease in advertising      expenses. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| ● | New      contracts for 2009 were 2,493, up 33% compared to 1,879 in      2008.  For the year ended December 31, 2009, our cancellation      rate was 19% compared to 27% in 2008.  By region, our      cancellation rates in 2009 versus 2008 were as follows: Midwest – 22% in      2009 and 30% in 2008; Florida – 16% in 2009 and 21% in 2008; and      Mid-Atlantic – 16% in 2009 and 25% in 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| ● | Our      mortgage company’s capture rate increased from 85% for the year ended      December 31, 2008 to 87% for the year ended December 31,      2009.  Capture rate is influenced by financing availability and      can fluctuate up or down from period to period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| ● | We      continue to deal with very weak and ever-changing market conditions that      require us to constantly monitor the value of our inventory and      investments in Unconsolidated LLCs in those markets in which we operate,      in accordance with generally accepted accounting      principles.  During the year ended December 31, 2009, we      recorded $57.1 million of charges relating to the impairment of inventory      and investment in Unconsolidated LLCs and write-off of abandoned land      transaction costs, compared to $158.6 million of charges during the year      ended December 31, 2008.  We generally believe that we will see      a gradual improvement in market conditions over the long      term.  In 2010, we will continue to update our evaluation of the      value of our inventory and investments in Unconsolidated LLCs for      impairment, and could be required to record additional impairment charges,      which would negatively impact earnings should market conditions      deteriorate further or results differ from management’s original      assumptions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| ● | During      2009, we accrued $12.2 million for 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

----

| ● | During      2009, we recorded a net tax benefit of $30.9 million.  This net      benefit consists primarily of the realization of $25.9 million beginning      of the year NOL carryforwards which, due to recent tax legislation, we      were allowed to carry back 5 years.  In addition, as a result of      a 10-year carryback period available for certain of our 2009 losses, we      were able to realize an additional $4.2 million benefit.  We      expect to receive the $25.9 million in the first quarter of 2010 and the      $4.2 million in the fourth quarter of 2010. While our 2009 tax losses      generated an additional $38.9 million of deferred tax assets, we were      required to fully reserve against such benefits as a result of our      cumulative four-year pre-tax lossposition. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                            | Years      Ended |    |
|-----------------------------------------------------------------|------------------|---------|
|                                                            | 2009             |    | 2008 |   | 2007 |   |
|                                                            |             |    |   |   |   |   |
| Gross      margin                                               | $                | 19,539  |   | $ | (77,805 | ) | $ | 35,487 |   |
| Add:                                                            |             |    |   |   |   |   |   |   |   |
|      Impairments                       |             | 55,421  |   |   | 153,300 |   |   | 148,377 |   |
|      Imported      drywall charges     |             | 12,150  |   |   | - |   |   | - |   |
| Adjusted      operating gross margin                            | $                | 87,110  |   | $ | 75,495 |   | $ | 183,864 |   |
|                                                            |             |    |   |   |   |   |   |   |   |
| Loss      from continuing operations before income taxes        | $                | (92,989 | ) | $ | (215,124 | ) | $ | (92,480 | ) |
| Add:                                                            |             |    |   |   |   |   |   |   |   |
|      Impairments      and abandonments |             | 57,077  |   |   | 158,612 |   |   | 151,989 |   |
|      Imported      drywall charges     |             | 12,150  |   |   | - |   |   | - |   |
|      Other      expense (income)       |             | 941     |   |   | (5,555 | ) |   | - |   |
|      Restructuring/other               |             | 3,561   |   |   | 7,859 |   |   | 10,591 |   |
| Adjusted      pre-tax (loss) income from continuing operations  | $                | (19,260 | ) | $ | (54,208 | ) | $ | 70,100 |   |

|                                                                              | Years      Ended |
|-----------------------------------------------------------------------------------|------------------|
|                                                                              | 2009             |   | 2008 |   | 2007 |   |
| Revenue:                                                                          |             |   |   |   |   |   |
|   Midwest      homebuilding                                             | $                | 258,910 |   | $ | 232,715 |   | $ | 358,441 |   |
|   Florida      homebuilding                                             |             | 95,615 |   |   | 151,643 |   |   | 312,930 |   |
|   Mid-Atlantic      homebuilding                                        |             | 201,366 |   |   | 202,038 |   |   | 326,451 |   |
|   Other      homebuilding – unallocated (a)                       |             | - |   |   | 7,131 |   |   | (424 | ) |
|   Financial      services                                               |             | 14,058 |   |   | 14,132 |   |   | 19,062 |   |
| Total      revenue                                                                | $                | 569,949 |   | $ | 607,659 |   | $ | 1,016,460 |   |
|                                                                              |             |   |   |   |   |   |   |   |   |
| Operating      (loss) income:                                                     |             |   |   |   |   |   |   |   |   |
|   Midwest      homebuilding (b)                                         | $                | (17,590 | ) | $ | (73,073 | ) | $ | (10,377 | ) |
|   Florida      homebuilding (b)                                         |             | (41,092 | ) |   | (71,864 | ) |   | (63,117 | ) |
|   Mid-Atlantic      homebuilding (b)                                    |             | (7,500 | ) |   | (41,491 | ) |   | (43,547 | ) |
|   Other      homebuilding – unallocated (a)                       |             | - |   |   | 503 |   |   | 386 |   |
|   Financial      services                                               |             | 6,533 |   |   | 6,010 |   |   | 8,517 |   |
|   Less:      Corporate selling, general and administrative expenses (c) |             | (23,932 | ) |   | (29,567 | ) |   | (27,395 | ) |
| Total      operating loss                                                         | $                | (83,581 | ) | $ | (209,482 | ) | $ | (135,533 | ) |
|                                                                              |             |   |   |   |   |   |   |   |   |
| Interest      expense:                                                            |             |   |   |   |   |   |   |   |   |
|   Midwest      homebuilding                                             | $                | 4,043 |   | $ | 5,197 |   | $ | 4,788 |   |
|   Florida      homebuilding                                             |             | 1,690 |   |   | 2,335 |   |   | 5,877 |   |

----

|                                                     | Years      Ended |
|----------------------------------------------------------|------------------|
|                                                     | 2009             |   | 2008 |   | 2007 |   |
|   Mid-Atlantic      homebuilding               |             | 2,235 |   |   | 3,209 |   |   | 3,815 |   |
|   Financial      services                      |             | 499 |   |   | 456 |   |   | 636 |   |
|   Corporate                                    |             | - |   |   | - |   |   | 227 |   |
| Total      interest expense                              | $                | 8,467 |   | $ | 11,197 |   | $ | 15,343 |   |
|                                                     |             |   |   |   |   |   |   |   |   |
| Other      (loss) income (d)                             |             | (941 | ) |   | 5,555 |   |   | - |   |
|                                                     |
| Loss      from continuing operations before income taxes | $                | (92,989 | ) | $ | (215,124 | ) | $ | (150,876 | ) |
|                                                     |             |   |   |   |   |   |   |   |   |
| Assets:                                                  |             |   |   |   |   |   |   |   |   |
|   Midwest      homebuilding                    | $                | 224,059 |   | $ | 242,066 |   | $ | 354,220 |   |
|   Florida      homebuilding                    |             | 80,797 |   |   | 121,587 |   |   | 241,603 |   |
|   Mid-Atlantic      homebuilding               |             | 141,998 |   |   | 185,268 |   |   | 276,887 |   |
|   Financial      services                      |             | 52,092 |   |   | 60,992 |   |   | 62,411 |   |
|   Corporate                                    |             | 164,882 |   |   | 83,375 |   |   | 167,926 |   |
|   Assets      of discontinued operation        |             | - |   |   | - |   |   | 14,598 |   |
| Total      assets                                        | $                | 663,828 |   | $ | 693,288 |   | $ | 1,117,645 |   |
|                                                     |             |   |   |   |   |   |   |   |   |
| Investment      in Unconsolidated LLCs:                  |             |   |   |   |   |   |   |   |   |
|   Midwest      homebuilding                    | $                | 6,051 |   | $ | 6,359 |   | $ | 15,705 |   |
|   Florida      homebuilding                    |             | 4,248 |   |   | 6,771 |   |   | 24,638 |   |
|   Mid-Atlantic      homebuilding               |             | - |   |   | - |   |   | - |   |
|   Financial      services                      |             | - |   |   | - |   |   | - |   |
| Total      investment in Unconsolidated LLCs             | $                | 10,299 |   | $ | 13,130 |   | $ | 40,343 |   |
|                                                     |             |   |   |   |   |   |   |   |   |
| Depreciation      and amortization:                      |             |   |   |   |   |   |   |   |   |
|   Midwest      homebuilding                    | $                | 659 |   | $ | 336 |   | $ | 543 |   |
|   Florida      homebuilding                    |             | 728 |   |   | 1,288 |   |   | 1,603 |   |
|   Mid-Atlantic      homebuilding               |             | 959 |   |   | 1,028 |   |   | 849 |   |
|   Financial      services                      |             | 395 |   |   | 471 |   |   | 498 |   |
|   Corporate                                    |             | 5,130 |   |   | 4,631 |   |   | 4,495 |   |
| Total      depreciation and amortization                 | $                | 7,871 |   | $ | 7,754 |   | $ | 7,988 |   |

| (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, 2009, 2008 and 2007 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 $57.1      million, $158.6 million and $152.0 million, respectively.  For      2009, 2008 and 2007, these charges reduced operating income by $20.4      million, $56.3 million and $8.8 million in the Midwest region, $24.1      million, $66.9 million and $88.3 million in the Florida region, and $12.6      million, $35.4 million and $54.9 million in the Mid-Atlantic region,      respectively. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | The      years ended December 31, 2009, 2008 and 2007 include the impact of      severance charges of $1.0 million, $3.3 million and $5.4 million,      respectively.  The year ended December 31, 2008 also includes      charges of $3.3 million for corporate asset impairments.  The      year ended December 31, 2007 also includes the write-off of $5.2 million      of intangibles. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Other      (loss) income is comprised of the loss on the sale of the plane 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, 2009 |
|---------------------------------------------|---------------------------|
|                                        |                      |   |   |   |   |   | Corporate, |   |   |   |
|                                        |                      |   |   |   |   |   | Financial      Services |   |   |   |
| (In      thousands)                         | Midwest                   |   | Florida |   | Mid-Atlantic |   | 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 entities |                      | 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 |   |

----

|                                        | At      December 31, 2008 |
|---------------------------------------------|---------------------------|
|                                        |                      |   |   |   |   |   | Corporate, |   |   |   |
|                                        |                      |   |   |   |   |   | Financial      Services |   |   |   |
| (In      thousands)                         | Midwest                   |   | Florida |   | Mid-Atlantic |   | and      Unallocated |   | Total |   |
| Land      purchase deposits                 | $                         | 96 |   | $ | 32 |   | $ | 942 |   | $ | - |   | $ | 1,070 |   |
| Inventory      (a)                          |                      | 232,853 |   |   | 102,500 |   |   | 179,606 |   |   | - |   |   | 514,959 |   |
| Investments      in Unconsolidated entities |                      | 6,359 |   |   | 6,771 |   |   | - |   |   | - |   |   | 13,130 |   |
| Other      assets                           |                      | 2,758 |   |   | 12,284 |   |   | 4,720 |   |   | 144,367 |   |   | 164,129 |   |
| Total      assets                           | $                         | 242,066 |   | $ | 121,587 |   | $ | 185,268 |   | $ | 144,367 |   | $ | 693,288 |   |
|                                        |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (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)                     | 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 |

|                                            | Three      Months Ended |
|-------------------------------------------------|-------------------------|
|                                            | December      31,       |   | September      30, |   | June      30, |   | March      31, |
| (Dollars      in thousands)                     | 2008                    |   | 2008 |   | 2008 |   | 2008 |
| Revenue                                         | $                       | 150,187 |   | $ | 160,385 |   | $ | 141,002 |   | $ | 156,085 |
| Unit      data:                                 |                    |   |   |   |   |   |   |   |   |   |   |
|    New      contracts            |                    | 339 |   |   | 456 |   |   | 530 |   |   | 554 |
|    Homes      delivered          |                    | 554 |   |   | 555 |   |   | 466 |   |   | 450 |
|    Backlog      at end of period |                    | 566 |   |   | 781 |   |   | 880 |   |   | 816 |

