10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x Quarterly Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2016

or

¨ Transition Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                      to                     

Commission File Number 1-32375

Comstock Holding Companies, Inc.

(Exact name of registrant as specified in its charter)

Delaware	20-1164345
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1886 Metro Center Drive, 4^th Floor

Reston, Virginia 20190

(703) 883-1700

(Address, including zip code, and telephone number, including area code, of principal executive offices)

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

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

As of August 15, 2016, 3,020,810 shares of Class A common stock, par value $0.01 per share, and 390,500 shares of Class B common stock, par value $0.01 per share, of the registrant were outstanding.

COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIES

FORM 10-Q

INDEX

		Page
PART I – FINANCIAL INFORMATION			3
ITEM 1.	FINANCIAL STATEMENTS:		3
	Consolidated Balance Sheets – June 30, 2016 (unaudited) and December 31, 2015		3
	Consolidated Statements of Operations (unaudited) – Three and Six Months Ended June 30, 2016 and 2015		4
	Consolidated Statements of Cash Flows (unaudited) – Six Months Ended June 30, 2016 and 2015		5
	Notes to Consolidated Financial Statements		6
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		22
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		27
ITEM 4.	CONTROLS AND PROCEDURES		27
PART II – OTHER INFORMATION			28
ITEM 1A.	RISK FACTORS		28
ITEM 6.	EXHIBITS		29
SIGNATURES			30

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PART 1 – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share and per share data)

	June 30, 2016			December 31, 2015
	(unaudited)
ASSETS
Cash and cash equivalents	$	3,377		$	12,448
Restricted cash		2,763			2,566
Trade receivables		1,102			332
Real estate inventories		34,914			38,223
Fixed assets, net		291			394
Other assets, net		4,892			4,515
TOTAL ASSETS	$	47,339		$	58,478
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued liabilities	$	8,398		$	7,638
Notes payable - secured by real estate inventories		21,846			24,823
Notes payable - due to affiliates, unsecured, net of discount		15,692			19,028
Notes payable - unsecured		1,336			1,548
Income taxes payable		21			—
TOTAL LIABILITIES		47,293			53,037
Commitments and contingencies (Note 9)
STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred stock $0.01 par value, 806,647 and 772,210 shares issued and liquidation preference of $4,033 and $3,861 at June 30, 2016 and December 31, 2015, respectively	$	1,226		$	1,174
Class A common stock, $0.01 par value, 11,038,071 shares authorized, 3,020,810 and 2,997,437 issued, and outstanding, respectively		30			30
Class B common stock, $0.01 par value, 390,500 shares authorized, issued, and outstanding		4			4
Additional paid-in capital		175,982			175,963
Treasury stock, at cost (85,570 shares Class A common stock)		(2,662	)		(2,662	)
Accumulated deficit		(179,418	)		(175,785	)
TOTAL COMSTOCK HOLDING COMPANIES, INC. DEFICIT		(4,838	)		(1,276	)
Non-controlling interests		4,884			6,717
TOTAL EQUITY		46			5,441
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	47,339		$	58,478

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

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COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except per share data)

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Revenues
Revenue—homebuilding	$	9,699		$	12,115		$	19,222		$	22,125
Revenue—other		279			449			462			756
Total revenue		9,978			12,564			19,684			22,881
Expenses
Cost of sales—homebuilding		9,185			10,594			17,830			19,184
Cost of sales—other		153			188			244			353
Sales and marketing		403			489			886			914
General and administrative		1,373			1,936			2,915			3,833
Interest and real estate tax expense		306			156			522			326
Operating loss		(1,442	)		(799	)		(2,713	)		(1,729	)
Other income, net		13			582			21			774
Loss before income tax expense		(1,429	)		(217	)		(2,692	)		(955	)
Income tax (expense) benefit		(32	)		(57	)		(57	)		13
Net loss		(1,461	)		(274	)		(2,749	)		(942	)
Net income attributable to non-controlling interests		448			534			884			809
Net loss attributable to Comstock Holding Companies, Inc.		(1,909	)		(808	)		(3,633	)		(1,751	)
Paid-in-kind dividends on Series B Preferred Stock		86			—			172			—
Net loss attributable to common stockholders	$	(1,995	)	$	(808	)	$	(3,805	)	$	(1,751	)
Basic net loss per share	$	(0.60	)	$	(0.25	)	$	(1.15	)	$	(0.57	)
Diluted net loss per share	$	(0.60	)	$	(0.25	)	$	(1.15	)	$	(0.57	)
Basic weighted average shares outstanding		3,319			3,173			3,312			3,077
Diluted weighted average shares outstanding		3,319			3,173			3,312			3,077

