**EXHIBIT 12.1**

**Kimball Hill, Inc. and Subsidiaries**

**Computation of Earnings to Fixed Charges**

**(Amounts inthousands, except ratio of earnings to fixed charges)**
| ** **                                                                       | ** ** | **Year ended September  30,** | ** ** |
|----------------------------------------------------------------------------------|------------|-------------------------------|------------|
| ** **                                                                       | ** ** | **2006**                      | ** ** | **2005** | ** ** | **2004** | ** ** | **2003** | ** ** | **2002** | ** ** |
| **Earnings:**                                                                    |       |                          |       |   |   |   |   |   |   |   |   |
| Earnings before income  taxes                                                    |       | $                             | 65,320     |   | $ | 137,523 |   | $ | 82,984 |   | $ | 60,202 |   | $ | 41,055 |   |
| Equity in income of  unconsolidated joint ventures                               |       | (2,215                        | )          | (3,282 | ) | (833 | ) | (618 | ) | (1,123 | ) |
| Minority interests in  net earnings of consolidated partnerships                 |       | 290                           |       | 6,152 |   | 4,232 |   | 4,122 |   | 4,453 |   |
| Fixed charges (from  below)                                                      |       | 55,383                        |       | 39,546 |   | 31,668 |   | 30,774 |   | 25,242 |   |
| Distributed income from  unconsolidated joint ventures                           |       | 1,322                         |       | 3,282 |   | 833 |   | 618 |   | 1,123 |   |
| Less: Interest  capitalized                                                      |       | (51,809                       | )          | (38,221 | ) | (30,016 | ) | (29,015 | ) | (24,300 | ) |
| Interest amortized to  cost of sales                                             |       | 32,899                        |       | 27,696 |   | 35,382 |   | 26,883 |   | 19,584 |   |
| Earnings available for  fixed charges                                            |       | $                             | 101,190    |   | $ | 172,696 |   | $ | 124,250 |   | $ | 92,966 |   | $ | 66,034 |   |
|                                                                             |       |                          |       |   |   |   |   |   |   |   |   |
| **Fixed charges:**                                                               |       |                          |       |   |   |   |   |   |   |   |   |
| Interest incurred,  including capitalized amounts and amortization of debt costs |       | $                             | 53,444     |   | $ | 38,255 |   | $ | 30,641 |   | $ | 29,964 |   | $ | 24,546 |   |
| Estimated interest  component of rent expense                                    |       | 1,939                         |       | 1,291 |   | 1,027 |   | 810 |   | 696 |   |
| Total fixed charges                                                              |       | $                             | 55,383     |   | $ | 39,546 |   | $ | 31,668 |   | $ | 30,774 |   | $ | 25,242 |   |
|                                                                             |       |                          |       |   |   |   |   |   |   |   |   |
| **Ratio of earnings to fixed charges**                                           |       | 1.83                          |       | 4.37 |   | 3.92 |   | 3.02 |   | 2.62 |   |

** **

96

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