----

|                                           | Years      Ended |    |
|------------------------------------------------|------------------|---------|
| (Dollars      in thousands)                    | 2009             |    | 2008 |   | 2007 |   |
| Midwest      Region                            |             |    |   |   |   |   |
| Homes      delivered                           |             | 1,282   |   |   | 937 |   |   | 1,436 |   |
| Average      sales price per home delivered    | $                | 202     |   | $ | 244 |   | $ | 247 |   |
| Revenue      homes                             | $                | 258,818 |   | $ | 228,728 |   | $ | 354,000 |   |
| Revenue      third party land sales            | $                | 92      |   | $ | 3,987 |   | $ | 4,441 |   |
| Operating      loss homes (a)                  | $                | (15,666 | ) | $ | (64,338 | ) | $ | (10,665 | ) |
| Operating      (loss) income land (a)          | $                | (1,924  | ) | $ | (8,735 | ) | $ | 288 |   |
| New      contracts, net                        |             | 1,334   |   |   | 911 |   |   | 1,195 |   |
| Backlog      at end of period                  |             | 417     |   |   | 365 |   |   | 391 |   |
| Average      sales price of homes in backlog   | $                | 241     |   | $ | 230 |   | $ | 273 |   |
| Aggregate      sales value of homes in backlog | $                | 101,000 |   | $ | 84,000 |   | $ | 107,000 |   |
| Number      of active communities              |             | 59      |   |   | 73 |   |   | 76 |   |
|                                           |             |    |   |   |   |   |   |   |   |
| Florida      Region                            |             |    |   |   |   |   |   |   |   |
| Homes      delivered                           |             | 428     |   |   | 474 |   |   | 877 |   |
| Average      sales price per home delivered    | $                | 222     |   | $ | 263 |   | $ | 313 |   |
| Revenue      homes                             | $                | 94,958  |   | $ | 124,314 |   | $ | 274,297 |   |
| Revenue      third party land sales            | $                | 657     |   | $ | 27,329 |   | $ | 38,633 |   |
| Operating      loss homes (a)                  | $                | (39,401 | ) | $ | (47,990 | ) | $ | (28,071 | ) |
| Operating      loss land (a)                   | $                | (1,691  | ) | $ | (23,874 | ) | $ | (35,046 | ) |
| New      contracts, net                        |             | 406     |   |   | 430 |   |   | 505 |   |
| Backlog      at end of period                  |             | 55      |   |   | 77 |   |   | 121 |   |
| Average      sales price of homes in backlog   | $                | 220     |   | $ | 265 |   | $ | 292 |   |
| Aggregate      sales value of homes in backlog | $                | 12,000  |   | $ | 20,000 |   | $ | 35,000 |   |
| Number      of active communities              |             | 21      |   |   | 25 |   |   | 34 |   |
|                                           |             |    |   |   |   |   |   |   |   |
| Mid-Atlantic      Region                       |             |    |   |   |   |   |   |   |   |
| Homes      delivered                           |             | 699     |   |   | 614 |   |   | 860 |   |
| Average      sales price per home delivered    | $                | 288     |   | $ | 327 |   | $ | 362 |   |
| Revenue      homes                             | $                | 201,366 |   | $ | 200,455 |   | $ | 311,195 |   |
| Revenue      third party land sales            | $                | -       |   | $ | 1,583 |   | $ | 15,256 |   |
| Operating      loss homes (a)                  | $                | (5,858  | ) | $ | (41,471 | ) | $ | (31,264 | ) |
| Operating      loss land (a)                   | $                | (1,642  | ) | $ | (20 | ) | $ | (12,283 | ) |
| New      contracts, net                        |             | 753     |   |   | 538 |   |   | 752 |   |
| Backlog      at end of period                  |             | 178     |   |   | 124 |   |   | 200 |   |
| Average      sales price of homes in backlog   | $                | 359     |   | $ | 285 |   | $ | 388 |   |
| Aggregate      sales value of homes in backlog | $                | 64,000  |   | $ | 35,000 |   | $ | 78,000 |   |
| Number      of active communities              |             | 21      |   |   | 30 |   |   | 36 |   |
|                                           |             |    |   |   |   |   |   |   |   |
| Total      Homebuilding Regions                |             |    |   |   |   |   |   |   |   |
| Homes      delivered                           |             | 2,409   |   |   | 2,025 |   |   | 3,173 |   |
| Average      sales price per home delivered    | $                | 231     |   | $ | 274 |   | $ | 296 |   |
| Revenue      homes                             | $                | 555,142 |   | $ | 553,497 |   | $ | 939,492 |   |
| Revenue      third party land sales            | $                | 749     |   | $ | 32,899 |   | $ | 58,330 |   |
| Operating      loss homes (a)                  | $                | (60,925 | ) | $ | (153,799 | ) | $ | (70,000 | ) |
| Operating      loss land (a)                   | $                | (5,257  | ) | $ | (32,629 | ) | $ | (47,041 | ) |
| New      contracts, net                        |             | 2,493   |   |   | 1,879 |   |   | 2,452 |   |
| Backlog      at end of period                  |             | 650     |   |   | 566 |   |   | 712 |   |
| Average      sales price of homes in backlog   | $                | 272     |   | $ | 247 |   | $ | 308 |   |
| Aggregate      sales value of homes in backlog | $                | 177,000 |   | $ | 139,000 |   | $ | 220,000 |   |
| Number      of active communities              |             | 101     |   |   | 128 |   |   | 146 |   |
|                                           |             |    |   |   |   |   |   |   |   |
| Financial      Services                        |             |    |   |   |   |   |   |   |   |
| Number      of loans originated                |             | 2,031   |   |   | 1,623 |   |   | 2,340 |   |
| Value      of loans originated                 | $                | 420,761 |   | $ | 382,992 |   | $ | 586,520 |   |
| Revenue                                        | $                | 14,058  |   | $ | 14,132 |   | $ | 19,062 |   |
| General      and administrative expenses       | $                | 7,525   |   | $ | 8,122 |   | $ | 10,545 |   |
| Interest      expense                          | $                | 499     |   | $ | 456 |   | $ | 636 |   |
| Income      before income taxes                | $                | 6,034   |   | $ | 5,554 |   | $ | 7,881 |   |

| (a)   | Amount      includes impairment and abandonment charges for 2009, 2008 and 2007 as      follows: |
|-----------------|--------------------------------------------------------------------------------------------------|

----

|          | December      31, |
|---------------|-------------------|
| Midwest:      | 2009              |   | 2008 |   | 2007 |   |
| Homes         | $                 | 18,339 |   | $ | 47,604 |   | $ | 8,803 |   |
| Land          |              | 2,016 |   |   | 8,729 |   |   | - |   |
|          |              | 20,355 |   |   | 56,333 |   |   | 8,803 |   |
|          |
| Florida:      |              |   |   |   |   |   |   |   |   |
| Homes         |              | 22,242 |   |   | 42,642 |   |   | 50,802 |   |
| Land          |              | 1,883 |   |   | 24,264 |   |   | 37,468 |   |
|          |              | 24,125 |   |   | 66,906 |   |   | 88,270 |   |
|          |
| Mid-Atlantic: |              |   |   |   |   |   |   |   |   |
| Homes         |              | 10,955 |   |   | 35,063 |   |   | 42,661 |   |
| Land          |              | 1,642 |   |   | 310 |   |   | 12,255 |   |
|          |              | 12,597 |   |   | 35,373 |   |   | 54,916 |   |
|          |
| Total         |              |   |   |   |   |   |   |   |   |
| Homes         |              | 51,536 |   |   | 125,309 |   |   | 102,266 |   |
| Land          |              | 5,541 |   |   | 33,303 |   |   | 49,723 |   |
|          | $                 | 57,077 |   | $ | 158,612 |   | $ | 151,989 |   |

|          | Year      Ended December 31, |
|---------------|------------------------------|
|          | 2009                         |   | 2008 |   | 2007 |
| Midwest:      | 22.2%                        |   | 29.8% |   | 30.9% |
| Florida:      | 15.8%                        |   | 20.7% |   | 45.8% |
| Mid-Atlantic: | 15.5%                        |   | 25.4% |   | 23.3% |
|          |
| Total         | 19.3%                        |   | 26.6% |   | 32.7% |

----

----

----

----

----

| (In      thousands)                               | ExpirationDate | OutstandingBalance                                                                           | AvailableAmount                                                                  |
|---------------------------------------------------|----------------|----------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------|
| Notes      payable banks – homebuilding (a) | 10/6/2010      |    $           -       |   $  24,475                                                  |
| Note      payable bank – financial services | 5/15/2010      |    $  24,142                                                        |   $           - |
| Senior      Notes                                 | 4/1/2012       |    $200,000                                                                   |   $           - |
| Universal      shelf registration (b)             | -              |    $            - |   $194,055                                                             |

| (a)    | The available amount      is in accordance with the borrowing base calculation under the Credit      Facility and can be increased is we secure additional assets or invest      additional amounts in the current pledged assets.  The maximum      Aggregate Commitment amount of the Credit Facility is $150      million.  |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
| (b)    | This shelf      registration is intended to allow us to expediently access capital markets      in the future.  The timing and amount of offerings, if any, will      depend on market and general business  conditions.                                                                                                            |

| ● | requiring      us to maintain tangible net worth (“Minimum Net Worth”) of at least (1)      $100 million plus (2) 50% of consolidated earnings (without deduction for      losses and excluding the effect of any decreases in any deferred tax      valuation allowance) earned for each completed fiscal quarter ending after      December 31, 2008 to the date of determination, excluding any quarter in      which the Consolidated Earnings are less than zero plus (3) the amount of      any reduction or reversal in deferred Tax Valuation Allowance for each      completed fiscal quarter ending after December 31,2008; |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ● | maintaining      a leverage ratio (consolidated indebtedness to consolidated tangible net      worth) not in excess of 2.00 to 1.00 (the “Leverage    Ratio”);                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| ● | requiring      adjusted cash flow from operations to consolidated interest incurred ratio      (the “Adjusted Cash Flow Ratio”) to be greater than 1.50x, or requiring us      to maintain unrestricted cash of more than $25 million;                                                                                                                                                                                                                                                                                                                                                                                                |
| ● | prohibiting      secured indebtedness, other than the Credit Facility and the MIF Credit      Agreement, but including the Company’s $15 million guaranty of the MIF      Credit Agreement, from exceeding $25 million;                                                                                                                                                                                                                                                                                                                                                                                                                     |
| ● | prohibiting      the net book value of our land and lots where construction of a home has      not commenced, less the lesser of 25% of tangible net worth or prior six      month sales times average book value of a finished lot, from exceeding      125% of tangible net worth plus 50% of the aggregate outstanding      subordinated debt (the “Total Land Restriction”);                                                                                                                                                                                                                                                      |
| ● | limiting      the number of unsold housing units and model units that we may have in our      inventory at the end of any fiscal quarter from exceeding the greater of      40% of the number of home closings within the twelve months ending on such      date or 80% of the number of unit closings within the six months ending on      such date (the “Spec and Model Homes Restriction”);                                                                                                                                                                                                                                       |
| ● | limiting      extension of credit on the sale of land to 10% of tangible net worth and      maintain maturity of five years; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| ● | limiting      investment in joint ventures to 25% of tangible net  worth.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

| Financial      Covenant                         |    | Covenant      Requirements                                                                                                                                |              | Actual |
|-------------------------------------------------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|--------|
|                                            |    |                            (dollars in millions) |
| Minimum      Net Worth (a)                      | =       | $                                                                                                                                                         | 119.3             | $      | 324.3 |
| Leverage      Ratio (b)                         | ≤ |                                                                                                                                                      | 2.00      to 1.00 |   | 0.74      to 1.00 |
| Adjusted      Cash Flow Ratio (c)               | ≥ |                                                                                                                                                      | 1.50      to 1.00 |   | 5.62      to 1.00 |
| Permitted      Debt Based on Borrowing Base (d) | ≤ | $                                                                                                                                                         | 35.1              | $      | 10.6 |
| Total      Land Restriction                     | ≤ | $                                                                                                                                                         | 405.4             | $      | 177.1 |
| Spec      and Model Homes Restriction           | ≤ |                                                                                                                                                      | 1,218             |   | 612 |

| (a)   | Minimum      Net Worth (called “Actual Consolidated Tangible Net Worth” in the Credit      Agreement) was calculated based on the stated amount of our consolidated      equity less intangible assets of $2.4 million as of December 31,      2009. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (c)   | If      the adjusted cash flow ratio is below 1.50X, the Company is required to      maintain unrestricted cash in an amount not less than $25      million. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Actual      amount includes letters of credit outstanding under the Credit      Facility. |
|-----------------|-------------------------------------------------------------------------------------------|

----

----

----

|                                                          | 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)    | $                           | 24,142 |   | $ | 24,142 |   | $ | - |   | $ | - |   | $ | - |
| Mortgage      notes payable (including interest)              |                        | 9,024 |   |   | 796 |   |   | 1,590 |   |   | 1,590 |   |   | 5,048 |
| Senior      Notes (including interest)                        |                        | 234,872 |   |   | 13,941 |   |   | 220,931 |   |   | - |   |   | - |
| Obligation      for consolidated inventory not owned (b) |                        | - |   |   | - |   |   | - |   |   | - |   |   | - |
| Operating      leases                                         |                        | 10,561 |   |   | 3,129 |   |   | 5,262 |   |   | 1,330 |   |   | 840 |
| Purchase      obligations (c)                            |                        | 74,170 |   |   | 74,170 |   |   | - |   |   | - |   |   | - |
| Other      short term liabilities                             |                        | 950 |   |   | 950 |   |   | - |   |   | - |   |   | - |
| Land      option agreements (d)                               |                        | - |   |   | - |   |   | - |   |   | - |   |   | - |
| Unrecognized tax      benefits (e)                            |                        | - |   |   | - |   |   | - |   |   | - |   |   | - |
| Total                                                         | $                           | 353,719 |   | $ | 117,128 |   | $ | 227,783 |   | $ | 2,920 |   | $ | 5,888 |

| (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, 2009      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, 2009, the Company has recorded a      liability of $0.6 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) | The      Company has obligations with certain subcontractors and suppliers of raw      materials in the ordinary course of business to meet the commitment to      deliver 650 homes with an aggregate sales price of $176.7      million.  Based on our current housing gross margin of 14.7%,      exclusive of impairment charges, less variable selling costs of 3.9% of      revenue, less costs already incurred on homes in backlog, we estimate      payments totaling approximately $74.2 million to be made in 2010 relating      to those homes. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | The      Company has options and contingent purchase agreements to acquire land and      developed lots with an aggregate purchase price of approximately $81.9      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 theseagreements. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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, 2009, we had $3.4      million of gross unrecognized tax benefits, including $1.0 million of      related accrued interest and $0.3 million of related accrued      penalties.  We are currently under examination by various taxing      jurisdictions and anticipate finalizing the examinations with certain      jurisdictions within the next twelve months.  However, the final      outcome of these examinations is not yet determinable.  The statute      of limitations for our major tax jurisdictions remains open for      examination of tax years 2005 through2009. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