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

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COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands, except per share data)

	Six Months Ended June 30,
	2016			2015
Cash flows from operating activities:
Net loss	$	(2,749	)	$	(942	)
Adjustment to reconcile net loss to net cash provided by (used in) operating activities
Amortization of loan discount, loan commitment and deferred financing fees		633			181
Deferred income tax expense (benefit)		7			(90	)
Depreciation expense		104			53
Gain on derivative		—			(696	)
Earnings from unconsolidated joint venture, net of distributions		50			(19	)
Amortization of stock compensation		41			135
Changes in operating assets and liabilities:
Restricted cash		(69	)		(121	)
Trade receivables		(770	)		(723	)
Real estate inventories		3,318			(6,152	)
Other assets		(861	)		470
Accrued interest		113			338
Accounts payable and accrued liabilities		789			2,036
Income taxes payable		21			(43	)
Net cash provided by (used in) operating activities		627			(5,573	)
Cash flows from investing activities:
Purchase of fixed assets		(1	)		(136	)
Payments on note receivable		17			16
Restricted cash		(128	)		(252	)
Net cash used in investing activities		(112	)		(372	)
Cash flows from financing activities:
Proceeds from notes payable		12,066			18,829
Payments on notes payable		(18,927	)		(15,377	)
Loan financing costs		—			(92	)
Distributions to non-controlling interests		(2,717	)		(1,100	)
Contributions from non-controlling interests		—			2,450
Taxes paid related to net share settlement of equity awards		(8	)		(32	)
Repurchase of stock		—			(79	)
Net cash (used in) provided by financing activities		(9,586	)		4,599
Net decrease in cash and cash equivalents		(9,071	)		(1,346	)
Cash and cash equivalents, beginning of period		12,448			7,498
Cash and cash equivalents, end of period	$	3,377		$	6,152
Supplemental cash flow information:
Interest paid, net of interest capitalized	$	(181	)	$	30
Income taxes paid	$	—		$	269
Supplemental disclosure for non-cash activity:
Increase in Class A common stock par value in connection with issuance of stock compensation	$	—		$	2
Increase in Class A common stock par value in connection with CGF Private Placement	$	—		$	16
Increase in additional paid-in capital in connection with issuance of Class A common stock under the CGF Private Placement	$	—		$	889
Discount on notes payable	$	—		$	(543	)
Accrued liability settled through issuance of stock	$	29		$	50
Increase in Series B preferred stock value in connection with dividends paid in-kind	$	52		$	—

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

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COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands, except per share data, number of units, or as otherwise noted)

1. ORGANIZATION AND BASIS OF PRESENTATION

The accompanying unaudited financial statements of Comstock Holding Companies, Inc. and subsidiaries (“Comstock” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. Such financial statements do not include all of the information and disclosures required by GAAP for complete financial statements. In our opinion, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation have been included in the accompanying financial statements. For further information and a discussion of our significant accounting policies, other than discussed below, refer to our audited consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015.

Comstock Holding Companies, Inc., incorporated in 2004 as a Delaware corporation, is a multi-faceted real estate development and construction services company focused in the Washington, D.C. metropolitan area (Washington, D.C., Northern Virginia and Maryland suburbs of Washington, D.C.). We have substantial experience with building a diverse range of products, including multi-family homes, single-family homes, townhouses, mid-rise condominiums, high-rise multi-family condominiums and mixed-use (residential and commercial) developments. References in this Form 10-Q to “Comstock,” “Company,” “we,” “our” and “us” refer to Comstock Holding Companies, Inc. together in each case with our subsidiaries and any predecessor entities unless the context suggests otherwise.