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

----

|                                      | Weighted                      |                                                      |                                                                            |                                                                                              |                                                                                  |                                                                |                                                                                  |                                                      |                                                      |
|-------------------------------------------|-------------------------------|-----------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------|---------------------------------------------------------------------------------------|-----------------------------------------------------------|-----------------------------------------------------------|
|                                      | Average                       |                                                      |                                                                            |                                                                                              |                                                                                  |                                                                |                                                                                  |                                                      | Fair                                                      |
|                                      | Interest                      |                                                      | Value                                                                           |
| (Dollars      in thousands)               | Rate                          |   2010                                          |   2011                                                                |   2012                                                                                  | 2013                                                                                  | 2014                                                                | Thereafter                                                                            | Total                                                     | 12/31/09                                                  |
| ASSETS:                                   |                          |                                                      |                                                                            |                                                                                              |                                                                                  |                                                                |                                                                                  |                                                      |                                                      |
| Mortgage      loans held for sale:        |                          |                                                      |                                                                            |                                                                                              |                                                                                  |                                                                |                                                                                  |                                                      |                                                      |
|   Fixed      rate               |     4.77% |   $36,768                                       |   $         -            |           $         -                 |  $           -            |  $     -                              |     $        -            | $  36,768                                       |  $      34,675                                       |
|   Variable      rate            |  3.88                    |          316 |                   - |                -                                     |               - |         -                   |               - |          316 |          303 |
|                                      |                          |                                                      |                                                                            |                                                                                              |                                                                                  |                                                                |                                                                                  |                                                      |                                                      |
| LIABILITIES:                              |                          |                                                      |                                                                            |                                                                                              |                                                                                  |                                                                |                                                                                  |                                                      |                                                      |
| Long-term      debt – fixed rate    |     6.91% |   $    307                  |   $     332                                  | $200,360                                                                                          |  $       391                                  |  $      424                                                    |     $4,346                                                        | $206,160                                                  | $194,786                                                  |
| Long-term      debt – variable rate |     5.25% |    24,142                                  |              - |                      - |              -       |            - |              -       |     24,142                            |     24,142                            |
|                                      |                          |                                                      |                                                                            |                                                                                              |                                                                                  |                                                                |                                                                                  |                                                      |                                                      |

----

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

----

----

|                                                                                 | Years      Ended |
|--------------------------------------------------------------------------------------|------------------|
| (In      thousands, except per share amounts)                                        | 2009             |   | 2008 |   | 2007 |   |
|                                                                                 |             |   |   |   |   |   |
| Revenue                                                                              | $                | 569,949 |   | $ | 607,659 |   | $ | 1,016,460 |   |
| Costs,      expenses and other loss (income):                                        |             |   |   |   |   |   |   |   |   |
|    Land      and housing                                              |             | 494,989 |   |   | 532,164 |   |   | 832,596 |   |
|    Impairment      of inventory and investment in Unconsolidated LLCs |             | 55,421 |   |   | 153,300 |   |   | 148,377 |   |
|    General      and administrative                                    |             | 59,170 |   |   | 77,458 |   |   | 93,049 |   |
|    Selling                                                            |             | 43,950 |   |   | 54,219 |   |   | 77,971 |   |
|    Interest                                                           |             | 8,467 |   |   | 11,197 |   |   | 15,343 |   |
|    Other      loss (income)                                           |             | 941 |   |   | (5,555 | ) |   | - |   |
| Total      costs, expenses and other income                                          |             | 662,938 |   |   | 822,783 |   |   | 1,167,336 |   |
|                                                                                 |             |   |   |   |   |   |   |   |   |
| Loss      from continuing operations before income taxes                             |             | (92,989 | ) |   | (215,124 | ) |   | (150,876 | ) |
|                                                                                 |             |   |   |   |   |   |   |   |   |
| (Benefit)      provision for income taxes                                            |             | (30,880 | ) |   | 30,291 |   |   | (58,396 | ) |
|                                                                                 |             |   |   |   |   |   |   |   |   |
| Loss      from continuing operations                                                 |             | (62,109 | ) |   | (245,415 | ) |   | (92,480 | ) |
|                                                                                 |             |   |   |   |   |   |   |   |   |
| Discontinued      operation, net of tax                                              |             | - |   |   | (33 | ) |   | (35,646 | ) |
|                                                                                 |             |   |   |   |   |   |   |   |   |
| Net      loss                                                                        |             | (62,109 | ) |   | (245,448 | ) |   | (128,126 | ) |
|                                                                                 |             |   |   |   |   |   |   |   |   |
| Preferred      dividends                                                             |             | - |   |   | 4,875 |   |   | 7,313 |   |
|                                                                                 |             |   |   |   |   |   |   |   |   |
| Net      loss to common shareholders                                                 | $                | (62,109 | ) | $ | (250,323 | ) | $ | (135,439 | ) |
|                                                                                 |             |   |   |   |   |   |   |   |   |
| Loss      per common share:                                                          |             |   |   |   |   |   |   |   |   |
|   Basic:                                                                   |             |   |   |   |   |   |   |   |   |
|     Continuing      operations                                   | $                | (3.71 | ) | $ | (17.86 | ) | $ | (7.14 | ) |
|     Discontinued      operation                                  |             | - |   |   | - |   |   | (2.55 | ) |
|     Basic      loss                                              | $                | (3.71 | ) | $ | (17.86 | ) | $ | (9.69 | ) |
|   Diluted:                                                                 |             |   |   |   |   |   |   |   |   |
|     Continuing      operations                                   | $                | (3.71 | ) | $ | (17.86 | ) | $ | (7.14 | ) |
|     Discontinued      operation                                  |             | - |   |   | - |   |   | (2.55 | ) |
|     Diluted      loss                                            | $                | (3.71 | ) | $ | (17.86 | ) | $ | (9.69 | ) |
|                                                                                 |             |   |   |   |   |   |   |   |   |
| Weighted      average shares outstanding:                                            |             |   |   |   |   |   |   |   |   |
|    Basic                                                              |             | 16,730 |   |   | 14,016 |   |   | 13,977 |   |
|    Diluted                                                            |             | 16,730 |   |   | 14,016 |   |   | 13,977 |   |
|                                                                                 |             |   |   |   |   |   |   |   |   |
| Dividends      per common share                                                      | $                | - |   | $ | 0.05 |   | $ | 0.10 |   |

----

----

|                                                                                                                                 | December      31, |
|--------------------------------------------------------------------------------------------------------------------------------------|-------------------|
| (Dollars      in thousands, except par values)                                                                                       | 2009              |   | 2008 |   |
|                                                                                                                                 |              |   |   |   |
| ASSETS:                                                                                                                              |              |   |   |   |
| Cash                                                                                                                                 | $                 | 109,930 |   | $ | 32,518 |   |
| Restricted      cash                                                                                                                 |              | 22,302 |   |   | 6,658 |   |
| Mortgage      loans held for sale                                                                                                    |              | 34,978 |   |   | 37,772 |   |
| Inventory                                                                                                                            |              | 420,289 |   |   | 516,029 |   |
| Property      and equipment - net                                                                                                    |              | 18,998 |   |   | 27,732 |   |
| Investment      in Unconsolidated limited liability companies                                                                        |              | 10,299 |   |   | 13,130 |   |
| Income      tax receivable                                                                                                           |              | 30,135 |   |   | 39,456 |   |
| Other      assets                                                                                                                    |              | 16,897 |   |   | 19,993 |   |
| TOTAL      ASSETS                                                                                                                    | $                 | 663,828 |   | $ | 693,288 |   |
|                                                                                                                                 |              |   |   |   |   |   |
| LIABILITIES      AND SHAREHOLDERS’ EQUITY                                                                                      |              |   |   |   |   |   |
|                                                                                                                                 |              |   |   |   |   |   |
| LIABILITIES:                                                                                                                         |              |   |   |   |   |   |
| Accounts      payable                                                                                                                | $                 | 38,262 |   | $ | 27,542 |   |
| Customer      deposits                                                                                                               |              | 3,831 |   |   | 3,506 |   |
| Other      liabilities                                                                                                               |              | 56,426 |   |   | 62,049 |   |
| Community      development district obligations                                                                                      |              | 8,204 |   |   | 11,035 |   |
| Obligation      for consolidated inventory not owned                                                                                 |              | 616 |   |   | 5,549 |   |
| Note      payable bank – financial services operations                                                                         |              | 24,142 |   |   | 35,078 |   |
| Notes      payable - other                                                                                                           |              | 6,160 |   |   | 16,300 |   |
| Senior      notes – net of discount of $576 and $832, respectively, at December 31,      2009 and 2008                         |              | 199,424 |   |   | 199,168 |   |
| TOTAL      LIABILITIES                                                                                                               |              | 337,065 |   |   | 360,227 |   |
|                                                                                                                                 |              |   |   |   |   |   |
| 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 and 17,626,123 |              | 221 |   |   | 176 |   |
|    shares,      respectively, at December 31, 2009 and 2008                                                           |              |   |   |   |   |   |
| Additional      paid-in capital                                                                                                      |              | 137,492 |   |   | 82,146 |   |
| Retained      earnings                                                                                                               |              | 163,847 |   |   | 225,956 |   |
| Treasury      shares – at cost – 3,580,987 and 3,602,141 shares, respectively, at      December 31, 2009 and 2008        |              | (71,122 | ) |   | (71,542 | ) |
| TOTAL      SHAREHOLDERS’ EQUITY                                                                                                |              | 326,763 |   |   | 333,061 |   |
|  TOTAL      LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                          | $                 | 663,828 |   | $ | 693,288 |   |

----

----

|                                                                      | Preferred      Shares |   | Common      Shares |   | Additional  |       |   |   |    |   | Total    |    |
|---------------------------------------------------------------------------|-----------------------|--------|--------------------|--------|-------------|------------|--------|--------|---------|--------|----------|---------|
| (Dollars      in thousands, except per                                    | Shares                |   |               |   | Shares      |       |   |   | Paid-In |   | Retained |    | Treasury |   | Shareholders’ |   |
| share      amounts)                                                       | Outstanding           |   | Amount             |   | Outstanding |       | Amount |   | Capital |   | Earnings |    | Shares |   | Equity |   |
| Balance      at December 31, 2006                                         | -                     |   | $             | -      |        | 13,920,748 |   | $      | 176     |   | $        | 76,282  |   | $ | 614,186 |   | $ | (73,592 | ) | $ | 617,052 |   |
|    Net      loss                                           | -                     |   |               | -      |        | -          |   |   | -       |   |     | -       |   |   | (128,126 | ) |   | - |   |   | (128,126 | ) |
|    Preferred shares      issued, net of                    |
|      issuance      costs of      $3,675          | 4,000                 |   |               | 96,325 |        | -          |   |   | -       |   |     | -       |   |   | - |   |   | - |   |   | 96,325 |   |
|    Dividends      on preferred shares,                     |                  |   |               |   |        |       |   |   |    |   |     |    |   |   |   |   |   |   |   |   |   |   |
|      $609,375      per share                     | -                     |   |               | -      |        | -          |   |   | -       |   |     | -       |   |   | (7,313 | ) |   | - |   |   | (7,313 | ) |
|    Dividends      on common shares,                        |                  |   |               |   |        |       |   |   |    |   |     |    |   |   |   |   |   |   |   |   |   |   |
|      $0.10      per share                        | -                     |   |               | -      |        | -          |   |   | -       |   |     | -       |   |   | (1,408 | ) |   | - |   |   | (1,408 | ) |
|    Income      tax benefit from stock                      |                  |   |               |   |        |       |   |   |    |   |     |    |   |   |   |   |   |   |   |   |   |   |
|      options      and deferred                   |                  |   |               |   |        |       |   |   |    |   |     |    |   |   |   |   |   |   |   |   |   |   |
|        compensation      distributions | -                     |   |               | -      |        | -          |   |   | -       |   |     | 72      |   |   | - |   |   | - |   |   | 72 |   |
|    Stock      options exercised                            | -                     |   |               | -      |        | 37,400     |   |   | -       |   |     | 62      |   |   | - |   |   | 742 |   |   | 804 |   |
|    Restricted      shares issued, net of                   |                  |   |               |   |        |       |   |   |    |   |     |    |   |   |   |   |   |   |   |   |   |   |
|      forfeitures                                 | -                     |   |               | -      |        | 3,001      |   |   | -       |   |     | (60     | ) |   | - |   |   | 60 |   |   | - |   |
|    Share-based      compensation                           |                  |   |               |   |        |       |   |   |    |   |     |    |   |   |   |   |   |   |   |   |   |   |
|      expense                                     | -                     |   |               | -      |        | -          |   |   | -       |   |     | 3,167   |   |   | - |   |   | - |   |   | 3,167 |   |
|    Deferral      of executive and                          |                  |   |               |   |        |       |   |   |    |   |     |    |   |   |   |   |   |   |   |   |   |   |
|      director      compensation                  | -                     |   |               | -      |        | -          |   |   | -       |   |     | 772     |   |   | - |   |   | - |   |   | 772 |   |
|    Executive      and director deferred                    |                  |   |               |   |        |       |   |   |    |   |     |    |   |   |   |   |   |   |   |   |   |   |
|      compensation      distributions             | -                     |   |               | -      |        | 43,641     |   |   | -       |   |     | (867    | ) |   | - |   |   | 867 |   |   | - |   |
| 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 |   |

----

----

|                                                                                                 | Years      Ended |
|------------------------------------------------------------------------------------------------------|------------------|
| (In      thousands)                                                                                  | 2009             |   | 2008 |   | 2007 |   |
| OPERATING      ACTIVITIES:                                                                           |             |   |   |   |   |   |
| Net      loss                                                                                        | $                | (62,109 | ) | $ | (245,448 | ) | $ | (128,126 | ) |
| Adjustments      to reconcile net loss to net cash provided by operating      activities:            |             |   |   |   |   |   |   |   |   |
| Inventory      valuation adjustments and abandoned land transaction      write-offs                  |             | 49,346 |   |   | 134,160 |   |   | 196,952 |   |
| Impairment      of investment in Unconsolidated limited liabilitycompanies                           |             | 7,731 |   |   | 24,452 |   |   | 13,125 |   |
| Impairment      of goodwill and intangible assets                                                    |             | - |   |   | - |   |   | 5,175 |   |
| Impairment      of property and equipment                                                            |             | - |   |   | 3,283 |   |   | - |   |
| Mortgage      loan originations                                                                      |             | (420,761 | ) |   | (382,992 | ) |   | (586,520 | ) |
| Proceeds      from the sale of mortgage loans                                                        |             | 420,943 |   |   | 405,107 |   |   | 586,846 |   |
| Fair      value adjustment of mortgage loans held for sale                                           |             | 2,612 |   |   | (2,395 | ) |   | 487 |   |
| Net      loss (gain) from property disposals                                                         |             | 951 |   |   | (5,524 | ) |   | 373 |   |
| Bad      debt expense                                                                                |             | 2,523 |   |   | 1,255 |   |   | - |   |
| Depreciation                                                                                         |             | 5,244 |   |   | 6,197 |   |   | 5,912 |   |
| Amortization      of intangibles, debt discount and debt issue costs                                 |             | 2,627 |   |   | 1,557 |   |   | 2,081 |   |
| Stock-based      compensation expense                                                                |             | 3,111 |   |   | 2,983 |   |   | 3,167 |   |
| Deferred      income tax benefit                                                                     |             | (8,220 | ) |   | (40,740 | ) |   | (28,144 | ) |
| Deferred      tax asset valuation allowance                                                          |             | 8,220 |   |   | 108,607 |   |   | - |   |
| Income      tax receivable (payable)                                                                 |             | 9,321 |   |   | 14,211 |   |   | (53,667 | ) |
| Excess      tax expense (benefit) from stock-based paymentarrangements                               |             | 101 |   |   | 97 |   |   | (72 | ) |
| Equity      in undistributed loss of limited liability companies                                     |             | 14 |   |   | 431 |   |   | 892 |   |
| Write-off      of unamortized debt discount and financing costs                                      |             | 554 |   |   | 1,059 |   |   | 534 |   |
| Change      in assets and liabilities:                                                               |             |   |   |   |   |   |   |   |   |
|          Cash      held in escrow                       |             | 3,511 |   |   | 14,597 |   |   | 37,720 |   |
| Inventory                                                                                            |             | 37,221 |   |   | 161,087 |   |   | 180,517 |   |
| Other      assets                                                                                    |             | (34 | ) |   | 8,695 |   |   | (930 | ) |
| Accounts      payable                                                                                |             | 10,720 |   |   | (42,882 | ) |   | (10,776 | ) |
| Customer      deposits                                                                               |             | 325 |   |   | (4,798 | ) |   | (11,110 | ) |
| Accrued      compensation                                                                            |             | (2,169 | ) |   | (2,848 | ) |   | (12,257 | ) |
| Other      liabilities                                                                               |             | (3,301 | ) |   | (11,276 | ) |   | 32 |   |
| Net      cash provided by operating activities                                                       |             | 68,481 |   |   | 148,875 |   |   | 202,211 |   |
| INVESTING      ACTIVITIES:                                                                           |             |   |   |   |   |   |   |   |   |
| Restricted      cash                                                                                 |             | (19,155 | ) |   | - |   |   | - |   |
| Purchase      of property and equipment                                                              |             | (4,008 | ) |   | (3,947 | ) |   | (4,461 | ) |
| Proceeds      from the sale of property                                                              |             | 7,878 |   |   | 9,454 |   |   | - |   |
| Investment      in Unconsolidated limited liability companies                                        |             | (5,003 | ) |   | (5,196 | ) |   | (9,978 | ) |
| Return      of investment from Unconsolidated limited liability    companies                         |             | 809 |   |   | 431 |   |   | 578 |   |
| Net      cash (used in) provided by investing activities                                             |             | (19,479 | ) |   | 742 |   |   | (13,861 | ) |
| FINANCING      ACTIVITIES:                                                                           |             |   |   |   |   |   |   |   |   |
| Repayments      of bank borrowings - net                                                             |             | (10,936 | ) |   | (110,465 | ) |   | (284,500 | ) |
| Principal      repayments of mortgage notes payable and community    development                     |             |   |   |   |   |   |   |   |   |
|   district      bond obligations                                                           |             | (10,782 | ) |   | (331 | ) |   | (509 | ) |
| Net      proceeds from issuance of common stock                                                      |             | 52,568 |   |   | -  |   |   | -  |   |
| Proceeds      from preferred shares issuance – net of issuance costs      of  $3,675 |             | - |   |   | - |   |   | 96,325 |   |
| Debt      issue costs                                                                                |             | (2,318 | ) |   | (1,063 | ) |   | (847 | ) |
| Payments      on capital lease obligations                                                           |             | (91 | ) |   | (789 | ) |   | (984 | ) |
| Dividends      paid                                                                                  |             | - |   |   | (5,935 | ) |   | (8,721 | ) |
| Proceeds      from exercise of stock options                                                         |             | 70 |   |   | 75 |   |   | 804 |   |
| Excess      tax (benefit) expense from stock-based paymentarrangements                               |             | (101 | ) |   | (97 | ) |   | 72 |   |
| Net      cash provided by (used in) financing activities                                             |             | 28,410 |   |   | (118,605 | ) |   | (198,360 | ) |
| Net      increase (decrease) in cash                                                                 |             | 77,412 |   |   | 31,012 |   |   | (10,010 | ) |
| Cash      balance at beginning of year                                                               |             | 32,518 |   |   | 1,506 |   |   | 11,516 |   |
| Cash      balance at end of year                                                                     | $                | 109,930 |   | $ | 32,518 |   | $ | 1,506 |   |
| SUPPLEMENTAL      DISCLOSURE OF CASH FLOW INFORMATION:                                               |             |   |   |   |   |   |   |   |   |
| Cash      paid during the year for:                                                                  |             |   |   |   |   |   |   |   |   |
| Interest      – net of amount capitalized                                                      | $                | 5,541 |   | $ | 3,455 |   | $ | 16,272 |   |
| Income      taxes                                                                                    | $                | 201 |   | $ | 525 |   | $ | 10,246 |   |
| NON-CASH      TRANSACTIONS DURING THE YEAR:                                                          |             |   |   |   |   |   |   |   |   |
| Community      development district infrastructure                                                   | $                | (2,189 | ) | $ | (1,304 | ) | $ | (6,899 | ) |
| Consolidated      inventory not owned                                                                | $                | (4,933 | ) | $ | (1,884 | ) | $ | 2,407 |   |
| Capital      lease obligations                                                                       | $                | - |   | $ | - |   | $ | (1,457 | ) |
| Distribution      of single-family lots from Unconsolidated limited liability      companies         | $                | (22 | ) | $ | 9,969 |   | $ | 7,912 |   |
| Non-monetary      exchange of fixed assets                                                           | $                | - |   | $ | 13,000 |   | $ | - |   |
| Contribution      of property to Unconsolidated limited liability companies                          | $                | - |   | $ | - |   | $ | 958 |   |
| Deferral      of executive and director compensation                                                 | $                | 163 |   | $ | 138 |   | $ | 772 |   |
| Executive      and director deferred stock distributions                                             | $                | 211 |   | $ | 271 |   | $ | 867 |   |

----

----

----

|                                                 | Year      Ended December 31, |
|------------------------------------------------------|------------------------------|
|                                                 | 2009                         |   | 2008 |   | 2007 |   |
| Capitalized      interest, beginning of year         | $                            | 25,838 |   | $ | 29,212 |   | $ | 29,492 |   |
| Interest      capitalized to inventory               |                         | 9,552 |   |   | 9,593 |   |   | 18,118 |   |
| Capitalized      interest charged to cost of sales   |                         | (11,720 | ) |   | (12,967 | ) |   | (18,398 | ) |
| Capitalized      interest, end of year               | $                            | 23,670 |   | $ | 25,838 |   | $ | 29,212 |   |
|                                                 |
| Interest      incurred – continuing operations | $                            | 18,019 |   | $ | 20,790 |   | $ | 33,461 |   |

----

|                                                                                           | Year      Ended December 31, |
|------------------------------------------------------------------------------------------------|------------------------------|
|                                                                                           | 2009                         |   | 2008 |   |
| Land,      building and improvements                                                           | $                            | 11,823 |   | $ | 11,823 |   |
| Office      furnishings, leasehold improvements, computer equipment and computer      software |                         | 24,524 |   |   | 21,542 |   |
| Transportation      and construction equipment                                                 |                         | 404 |   |   | 10,015 |   |
| Property      and equipment                                                                    |                         | 36,751 |   |   | 43,380 |   |
| Accumulated      depreciation                                                                  |                         | (17,753 | ) |   | (15,648 | ) |
| Property      and equipment, net                                                               | $                            | 18,998 |   | $ | 27,732 |   |

|                                                                                           | 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 –effective for homes closed after September 30,      2007;                        |
|--------------|------------------------------------------------------------------------------------------------------------------------------------|
| ·  | 30-year      transferable structural warranty – effective for homes closed after April      24, 1998; and                    |
| ·  | 20-year      transferable structural warranty – effective for homes closed between      September 1, 1989 and April 24,1998. |

----

----

| Year      Ended December 31,                      |     |
|--------------------------------------------------------|----------|
| (In      thousands, except per share amounts)          | 2009     |   | 2008 |   | 2007 |   |
|                                                   | Loss     |   | Shares |   | EPS |   | Loss |   | Shares |   | EPS |   | Income |   | Shares |   | EPS |   |
| Basic      loss from continuing                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   operations                                 | $(62,109 | ) |   |   |   |   | $(245,415 | ) |   |   |   |   | $(92,480 | ) |   |   |   |   |
| Less:      preferred stock dividends                   | -        |   |   |   |   |   | 4,875 |   |   |   |   |   | 7,313 |   |   |   |   |   |
| Loss      to common                                    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   shareholders      from continuing          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    operations                           | $(62,109 | ) | 16,730 |   | $(3.71 | ) | $(250,290 | ) | 14,016 |   | $(17.86 | ) | $(99,793 | ) | 13,977 |   | $(7.14 | ) |
|                                                   |
| Effect      of dilutive securities:                    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Stock      options awards            |     |   | - |   |   |   |   |   | - |   |   |   |   |   | - |   |   |   |
|    Deferred      compensation awards    |     |   | - |   |   |   |   |   | - |   |   |   |   |   | - |   |   |   |
| Diluted      loss                                      |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    to      common shareholders from     |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     continuing      operations     | $(62,109 | ) | 16,730 |   | $(3.71 | ) | $(250,290 | ) | 14,016 |   | $(17.86 | ) | $(99,793 | ) | 13,977 |   | $(7.14 | ) |
|                                                   |
| Anti-dilutive      stock equivalent awards             |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    not      included in the calculation |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    of      diluted loss per share       |     |   | 1,723 |   |   |   |   |   | 1,386 |   |   |   |   |   | 1,159 |   |   |   |

| ● | 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 |   | Weighted      Average      Exercise      Price |   | Weighted      Average      Remaining Contractual Term (Years) |   | AggregateIntrinsic      Value (a) (In thousands) |
|--------------------------------------------------------------|--------------------------------------|--------|------------------------------------------------|--------|---------------------------------------------------------------|--------|-------------------------------------------------------|
| Options      outstanding at December 31, 2008                | 1,191,200                            |   | $32.98                                         |   | 7.05                                                          |   | $           41               |
|   Granted                                          | 501,904                              |   |          7.85                   |   |                                                          |   |                                                  |
|   Exercised                                        | (10,500                              | )      |          6.69                   |   |                                                          |   |                                                  |
|   Forfeited                                        | (58,561                              | )      |        24.63                              |   |                                                          |   |                                                  |
| Options      outstanding at December 31, 2009                | 1,624,043                            |   | $25.69                                         |   | 7.01                                                          |   | $1,237                                                |
|                                                         |
| Options      vested or expected to vest at December 31, 2009 | 1,552,343                            |   | $24.82                                         |   | 6.96                                                          |   | $1,181                                                |
|                                                         |
| Options      exercisable at December 31, 2009                | 882,902                              |   | $35.10                                         |   | 5.74                                                          |   | $        117                                |

| (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,                          |
|---------------------------------------------------------------------------------------|-------------------------------------------------------|
|                                                                                  | 2009                                                  | 2008 | 2007 |
| Expected      dividend yield                                                          |         0.00% |        0.40% |         0.25% |
| Risk-free      interest rate                                                          |         1.99% |        2.71% |         4.80% |
| Expected      volatility                                                              |       44.66%            |      41.98% |         33.9% |
| Expected      term (in years)                                                         |        6.0         |      6.2 |       5.0 |
| Weighted      average grant date fair value of options granted during the      period |    $      3.54                         |  $7.61 |              $12.60 |

|                                                                                  | Year      Ended December 31, 2009                                                                                                                                                                   |
|---------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Expected      dividend yield                                                          |                               0.00%           |
| Risk-free      interest rate                                                          |                               1.99%           |
| Expected      volatility                                                              |                                  45.70%                      |
| Expected      term (in years)                                                         |                                      5.0 |
| Weighted      average grant date fair value of options granted during the      period |                                 $ 3.30                            |