The Company’s Class A common stock is traded on the NASDAQ Capital Market under the symbol CHCI and has no public trading history prior to December 17, 2004.

On September 25, 2015, the Company effected a 1-for-7 reverse stock split of its issued and outstanding shares of Class A common stock and Class B common stock. The Company’s Class A common stock continued trading on The Nasdaq Capital Market on a post-split basis on September 28, 2015. Throughout this quarterly report on Form 10-Q, a reference to a number of shares of the Company’s common stock, refers to the number of shares of common stock after giving effect to the Reverse Stock Split, unless otherwise indicated.

For the three and six months ended June 30, 2016 and 2015, comprehensive loss equaled net loss; therefore, a separate statement of comprehensive loss is not included in the accompanying consolidated financial statements.

Liquidity and Capital Resources

We require capital to operate, to post deposits on new potential acquisitions, to purchase and develop land, to construct homes, to fund related carrying costs and overhead and to fund various advertising and marketing programs to generate sales. These expenditures include payroll, community engineering, entitlement, architecture, advertising, utilities and interest as well as the construction costs of our homes. Our sources of capital include, and we believe will continue to include, private equity and debt placements (which has included significant participation from Company insiders), funds derived from various secured and unsecured borrowings to finance acquisition, development and construction on acquired land, cash flow from operations, which includes the sale and delivery of constructed homes, finished and raw building lots and the potential sale of public debt and equity securities. The Company is involved in ongoing discussions with lenders and equity sources in an effort to provide additional growth capital to fund various new business opportunities. See Note 14 in the accompanying consolidated financial statements for more details on our credit facilities and Note 12 in the accompanying consolidated financial statements for details on private placement offerings.

We have outstanding borrowings with various financial institutions and other lenders that have been used to finance the acquisition, development and construction of real estate projects. The Company has generally financed its development and construction activities on a single or multiple project basis so it is not uncommon for each of our projects or collection of our projects to have a separate credit facility. Accordingly, the Company typically has had numerous credit facilities and lenders.

As of June 30, 2016, the Company has $12.7 million of its credit facilities and project related loans scheduled to mature during the remainder of 2016. We are in active discussions with our lenders seeking long term extensions and modifications to the loans. These debt instruments impose certain restrictions on our operations, including speculative unit construction limitations, curtailment obligations, and financial covenant compliance. If we fail to comply with any of these restrictions, an event of default could occur. Additionally, events of default could occur if we fail to make required debt service

6

payments or if we fail to come to agreement on an extension on a certain facility prior to a given loan’s maturity date. Any event of default would likely render the obligations under these instruments due and payable as of that event. Any such event of default would allow certain of our lenders to exercise cross default provisions in our loan agreements with them, such that all debt with that institution could be called into default. We are anticipating that with the successful resolution of the debt extension discussions with our lenders, capital raises from our recent private placements, current available cash on hand, and additional cash from settlement proceeds at existing and under development communities, the Company will have sufficient financial resources to sustain its operations through the next 12 months, though no assurances can be made that the Company will be successful in its efforts. The Company will also focus on its cost structure in an effort to conserve cash and manage expenses. Such actions may include cost reductions and/or deferral arrangements with respect to current operating expenses. On July 20, 2016, the Company extended its revolving construction, acquisition, and development loan related to the Yorkshire project with Cardinal Bank, which had an initial maturity date of July 23, 2016, to October 23, 2016. This Yorkshire credit facility had an outstanding balance of $0.2 million at June 30, 2016. See Note 17 for further discussion regarding extensions and other subsequent events impacting our credit facilities.