----

|                                                                                  | Year      Ended December 31, |
|---------------------------------------------------------------------------------------|------------------------------|
|                                                                                  | 2009                         |   | 2008 |   | 2007 |
| Expected      dividend yield                                                          | -                            |   | - |   | 0.25% |
| Risk-free      interest rate                                                          | -                            |   | - |   | 4.84% |
| Expected      volatility                                                              | -                            |   | - |   | 31.9% |
| Expected      term (in years)                                                         | -                            |   | - |   |                   3.0 |
| Weighted      average grant date fair value of options granted during the      period | -                            |   | - |   |               $9.19 |

|                                                  | Shares                                |   | Weighted      Average      Grant Date      Fair Value   |
|-------------------------------------------------------|---------------------------------------|--------|---------------------------------------------------------|
| Nonvested      restricted shares at December 31, 2008 | 1,830                                 |   | $33.86                                                  |
|   Granted                                   |       - |   |          - |
|   Vested                                    |   (915)                     |   |   33.86                                       |
|   Forfeited                                 |       - |   |          - |
| Nonvested      restricted shares at December 31, 2009 |   915                       |   | $33.86                                                  |

----

|                                                                                                                               | December      31, |
|------------------------------------------------------------------------------------------------------------------------------------|-------------------|
|                                                                                                                               | 2009              |   | 2008 |
|   Single-family      lots, land and land development costs                                                               | $                 | 232,127 |   | $ | 333,651 |
|   Land      held for sale                                                                                                |              | 4,300 |   |   | 2,804 |
|   Homes      under construction                                                                                          |              | 158,998 |   |   | 150,949 |
|   Model      homes and furnishings - at cost (less accumulated      depreciation:  December 31, 2009 - $3,069; |              |   |   |   |   |
|  December      31, 2008 - $2,130)                                                                                             |              | 14,726 |   |   | 12,928 |
|   Community      development district infrastructure                                                                     |              | 8,186 |   |   | 10,376 |
|   Land      purchase deposits                                                                                            |              | 1,336 |   |   | 1,070 |
|   Consolidated      inventory not owned                                                                                  |              | 616 |   |   | 4,251 |
|   Total      inventory                                                                                                   | $                 | 420,289 |   | $ | 516,029 |

----

|                    | December      31, |
|-------------------------|-------------------|
| (in      thousands)     | 2009              |   | 2008 |
| Homebuilding            | $                 | 96,464 |   | $ | 13,905 |
| Financial      services |              | 13,466 |   |   | 18,613 |
| Unrestricted      cash  |              | 109,930 |   |   | 32,518 |
| Restricted      cash    |              | 22,302 |   |   | 6,658 |
| Total      cash         | $                 | 132,232 |   | $ | 39,176 |

----

|                                             | Fair      Value                     |   | Quoted      Prices in Active |   |                                |   | Significant               |
|--------------------------------------------------|-------------------------------------|--------|------------------------------|--------|-------------------------------------|--------|---------------------------|
|                                             | Measurements                        |   | Markets      for Identical   |   | Significant      Other              |   | Unobservable              |
| Description      of Financial Instrument         | December      31,                   |   | Assets                       |   | Observable      Inputs              |   | Inputs                    |
| (in      thousands)                              | 2009                                |   | (Level      1)               |   | (Level      2)                      |   | (Level      3)            |
| Mortgage      loans held for sale                | $(1,148)                            |   | $  -               |   | $(1,148)                            |   | $  -            |
| Forward      sales of mortgage-backed securities |      833   |   |     -    |   |      833   |   |     - |
| Interest      rate lock commitments              |      (145) |   |     -    |   |      (145) |   |     - |
| Best-efforts      contracts                      |           308   |   |     -    |   |     308         |   |     - |
| Total                                            |  $  (152)            |   | $  -               |   |  $  (152)            |   | $  -            |

----

|                                             | Fair      Value                                    |   | Quoted      Prices in Active |   |                                               |   | Significant               |
|--------------------------------------------------|----------------------------------------------------|--------|------------------------------|--------|----------------------------------------------------|--------|---------------------------|
|                                             | Measurements                                       |   | Markets      for Identical   |   | Significant      Other                             |   | Unobservable              |
| Description      of Financial Instrument         | December      31,                                  |   | Assets                       |   | Observable      Inputs                             |   | Inputs                    |
| (in      thousands)                              | 2008                                               |   | (Level      1)               |   | (Level      2)                                     |   | (Level      3)            |
| Mortgage      loans held for sale                | $      1,464                                       |   | $  -               |   | $      1,464                                       |   | $  -            |
| Forward      sales of mortgage-backed securities |    (1,104)                          |   |     -    |   |    (1,104)                          |   |     - |
| Interest      rate lock commitments              |       638            |   |     -    |   |       638            |   |     - |
| Best-efforts      contracts                      |         73 |   |     -    |   |         73 |   |     - |
| Total                                            | $      1,071                                       |   | $  -               |   | $      1,071                                       |   | $  -            |

| ● | historical      project results such as average sales price and sales pace, if closings      have occurred in the project; |
|---------|----------------------------------------------------------------------------------------------------------------------------|
| ● | competitors’      local 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;                               |
| ● | current      local market economic and demographic conditions and related trends and      forecasts; and                   |
| ● | community-specific      strategies regarding speculativehomes.                                                             |

----

----

| 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      (a) |
|-----------------------------------------------------------|----------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|--------|----------------------------------------------------|--------|----------------------------|
| Inventory      (b)                                        | $75,523                                            |   | $              -                                              |   | $              -              |   | $75,523                                            |   | $42,693                    |
| Investment      in Unconsolidated LLCs (c)                |          7,660                      |   | $              -                                              |   | $              -                   |   |          7,660                      |   |          7,731   |
| Total      fair value measurements                        | $83,183                                            |   | $              -                                              |   | $              -                   |   | $83,183                                            |   | $50,424                    |

| (a)   | Represents      total losses recorded during the year ended December 31,    2009. |
|-----------------|-----------------------------------------------------------------------------------|

| (b)   | Inventory,      with a carrying value of $118.2 million was written down to fair value of      $75.5 million, resulting in an impairment charge of $42.7 million, which      was included in impairment of inventory and investment in Unconsolidated      LLCs in the Company’s Consolidated Statement of Operations for year ended      December 31, 2009.  There were additional impairment charges of      $5.0 million related to homes closed during the year ended December 31,      2009, and therefore are not included in the carrying  value. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Investments      in Unconsolidated LLCs with an aggregate carrying value of $15.4 million      were written down to their fair value of $7.7 million, resulting in an      impairment charge of $7.7 million, which is included in impairment of      inventory and investment in Unconsolidated LLCs in the Company’s      Consolidated Statement of Operations for the year ended December 31,      2009. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                             | Asset      DerivativesAt      December 31, 2009 |                                        | Liability      DerivativesAt      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 |

| Description      of Derivatives                  | Year      EndedDecember      31, 2009(in      thousands) |   | Location      of Gain (Loss) Recognized on Derivatives |
|--------------------------------------------------|----------------------------------------------------------|--------|--------------------------------------------------------|
| Forward      sales of mortgage-backed securities | $1,937                                                   |   | Financial      Services Revenue                        |
| Interest      rate lock commitments              |           (783)                           |   | Financial      Services Revenue                        |
| Best-efforts      contracts                      |           235                             |   | Financial      Services Revenue                        |
| Total      gain (loss) recognized on derivatives | $1,389                                                   |   |                                                   |

----

|                                                                     | Year      Ended December 31, |
|--------------------------------------------------------------------------|------------------------------|
| (In      thousands)                                                      |                         | 2009 |   | 2008 |   | 2007 |
| Impairment      of operating communities:                                |                         |   |   |   |   |   |
|   Midwest                                                      | $                            | 10,262 | $ |   44,358 | $ |     6,600 |
|   Florida                                                      |                         | 6,702 |   |   14,771 |   |   22,985 |
|   Mid-Atlantic                                                 |                         | 7,708 |   |   30,225 |   |   33,691 |
| Total      impairment of operating communities (a)                       | $                            | 24,672 | $ |   89,354 | $ |   63,276 |
| Impairment      of future communities:                                   |                         |   |   |   |   |   |
|   Midwest                                                      | $                            | 6,892 | $ |     1,524 | $ |     1,527 |
|   Florida                                                      |                         | 8,405 |   |     4,380 |   |   12,619 |
|   Mid-Atlantic                                                 |                         | 2,180 |   |            - |   |     6,923 |
| Total      impairment of future communities (a)                          | $                            | 17,477 | $ |     5,904 | $ |   21,069 |
| Impairment      of land held for sale:                                   |                         |   |   |   |   |   |
|   Midwest                                                      | $                            | 2,016 | $ |     8,727 | $ |            - |
|   Florida                                                      |                         | 1,883 |   |   24,554 |   |   37,701 |
|   Mid-Atlantic                                                 |                         | 1,642 |   |        309 |   |   13,206 |
| Total      impairment of land held for sale (a)                          | $                            | 5,541 | $ |   33,590 | $ |   50,907 |
| Option      deposits and pre-acquisition costs write-offs:               |                         |   |   |   |   |   |
|   Midwest                                                      | $                            | 569 | $ |        311 | $ |        676 |
|   Florida      (b)                                             |                         | 20 |   |        162 |   |     1,840 |
|   Mid-Atlantic                                                 |                         | 1,067 |   |     4,839 |   |     1,096 |
| Total      option deposits and pre-acquisition costs write-offs (c)      | $                            | 1,656 | $ |     5,312 | $ |     3,612 |
| Impairment      of investments in Unconsolidated LLCs:                   |                         |   |   |   |   |   |
|   Midwest                                                      | $                            | 616 | $ |     1,413 | $ |            - |
|   Florida                                                      |                         | 7,115 |   |   23,039 |   |   13,125 |
|   Mid-Atlantic                                                 |                         |             - |   |            - |   |            - |
| Total      impairment of investments in Unconsolidated LLCs (a)          | $                            | 7,731 | $ |   24,452 | $ |   13,125 |
|                                                                     |
|   Total      impairments and write-offs of option deposits and |                         |   |   |   |   |   |
|     pre-acquisition      costs (d)                   | $                            | 57,077 | $ | 158,612 | $ | 151,989 |

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

| (b)   | Includes the Company’s $0.8 million share of the      write-off of an option deposit in 2007 that is included in Equity in      undistributed loss of limited liability companies in the Company’s      Consolidated Statements of CashFlows. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (d) | Total      impairment excludes impairment of our West Palm Beach, Florida division of      $58.9 million for the year ended December 31, 2007, which is included in      discontinued operation. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                 | December      31, |
|----------------------------------------------------------------------|-------------------|
| (In      thousands)                                                  |              | 2009 |   | 2008 |
| Assets:                                                              |              |   |   |   |
|   Single-family      lots, land and land development costs | $                 | 35,534 | $ | 41,255 |
|   Other      assets                                        |              | 276 |   |    1,829 |
| Total      assets                                                    | $                 | 35,810 | $ | 43,084 |
| Liabilities      and partners’ equity:                         |              |   |   |   |
| Liabilities:                                                         |              |   |   |   |
|   Notes      payable                                       | $                 | 3,250 | $ | 11,678 |
|   Other      liabilities                                   |              | 425 |   |       687 |
| Total      liabilities                                               |              | 3,675 |   | 12,365 |
| Partners’      equity:                                         |              |   |   |   |
|   Company’s      equity                              |              | 10,299 |   | 13,130 |
|   Other      equity                                        |              | 21,836 |   | 17,589 |
| Total      partners’ equity                                    |              | 32,135 |   | 30,719 |
| Total      liabilities and partners’ equity                    | $                 | 35,810 | $ | 43,084 |

|                    | Years      Ended December 31, |
|-------------------------|-------------------------------|
| (In      thousands)     | 2009                          |   | 2008 |   | 2007 |   |
| Revenue                 | $                             | 77 |   | $ | 2,417 |   | $ | 1,081 |   |
| Costs      and expenses |                          | 97 |   |   | 16,143 |   |   | 2,713 |   |
| Loss                    | $                             | (20 | ) | $ | (13,726 | ) | $ | (1,632 | ) |

----

|                                                       | Years      Ended December 31, |
|------------------------------------------------------------|-------------------------------|
| (In      thousands)                                        | 2009                          |   | 2008 |   | 2007 |   |
| Warranty      accruals, beginning of year                  | $                             | 9,518 |   | $ | 12,006 |   | $ | 14,095 |   |
| Warranty      expense on homes delivered during the period |                          | 4,904 |   |   | 4,791 |   |   | 7,709 |   |
| Changes      in estimates for pre-existing warranties      |                          | 346 |   |   | 1,279 |   |   | 18 |   |
| Settlements      made during the period                    |                          | (6,111 | ) |   | (8,558 | ) |   | (9,816 | ) |
| Warranty      accruals, end of year                        | $                             | 8,657 |   | $ | 9,518 |   | $ | 12,006 |   |

----

----

|  Issue      Date                                                               |  Maturity      Date |  Interest      Rate | Principal      Amount(in      thousands) |
|-------------------------------------------------------------------------------------|--------------------------|--------------------------|------------------------------------------|
| 7/15/2004                                                                           | 12/1/2022                | 6.00%                    | $  4,166                       |
| 7/15/2004                                                                           | 12/1/2036                | 6.25%                    |   10,060                       |
| 3/15/2007                                                                           |        5/1/2037     | 5.20%                    |          6,880            |
| Total      CDD bond obligations issued and outstanding as of December 31,      2009 | $21,106                  |

----

----

|                          | Debt Maturities |
|-------------------------------|----------------------|
| Year      Ending December 31, | (In      thousands)  |
| 2010                          | $                    | 24,142 |
| 2011                          |                 | - |
| 2012                          |                 | 200,000 |
| 2013                          |                 | - |
| 2014                          |                 | - |
| Total                         | $                    | 224,142 |

----

|                 | Years      Ended December 31, |
|----------------------|-------------------------------|
| (In      thousands)  | 2009                          |   | 2008 |   | 2007 |   |
| Federal              | $                             | (27,647 | ) | $ | 26,448 |   | $ | (48,955 | ) |
| State      and local |                          | (3,233 | ) |   | 3,843 |   |   | (9,441 | ) |
| Total                | $                             | (30,880 | ) | $ | 30,291 |   | $ | (58,396 | ) |
|                 |                          |   |   |   |   |   |   |   |   |
|                 | Year      Ended December 31,  |
| (In      thousands)  |                          | 2009 |   |   | 2008 |   |   | 2007 |   |
| Current              | $                             | (30,880 | ) | $ | (37,576 | ) | $ | (31,585 | ) |
| Deferred             |                          | - |   |   | 67,867 |   |   | (26,811 | ) |
| Total                | $                             | (30,880 | ) | $ | 30,291 |   | $ | (58,396 | ) |

|                                                          | Year      Ended December 31, |
|---------------------------------------------------------------|------------------------------|
| (In      thousands)                                           | 2009                         |   | 2008 |   | 2007 |   |
| Federal      taxes at statutory rate                          | $                            | (32,546 | ) | $ | (75,312 | ) | $ | (52,807 | ) |
| State      and local taxes – net of federal tax benefit |                         | (2,101 | ) |   | 2,498 |   |   | (6,137 | ) |
| Change      in unrecognized tax benefit                       |                         | (1,294 | ) |   | (1,469 | ) |   | (641 | ) |
| Manufacturing      credit                                     |                         | (1,300 | ) |   | (1,269 | ) |   | 1,519 |   |
| Change      in valuation allowance                            |                         | 8,220 |   |   | 108,608 |   |   | 250 |   |
| Other                                                         |                         | (1,859 | ) |   | (2,765 | ) |   | (580 | ) |
| Total                                                         | $                            | (30,880 | ) | $ | 30,291 |   | $ | (58,396 | ) |

|                                                              |  Year      Ended December 31, |
|-------------------------------------------------------------------|------------------------------------|
| (In      thousands)                                               |                               |  2009 |   | 2008 |   | 2007 |   |
| Balance      at January 1, 2009                                   | $                                  | 4,677 |   | $ | 6,146 |   | $ | 6,787 |   |
| Additions      based on tax positions related to the current year |                               |  - |   |   | - |   |   | - |   |
| Additions      for tax positions of prior years                   |                               |  139 |   |   | 471 |   |   | 679 |   |
| Reductions      for tax positions of prior years                  |                               |  (506 | ) |   | (827 | ) |   | (1,320 | ) |
| Settlements                                                       |                               |  (927 | )  |   | (1,113 | ) |   | - |  |
| Balance      at December 31, 2009                                 | $                                  |  3,383 |   | $ | 4,677 |   | $ | 6,146 |   |

----

|                                                          | December      31, |
|---------------------------------------------------------------|-------------------|
| (In      thousands)                                           | 2009              |   | 2008 |   |
| Deferred      tax assets:                                     |              |   |   |   |
|    Warranty,      insurance and other accruals | $                 | 12,187 |   | $ | 12,177 |   |
|    Inventory                                   |              | 55,303 |   |   | 61,493 |   |
|    State      taxes                            |              | 17 |   |   | 27 |   |
|    Net      operating loss carryforward        |              | 48,775 |   |   | 35,893 |   |
|    Deferred      charges                       |              | 1,870 |   |   | 2,126 |   |
| Total      deferred tax assets                                |              | 118,152 |   |   | 111,716 |   |
| Deferred      tax liabilities:                                |              |   |   |   |   |   |
|    Depreciation                                |              | 695 |   |   | 2,421 |   |
|    Prepaid      expenses                       |              | 379 |   |   | 437 |   |
| Total      deferred tax liabilities                           |              | 1,074 |   |   | 2,858 |   |
| Less      valuation allowance                                 |              | 117,078 |   |   | 108,858 |   |
| Net      deferred tax asset                                   | $                 | - |   | $ | - |   |

----

|                                                                                 | December      31, 2009     |    | December      31, 2008  |   |
|--------------------------------------------------------------------------------------|----------------------------|---------|-------------------------|--------|
|                                                                                 |         Carrying |    |         Fair  |   |         Carrying |   |         Fair |   |
|                                                                                 |         Amount   |    |         Value |   |         Amount |   |         Value |   |
| Assets:                                                                              |                       |    |                    |   |   |   |   |   |
|    Cash,      including restricted cash                               | $                          | 132,232 |                    | $      | 132,232 |   | $ | 39,176 |   | $ | 39,176 |   |
|    Mortgage      loans held for sale                                  |                       | 34,978  |                    |   | 34,978 |   |   | 37,772 |   |   | 37,772 |   |
|    Other      assets                                                  |                       | 10,172  |                    |   | 10,050 |   |   | 14,282 |   |   | 13,813 |   |
|    Notes      receivable                                              |                       | 5,584   |                    |   | 5,584 |   |   | 5,000 |   |   | 5,356 |   |
|    Commitments      to extend real estate loans                       |                       | -       |                    |   | - |   |   | 638 |   |   | 638 |   |
|    Best-efforts      contracts for committed IRLCs and mortgage loans |                       |    |                    |   |   |   |   |   |   |   |   |   |
|       held      for sale                               |                       | 308     |                    |   | 308 |   |   | 73 |   |   | 73 |   |
|    Forward      sale of mortgage-backed securities                    |                       | 833     |                    |   | 833 |   |   | - |   |   | - |   |
| Liabilities:                                                                         |                       |    |                    |   |   |   |   |   |   |   |   |   |
|    Notes      payable - banks                                         |                       | 24,142  |                    |   | 24,142 |   |   | 35,078 |   |   | 35,078 |   |
|    Mortgage      notes payable                                        |                       | 6,160   |                    |   | 7,036 |   |   | 6,442 |   |   | 9,819 |   |
|    Notes      payable - other                                         |                       | -       |                    |   | - |   |   | 9,857 |   |   | 9,857 |   |
|    Senior      Notes                                                  |                       | 199,424 |                    |   | 187,750 |   |   | 199,168 |   |   | 105,000 |   |
|    Commitments      to extend real estate loans                       |                       | 145     |                    |   | 145 |   |   | - |   |   | - |   |
|    Forward      sale of mortgage-backed securities                    |                       | -       |                    |   | - |   |   | 1,104 |   |   | 1,104 |   |
|    Other      liabilities                                             |                       | 51,851  |                    |   | 51,851 |   |   | 54,183 |   |   | 54,183 |   |
| Off-Balance      Sheet Financial Instruments:                                        |                       |    |                    |   |   |   |   |   |   |   |   |   |
|    Letters      of credit                                             |                       | -       |                    |   | 693 |   |   | - |   |   | 727 |   |

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

----

|                                                                             | Years      Ended |    |
|----------------------------------------------------------------------------------|------------------|---------|
|                                                                             | 2009             |    | 2008 |   | 2007 |   |
| Revenue:                                                                         |             |    |   |   |   |   |
|   Midwest      homebuilding                                            | $                | 258,910 |   | $ | 232,715 |   | $ | 358,441 |   |
|   Florida      homebuilding                                            |             | 95,615  |   |   | 151,643 |   |   | 312,930 |   |
|   Mid-Atlantic      homebuilding                                       |             | 201,366 |   |   | 202,038 |   |   | 326,451 |   |
|   Other      homebuilding – unallocated (a)                      |             | -       |   |   | 7,131 |   |   | (424 | ) |
|   Financial      services                                              |             | 14,058  |   |   | 14,132 |   |   | 19,062 |   |
| Total      revenue                                                               | $                | 569,949 |   | $ | 607,659 |   | $ | 1,016,460 |   |
|                                                                             |
| Operating      (loss) income:                                                    |             |    |   |   |   |   |   |   |   |
|   Midwest      homebuilding (b)                                        | $                | (17,590 | ) | $ | (73,073 | ) | $ | (10,377 | ) |
|   Florida      homebuilding (b)                                        |             | (41,092 | ) |   | (71,864 | ) |   | (63,117 | ) |
|   Mid-Atlantic      homebuilding (b)                                   |             | (7,500  | ) |   | (41,491 | ) |   | (43,547 | ) |
|   Other      homebuilding – unallocated (a)                      |             | -       |   |   | 503 |   |   | 386 |   |
|   Financial      services                                              |             | 6,533   |   |   | 6,010 |   |   | 8,517 |   |
|   Less:      Corporate selling, general and administrative expense (c) |             | (23,932 | ) |   | (29,567 | ) |   | (27,395 | ) |
| Total      operating loss                                                        | $                | (83,581 | ) | $ | (209,482 | ) | $ | (135,533 | ) |
|                                                                             |
| Interest      expense:                                                           |             |    |   |   |   |   |   |   |   |
|   Midwest      homebuilding                                            | $                | 4,043   |   | $ | 5,197 |   | $ | 4,788 |   |
|   Florida      homebuilding                                            |             | 1,690   |   |   | 2,335 |   |   | 5,877 |   |
|   Mid-Atlantic      homebuilding                                       |             | 2,235   |   |   | 3,209 |   |   | 3,815 |   |
|   Financial      services                                              |             | 499     |   |   | 456 |   |   | 636 |   |
|   Corporate                                                            |             | -       |   |   | - |   |   | 227 |   |
| Total      interest expense                                                      | $                | 8,467   |   | $ | 11,197 |   | $ | 15,343 |   |
|                                                                             |
| Other      (loss) income (d)                                                     |             | (941    | ) |   | 5,555 |   |   | - |   |
|                                                                             |
| Loss      from continuing operations before income taxes                         | $                | (92,989 | ) | $ | (215,124 | ) | $ | (150,876 | ) |
|                                                                             |
| Assets:                                                                          |             |    |   |   |   |   |   |   |   |
|   Midwest      homebuilding                                            | $                | 224,059 |   | $ | 242,066 |   | $ | 354,220 |   |
|   Florida      homebuilding                                            |             | 80,797  |   |   | 121,587 |   |   | 241,603 |   |
|   Mid-Atlantic      homebuilding                                       |             | 141,998 |   |   | 185,268 |   |   | 276,887 |   |
|   Financial      services                                              |             | 52,092  |   |   | 60,992 |   |   | 62,411 |   |
|   Corporate                                                            |             | 164,882 |   |   | 83,375 |   |   | 167,926 |   |
|   Assets      of discontinued operation                                |             | -       |   |   | - |   |   | 14,598 |   |
| Total      assets                                                                | $                | 663,828 |   | $ | 693,288 |   | $ | 1,117,645 |   |
|                                                                             |
| Investment      in Unconsolidated LLCs:                                          |             |    |   |   |   |   |   |   |   |
|   Midwest      homebuilding                                            | $                | 6,051   |   | $ | 6,359 |   | $ | 15,705 |   |
|   Florida      homebuilding                                            |             | 4,248   |   |   | 6,771 |   |   | 24,638 |   |
|   Mid-Atlantic      homebuilding                                       |             | -       |   |   | - |   |   | - |   |
|   Financial      services                                              |             | -       |   |   | - |   |   | - |   |
| Total      investment in Unconsolidated LLCs                                     | $                | 10,299  |   | $ | 13,130 |   | $ | 40,343 |   |
|                                                                             |
| Depreciation      and amortization:                                              |             |    |   |   |   |   |   |   |   |
|   Midwest      homebuilding                                            | $                | 659     |   | $ | 336 |   | $ | 543 |   |
|   Florida      homebuilding                                            |             | 728     |   |   | 1,288 |   |   | 1,603 |   |
|   Mid-Atlantic      homebuilding                                       |             | 959     |   |   | 1,028 |   |   | 849 |   |
|   Financial      services                                              |             | 395     |   |   | 471 |   |   | 498 |   |
|   Corporate                                                            |             | 5,130   |   |   | 4,631 |   |   | 4,495 |   |
| Total      depreciation and amortization                                         | $                | 7,871   |   | $ | 7,754 |   | $ | 7,988 |   |

| (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 ending December 31, 2009, 2008 and 2007 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 $57.1 million, $158.6 million and $152.0  million, |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (c)   | respectively.  For      2009, 2008 and 2007, these charges reduced operating income by $20.4      million, $56.3 million and $8.8 million in the Midwest region, $24.1      million, $66.9 million and $88.3 million in the Florida region, and $12.6      million, $35.4 million and $54.9 million in the Mid-Atlantic region,      respectively. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | The      years ending December 31, 2009, 2008 and 2007 include the impact of      severance charges of $1.0 million, $3.3 million and $5.4 million,      respectively.  The year ended December 31, 2008 also includes      charges of $3.3 million for corporate asset impairments.  The      year ended December 31, 2007 also includes the write-off of $5.2 million      of intangibles. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | Other      (loss) income is comprised of the loss on the sale of the plane during the      first quarter of 2009, and the gain recognized on the exchange of the      Company’s airplane during the first quarter of  2008. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                            | 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) (c)                                                      | $                 | 6,996   |               | $      | (21,074       | )      | $              | (19,902 | ) | $ | (28,129 | ) |
| Earnings      (loss) per common share:                                          |              |    |               |   |          |   |           |    |   |   |   |   |
|    Basic  (c)                                          | $                 | 0.38    |               | $      | (1.14         | )      | $              | (1.26   | ) | $ | (2.01 | ) |
|    Diluted      (c)                                              | $                 | 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 |   |
|                                                                            |              |    |               |   |          |   |           |    |   |   |   |   |
|                                                                            |              |
|                                                                            | December      31, |    | September      30, |   | June      30, |   | March      31, |    |
|                                                                            |              | 2008    |               |   | 2008          |   |           | 2008    |   |   | 2008 |   |
| (In      thousands)                                                             | (Unaudited)       |    | (Unaudited)        |   | (Unaudited)   |   | (Unaudited)    |    |
| Revenue                                                                         | $                 | 150,187 |               | $      | 160,385       |   | $              | 141,002 |   | $ | 156,085 |   |
| Gross      margin (a)                                                           | $                 | (35,832 | )                  | $      | (24,280       | )      | $              | (21,103 | ) | $ | 3,410 |   |
| Net      loss from continuing operations                                        | $                 | (75,360 | )                  | $      | (58,655       | )      | $              | (91,250 | ) | $ | (20,150 | ) |
| Discontinued      operation, net of tax                                         | $                 | -       |               | $      | -             |   | $              | (413    | ) | $ | 380 |   |
| Net      loss (c)                                                               | $                 | (75,360 | )                  | $      | (58,655       | )      | $              | (91,663 | ) | $ | (19,770 | ) |
| Loss      per common share:                                                     |              |    |               |   |          |   |           |    |   |   |   |   |
|    Basic  (b)      (c)                                 | $                 | (5.38   | )                  | $      | (4.18         | )      | $              | (6.72   | ) | $ | (1.58 | ) |
|    Diluted      (b) (c)                                          | $                 | (5.38   | )                  | $      | (4.18         | )      | $              | (6.72   | ) | $ | (1.58 | ) |
| Weighted      average common shares outstanding  (In      thousands): |              |    |               |   |          |   |           |    |   |   |   |   |
|    Basic                                                         |              | 14,022  |               |   | 14,019        |   |           | 14,016  |   |   | 14,007 |   |
|    Diluted                                                       |              | 14,022  |               |   | 14,019        |   |           | 14,016  |   |   | 14,007 |   |

| (a)   | First,      second, third and fourth quarters of 2009 include the impact of charges      relating to the impairment of inventory and investment in Unconsolidated      LLCs, which reduced gross margin by $10.9 million, $6.6 million, $15.0      million and $22.9 million, respectively.  These same charges      reduced gross margin in the first, second, third and fourth quarters of      2008 by $21.1 million, $39.9 million, $43.1 million and $49.2 million,      respectively. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | First      and second quarters of 2008 include earnings (loss) per share from      discontinued operations of $0.03 and $(0.03),  respectively. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | 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 net income by $9.3 million, $5.7 million, $12.1 million      and $15.9 million, respectively, and reduced earnings (loss) per common      share for those same periods by $0.66, 0.36, 0.65 and      $0.85.  First, second, third and fourth quarters of 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, which reduced net income by $13.8 million, $24.7      million, $27.0 million and $32.8 million, respectively, and loss per      common share by $0.99, $1.76, $1.93 and $2.34,    respectively. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

| ITEM      9A.  CONTROLS ANDPROCEDURES |
|-------------------------------------------------|

| ITEM      9B.  OTHER INFORMATION |
|--------------------------------------------|

----

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

----

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

| ITEM      11.  EXECUTIVECOMPENSATION |
|------------------------------------------------|

| ITEM      12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND      MANAGEMENT AND |
|--------------------------------------------------------------------------------------------------|

| Plan      Category                                              | Number      of securities      to be      issued upon exercise      of outstanding      options,      warrants      and rights(a) |   | Weighted-average      exercise      price of      outstanding options,      warrants      and rights(b) |   | Number      of securities remaining      available for future      issuance under equity      compensation plans (excluding      securities reflected      in column (a))(c) |
|-----------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Equity      compensation plans approved by shareholders (1)     | 1,654,111                                                                                                                         |   | $25.69                                                                                                  |   |               718,094                                                                                                                |
| Equity      compensation plans not approved by shareholders (2) |         102,339                                                                                                         |   |          -                                                 |   |                658,026                                                                                                          |
| Total                                                           | 1,756,450                                                                                                                         |   | $25.69                                                                                                  |   |             1,376,120                                                                                                                          |

| (1)   | Consists      of the Company’s 1993 Stock Incentive Plan as Amended (1,624,043      outstanding stock options and 915 restricted shares), 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 (6,000 outstanding stock      units).  The weighted average exercise price relates to the      stock options granted under the 1993 Stock Incentive Plan as      Amended.  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 $13.66,      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 restricted shares had a fair market value of $33.86      on the day of grant.  The aggregate number of shares with      respect to which awards may be granted under the 2009 Long-Term Incentive      Plan 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 (26,194      shares at December 31, 2009).  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.  The average unit price      of the outstanding “phantom stock” units is $21.52.  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 of 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 Company maintains Registration Statements on Form      S-8 pursuant to which a total of 1,150,000 Common Shares are registered      for issuance under the terms of these plans.  The number of      securities remaining available for future issuance reflects the number of      Common Shares registered under such Registration Statements which have not      been issued under the plans as of December 31,  2009. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ITEM      13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND      DIRECTOR |
|---------------------------------------------------------------------------------------|

| ITEM      14.  PRINCIPAL ACCOUNTING FEES ANDSERVICES |
|-----------------------------------------------------------|

----

| (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 | 51 |
|                                            |   | Consolidated      Statements of Operations for the Years Ended December 31, 2009, 2008 and      2007 | 52 |
|                                            |   | Consolidated      Balance Sheets as of December 31, 2009 and 2008 | 53 |
|                                            |   | Consolidated      Statements of Shareholders’ Equity for the Years Ended December 31, 2009,      2008 |   |
|                                            |   |   and      2007 | 54 |
|                                            |   | Consolidated      Statements of Cash Flows for the Years Ended December 31, 2009, 2008 and      2007 | 55 |
|                                            |   | Notes      to Consolidated Financial Statements | 56-83 |
|                                            |   |   |   |
|                                            | (2) | Financial      Statement Schedules: |   |
|                                            |   |   |   |
|                                            |   | None      required. |   |
|                                            |   |
|                                            | (3) | Exhibits: |   |
|                                            |   |

| Exhibit      Number |   |  Description                                                                                                                                                                                                                                                                                                                                                 |
|---------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |   |                                                                                                                                                                                                                                                                                                                                                              |
| 3.1                 |   | Amended      and Restated Articles of Incorporation of the Company, hereby incorporated      by reference to Exhibit 3.1 of the Company’s Annual Report on Form 10-K      for the fiscal year ended December 31, 1993 (File No.      1-12434).                                                                                                              |
|                |   |                                                                                                                                                                                                                                                                                                                                                              |
| 3.2                 |   | Amended      and Restated Regulations of the Company, hereby incorporated by reference      to Exhibit 3.4 of the Company’s Annual Report on Form 10-K of the fiscal      year ended December 31, 1998 (File No. 1-12434).                                                                                                                                  |
|                |   |                                                                                                                                                                                                                                                                                                                                                              |
| 3.3                 |   | Amendment      of Article I(f) of the Company’s Amended and Restated Code of Regulations      to permit shareholders to appoint proxies in any manner permitted by Ohio      law, hereby incorporated by reference to Exhibit 3.1(b) of the Company’s      Quarterly Report on Form 10-Q for the quarter ended June 30, 2001 (File      No. 1-12434). |
|                |   |                                                                                                                                                                                                                                                                                                                                                              |
| 3.4                 |   | Amendment      to Article First of the Company’s Amended and Restated Articles of      Incorporation dated January 9, 2004, hereby incorporated by reference to      Exhibit 3.1 of the Company’s Quarterly Report on Form 10-Q for the quarter      ended March 31, 2006.                                                                            |
|                |   |                                                                                                                                                                                                                                                                                                                                                              |
| 3.5                 |   | Certificate      of Amendment by Directors to Article Fourth of the Company’s Amended and      Restated Articles of Incorporation dated March 13, 2007, incorporated      herein by reference to Exhibit 3.1 of the Company’s Current Report on Form      8-K filed March 15, 2007.                                                                   |
|                |   |                                                                                                                                                                                                                                                                                                                                                              |
| 3.6                 |   | Amendment      to the Company’s Amended and Restated Code of Regulations, hereby      incorporated by reference to Exhibit 3.1 of the Company’s Current Report      on Form 8-K filed on March 13, 2009.                                                                                                                                              |
|                |   |                                                                                                                                                                                                                                                                                                                                                              |
| 4.1                 |   | Specimen      of Stock Certificate, hereby incorporated by reference to Exhibit 4 of 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., its guarantors as      named in the Indenture and U.S. Bank National Association, as trustee of      the 6 7/8% Senior Notes due 2012, hereby incorporated by reference to      Exhibit 4.1 of the Company’s Current Report on Form 8-K dated as of March      24, 2005.            |

----

| 4.3    |   | Registration      Rights Agreement dated as of March 24, 2005, among the Company, the      Guarantors listed on the signature page thereof and the Initial Purchasers      listed on the signature page thereof, incorporated herein by reference to      Exhibit 4.2 of the Company’s Current Report on Form 8-K dated as of March      24, 2005. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                     |
| 4.4    |   | Specimen      certificate representing the 9.75% Series A Preferred Shares, par value      $0.1 per share, of the Company, incorporated herein by reference to      Exhibit 4.1 of the Company’s Current Report on Form 8-K filed March 15,      2007.                                                                                             |

| 10.1*  |   | The      M/I Homes, Inc. 401(k) Profit Sharing Plan as Amended and Restated,      adopted as of January 1, 1997, hereby incorporated by reference to Exhibit      10.1 of the Company’s Annual Report on Form 10-K for the fiscal year ended      December 31, 2003 (File No. 1-12434).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.2*  |   | Amendment      Number 1 of the M/I Homes, Inc. 401(k) Profit Sharing Plan for the      Economic Growth and Tax Relief Reconciliation Act of 2001 dated November      12, 2002, hereby incorporated by reference to Exhibit 10.1 of the      Company’s Quarterly Report on Form 10-Q for the quarter ended September      30, 2002 (File No. 1-12434).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.3*  |   | Second      Amendment to the M/I Homes, Inc. 401(k) Profit Sharing Plan dated November      11, 2003, hereby incorporated by reference to Exhibit 10.3 of the      Company’s Annual Report on Form 10-K for the fiscal year ended December      31, 2003 (File No. 1-12434).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.4*  |   | Third      Amendment to the M/I Homes, Inc. 401(k) Profit Sharing Plan dated January      26, 2005, hereby incorporated by reference to Exhibit 10.4 of the      Company’s Annual Report on Form 10-K for the fiscal year ended December      31, 2004 (File No. 1-12434).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.5*  |   | Fourth      Amendment to the M/I Homes, Inc. 401(k) Profit Sharing Plan dated July 1,      2005, hereby incorporated by reference to Exhibit 10.1 of the Company’s      Quarterly Report on Form 10-Q for the quarter ended September 30,      2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.6*  |   | Fifth      Amendment to the M/I Homes, Inc. 401(k) Profit Sharing Plan dated November      7, 2006, incorporated herein by reference to Exhibit 10.6 to the Company’s      Annual Report on Form 10-K for the fiscal year ended December 31,      2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.7*  |   | Sixth      Amendment to the M/I Homes, Inc. 401(k) Profit Sharing Plan dated December      13, 2006, incorporated herein by reference to Exhibit 10.7 to the      Company’s Annual Report on Form 10-K for the fiscal year ended December      31, 2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.8   |   | Second      Amended and Restated Credit Agreement effective as of October 6, 2006 by      and among M/I Homes, Inc., as borrower; JPMorgan Chase Bank, N.A. as agent      for the lenders and Wachovia Bank National Association, as syndication      agent; The Huntington National Bank, KeyBank National Association, Charter      One Bank, N.A. SunTrust Bank, AmSouth Bank, Bank of Montreal, Guaranty      Bank, National City Bank and U.S. Bank National Association, as co-agents;      JPMorgan Chase Bank, N.A., Wachovia Bank, National Association, The      Huntington National Bank, KeyBank National Association, Charter One Bank,      N.A., SunTrust Bank, AmSouth Bank, Bank of Montreal, Guaranty Bank,      National City Bank, U.S. Bank National Association, LaSalle Bank National      Association, PNC Bank, N.A., City National Bank, Fifth Third Bank,      Franklin Bank, S.S.B., Comerica Bank, and Bank United, F.S.B., as banks;      and J.P. Morgan Securities Inc., as lead arranger and sole bookrunner,      incorporated by reference to Exhibit 10 of the Company’s Current Report on      Form 8-K dated as of October 6, 2006. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.9   |   | Amendment      to Second Amended and Restated Credit Agreement effective as of December      22, 2006 by and among M/I Homes, Inc. as borrower and JPMorgan Chase Bank,      N.A. as agent, and the lenders party to that certain Second Amended and      Restated Credit Agreement dated October 6, 2006, incorporated herein by      reference to Exhibit 10.9 to the Company’s Annual Report on Form 10-K for      the year ended December 31, 2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.10  |   | First      Amendment to Second Amended and Restated Credit Agreement dated August 28,      2007, incorporated herein by reference to Exhibit 10.1 to the Company’s      Current Report on Form 8-K filed on August 31, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.11  |   | Second      Amendment to Second Amended and Restated Credit Agreement dated March 27,      2008, incorporated herein by reference to Exhibit 10.1 to the Company’s      Current Report on Form 8-K filed April 1,2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

----

| 10.12  |   | Third      Amendment to Second Amended and Restated Credit Agreement, dated January      15, 2009 incorporated herein by reference to Exhibit 10.1 to the Company’s      Current Report on Form 8-K filed on January 20, 2009.                                                                                                                                                     |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.13  |   | Collateral      Agreement made by M/I Homes, Inc., and certain of its subsidiaries in      favor of PNC Bank, National Association, as Collateral Agent dated as of      January 15, 2009, incorporated herein by reference to Exhibit 10.2 to the      Company’s Current Report on Form 8-K filed on January 20,      2009.                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.14  |   | First      Amended and Restated Revolving Credit Agreement Among M/I Financial, Corp.      and M/I Homes, Inc., as the Borrowers, and Guaranty Bank, hereby      incorporated by reference to Exhibit 10.1 of the Company’s Current Report      on Form 8-K filed on April 28, 2006.                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.15  |   | First      Amendment to First Amended and Restated Revolving Credit Agreement      effective as of November 13, 2006, by and among M/I Financial Corp., the      Company and Guaranty Bank, hereby incorporated by reference to Exhibit      10.12 to the Company’s Annual Report on Form 10-K for the year ended      December 31, 2007.                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.16  |   | Second      Amendment to First Amended and Restated Revolving Credit Agreement      effective as of April 27, 2007 by and among M/I Financial Corp., the      Company and Guaranty Bank, hereby incorporated by reference to Exhibit      10.4 of the Company’s Quarterly Report on Form 10-Q for the quarter ended      March 31, 2007.                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.17  |   | Third      Amendment to First Amended and Restated Revolving Credit Agreement      effective as of August 8, 2007 by and among M/I Financial Corp., the      Company and Guaranty Bank, hereby incorporated by reference to Exhibit      10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended      September 31, 2007.                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.18  |   | Fourth      Amendment to First Amended and Restated Revolving Credit Agreement      effective as of April 18, 2008 by and among M/I Financial Corp, the      Company and Guaranty Bank, incorporated herein by reference to Exhibit      10.3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended      March 31, 2008.                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.19  |   | Credit      Agreement by and among M/I Financial Corp., as borrower, the lenders party      thereto and Guaranty Bank, as administrative agent dated May 2, 2008,      incorporated herein by reference to Exhibit 10.1 of the Company’s      Quarterly Report on Form 10-Q for the quarter ended June 30,      2008.                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.20  |   | Credit      Agreement by and among M/I Financial Corp., as borrower, the lenders party      thereto and The Huntington National Bank, as administrative agent, dated      April 29, 2009, hereby incorporated by reference to Exhibit 10.1 to the      Company’s Quarterly Report on Form 10-Q for the quarter ended June 30,      2009.                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.21  |   | 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 September 23, 2009,  hereby      incorporated by reference to Exhibit 10.1 to the Company’s Quarterly      Report on Form 10-Q for the quarter ended September 30,    2009. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.22  |   | 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 December 30, 2009.  (Filed      herewith.)                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.23  |   | Master      Letter of Credit Facility Agreement by and between U.S. Bank National      Association and M/I Homes, Inc., dated July 27, 2009, hereby incorporated      by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K      filed on July 30, 2009.                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.24  |   | Letter      of Credit Pledge by and between Citibank, N.A. and M/I Homes, Inc., dated      July 27, 2009, hereby incorporated by reference to Exhibit 10.2 of the      Company’s Current Report on Form 8-K filed on July 30,    2009.                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.25  |   | Letter      of Credit Agreement by and between Regions Bank and M/I Homes, Inc., dated      July 27, 2009, hereby incorporated by reference to Exhibit 10.3 of the      Company’s Current Report on Form 8-K filed on July 30,    2009.                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.26  |   | Credit      Agreement by and between The Huntington National Bank and M/I Homes, Inc.,      dated July 27, 2009, hereby incorporated by reference to Exhibit 10.4 of      the Company’s Current Report on Form 8-K filed on July 30,      2009.                                                                                                                                    |

----

| 10.27* |   | M/I      Homes, Inc. 1993 Stock Incentive Plan As Amended dated April 22, 1999,      hereby incorporated by reference to Exhibit 4 of the Company’s Quarterly      Report on Form 10-Q for the quarter ended June 30, 1999 (File No.      1-12434).                               |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                    |
| 10.28* |   | First      Amendment to M/I Homes, Inc. 1993 Stock Incentive Plan As Amended dated      August 11, 1999, hereby incorporated by reference to Exhibit 10.1 of the      Company’s Quarterly Report on Form 10-Q for the quarter ended September      30, 1999 (File No. 1-12434).   |
|   |   |                                                                                                                                                                                                                                                                                    |
| 10.29* |   | Second      Amendment to the Company’s 1993 Stock Incentive Plan as Amended dated      February 13, 2001, hereby incorporated by reference to Exhibit 10.2 of the      Company’s Quarterly Report on Form 10-Q for the quarter ended June 30,      2002 (File No. 1-12434). |
|   |   |                                                                                                                                                                                                                                                                                    |
| 10.30* |   | Third      Amendment to the Company’s 1993 Stock Incentive Plan as Amended dated      April 27, 2006, hereby incorporated by reference to Exhibit 10.1 of the      Company’s Quarterly Report on Form 10-Q for the quarter ended March 31,      2006.                       |
|   |   |                                                                                                                                                                                                                                                                                    |
| 10.31* |   | 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.         |
|   |   |                                                                                                                                                                                                                                                                                    |
| 10.32  |   | Form      of M/I Homes, Inc. 2006 Director Equity Incentive Plan Stock Units Award      Agreements, incorporated herein by reference to Exhibit 10.1 to the      Company’s Current Report of Form 8-K filed on August 21,    2006.                                                |
|   |   |                                                                                                                                                                                                                                                                                    |
| 10.33  |   | 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.          |
|   |   |                                                                                                                                                                                                                                                                                    |
| 10.34  |   | 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.          |
|   |   |                                                                                                                                                                                                                                                                                    |
| 10.35* |   | 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. |

| 10.36* |   | Collateral      Assignment Split-Dollar Agreement by and among the Company and Robert H.      Schottenstein, and Janice K. Schottenstein as Trustee, of the Robert H.      Schottenstein 1996 Insurance Trust dated September 24, 1997, hereby      incorporated by reference to Exhibit 10.28 of the Company’s Annual Report      on Form 10-K for the fiscal year ended December 31, 1997 (File No.      1-12434).  In 2004, the Trustee changed to Steven Schottenstein      but did not require amendment to the originalagreement. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.37  |   | Collateral      Assignment Split-Dollar Agreement by and among the Company and Phillip      Creek, dated September 24, 1997.   (Filed    herewith).                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.38* |   | Change      of Control Agreement between the Company and Robert H. Schottenstein dated      July 3, 2008, incorporated herein by reference to Exhibit 10.1 of the      Company’s Current Report on Form 8-K filed on July 3,  2008.                                                                                                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.39* |   | Change      of Control Agreement between the Company and Phillip G. Creek dated July      3, 2008, incorporated herein by reference to Exhibit 10.2 of the Company’s      Current Report on Form 8-K filed on July 3, 2008.                                                                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.40* |   | Change      of Control Agreement between the Company and J. Thomas Mason dated July 3,      2008, incorporated herein by reference to Exhibit 10.3 of the Company’s      Current Report on Form 8-K filed on July 3, 2008.                                                                                                                                                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.41* |   | M/I      Homes, Inc. 2004 Executive Officers Compensation Plan, hereby incorporated      by reference to Exhibit 10.2 of the Company’s Quarterly Report on Form      10-Q for the quarter ended March 31, 2004 (File No. 1-12434).                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.42* |   | M/I      Homes, Inc. 2009 Annual Incentive Plan, incorporated herein by reference      to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed on May      11, 2009.                                                                                                                                                                                                                                                                                                                                                                    |

----

| 10.43*                                                           |   | M/I      Homes, Inc. 2009 Long-Term Incentive Plan, incorporated herein by      reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K      filed on May 11, 2009.                                                                                                                                               |
|------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                             |   |                                                                                                                                                                                                                                                                                                                                  |
| 10.44*                                                      |   | First      Amendment to M/I Homes 2009 Long-Term Incentive Plan, incorporated herein      by reference to Exhibit 10.3 of the Company’s Current Report on Form 8-K      filed on May 11, 2009.                                                                                                                                  |
|                                                             |   |                                                                                                                                                                                                                                                                                                                                  |
| 10.45*                                                           |   | M/I      Homes, Inc. 2009 Long-Term Incentive Plan Stock Units Award Agreement for      Directors, dated August 18, 2009, hereby incorporated by reference to      Exhibit 10.2 of the Company’s Quarterly Report on Form 10-Q for the      quarter ended September 30, 2009.                                                   |
|                                                             |   |                                                                                                                                                                                                                                                                                                                                  |
| 10.46*                                                           |   | Form      of 2008 Award Formulas and Performance Goals Under the 2004 Executive      Officer Compensation Plan, incorporated herein by reference to Exhibit      10.1 to the Company’s Current Report on Form 8-K filed on February 19,      2008.                                                                              |
|                                                             |   |                                                                                                                                                                                                                                                                                                                                  |
| 10.47                                                            |   | Agreement      for Purchase and Sale, dated as of December 21, 2007, by and between M/I      Homes of West Palm Beach, LLC, as seller, and KLP East LLC, as purchaser,      incorporated herein by reference to Exhibit 10.43 to the Company’s Annual      Report on Form 10-K for the year ended December 31,  2007.           |
|                                                             |   |                                                                                                                                                                                                                                                                                                                                  |
| 10.48                                                       |   | Amendment      to Agreement for Purchase and Sale, dated as of December 27, 2007, by and      between M/I Homes of West Palm Beach, LLC, as seller, and KLP East LLC, as      purchaser, incorporated by reference to Exhibit 10.44 to the Company’s      Annual Report on Form 10-K for the year ended December 31,      2007. |
|                                                             |   |                                                                                                                                                                                                                                                                                                                                  |
| 21                                                               |   | Subsidiaries      of Company.  (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.)                                                                                                                      |
|                                                             |   |                                                                                                                                                                                                                                                                                                                                  |
| *      Management contract or compensatory plan or  arrangement. |

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

----

| Exhibit      Number |   |  Description                                                                                                                                                                                                                                 |
|---------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |   |                                                                                                                                                                                                                                              |
| 10.21               |   | 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 December 30, 2009.  (Filed      herewith.) |
|                |   |                                                                                                                                                                                                                                              |
| 10.37               |   | Collateral      Assignment Split-Dollar Agreement by and among the Company and Phillip      Creek, dated September 24, 1997.   (Filed    herewith).                                                                                     |
|                |
| 21                  |   | Subsidiaries      of Company.                                                                                                                                                                                                                     |
|                |   |                                                                                                                                                                                                                                              |
| 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                      |
| YVETTE      MCGEE BROWN*               |   | Executive      Vice President,             |
| Yvette      McGee Brown                |   | Chief      Financial Officer and Director  |
| Director                               |   | (Principal      Financial Officer)         |
|                                   |   |                                       |
| THOMAS      D. IGOE*                   |   | /s/Ann      Marie W. Hunker                |
| Thomas      D. Igoe                    |   | Ann      Marie W. Hunker                   |
| Director                               |   | Vice      President, Corporate Controller  |
|                                   |   | (Principal      Accounting Officer)        |
| J.      THOMAS MASON*                  |   |                                       |
| J.      Thomas Mason                   |   |                                       |
| Executive      Vice President, General |   |                                       |
| Counsel      and Director              |   |                                       |
|                                   |   |                                       |
| JEFFREY      H. MIRO*                  |   |                                       |
| Jeffrey      H. Miro                   |   |                                       |
| Director                               |   |                                       |
|                                   |   |                                       |
| NORMAN      L. TRAEGER*                |   |                                       |
| Norman      L. Traeger                 |   |                                       |
| Director                               |   |                                       |
|                                   |   |                                       |

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

----