Recent Developments

As of June 30, 2016, the Company reported total stockholders’ equity of $46. Thus, as of June 30, 2016, the Company did not meet the minimum of $2.5 million in stockholders’ equity required for continued listing on the Nasdaq Capital Market under Listing Rule 5550(b)(1), which is one of the alternative tests for continued listing on The Nasdaq Capital Market. Additionally, as of June 30, 2016, the Company did not meet the other alternative tests of market value of listed securities or net income from continuing operations under Listing Rule 5550(b) and therefore, was no longer in compliance with the continued listing rules. As of August 15, 2016, the Company is not in receipt of any communications from The Nasdaq Stock Market LLC (“Nasdaq”) regarding its non-compliance. The Company’s deficiency has no immediate effect on the listing of the Company’s shares of Class A common stock on Nasdaq. The deficiency is primarily the result of the Company’s redemptions of non-controlling interests (included as equity in the Company’s financial statements) for the six months ended June 30, 2016 of $2,717, coupled with a net operating loss for the six months ended June 30, 2016 of $2,749.

As disclosed in Note 17 to the accompanying consolidated financial statements, on August 15, 2016, the Company, through its subsidiary, Comstock Investors X, L.C. (“Investors X”), entered into subscription agreements with certain accredited investors, pursuant to which the subscribers purchased membership interests in Investors X for an aggregate capital raise of $14,500. Proceeds from the Investors X offering are to be used to provide the equity financing for the Company’s Townes at Totten Mews project, consisting of 40 townhomes in Washington, D.C., and the Company’s The Towns at 1333 project, consisting of 18 townhomes in City of Alexandria, Virginia (the “Projects”), scheduled for acquisition, development and construction activities commencing in the coming months. With completion of the Investors X offering as of August 15, 2016, the Company has regained compliance with the minimum stockholders’ equity requirement of $2.5 million for continued listing under Listing Rule 5550(b)(1). The Company believes the actions it has undertaken have addressed the deficiencies noted above. However, there can be no assurances that the Company will maintain in compliance. If the Company is unsuccessful in its efforts to maintain compliance, a delisting of our common stock could adversely affect the market liquidity of our common stock, our ability to obtain financing and our ability to fund our operations. See additional risk factors disclosed under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2015.

Use of Estimates

Our financial statements have been prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts for the reporting periods. We base these estimates and judgments on historical experience and on various other factors that we believe to be reasonable under the circumstances. We evaluate these estimates and judgements on an ongoing basis. Actual results may differ from those estimates under different assumptions or conditions.

Recently Issued Accounting Standards

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (“ASU 2016-02”). The core principle of the standard is that a lessee should recognize the assets and liabilities that arise from leases. A lessee should recognize in its statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. ASU 2016-02 is effective for public companies for annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact this new standard will have on our consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-07, Investments – Equity Method and Joint Ventures (“ASU 2016-07”). The amendments in this ASU require, among other items, that an equity method investor add the cost of acquiring an additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting, as well as eliminates certain other existing requirements. ASU 2016-07 is effective for all companies for annual reporting periods beginning after December 15, 2016 and interim periods within those fiscal years. The adoption of this standard is not expected to have a material impact on our consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (“ASU 2016-08”). The core principle of the standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2016-08 is effective for public companies for annual reporting periods beginning after December 15, 2017, and early adoption is permitted. We are currently evaluating the impact this new standard will have on our consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (“ASU 2016-09”). The standard simplifies and clarifies certain aspects of share-based payment accounting and presentation. ASU 2016-09 is effective for public companies for annual reporting periods beginning after December 15, 2016 and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact this new standard will have on our consolidated financial statements.

We assessed other accounting pronouncements issued or effective during the six months ended June 30, 2016 and deemed they were not applicable to us and are not anticipated to have a material effect on our consolidated financial statements.

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2. REAL ESTATE INVENTORIES

After impairments and write-offs, real estate held for development and sale consists of the following:

	June 30, 2016		December 31, 2015
Land and land development costs	$	18,909	$	22,896
Cost of construction (including capitalized interest and real estate taxes)		16,005		15,327
	$	34,914	$	38,223

3. WARRANTY RESERVE

Warranty reserves for units settled are established to cover potential costs for materials and labor with regard to warranty-type claims expected to arise during the typical one-year warranty period provided by the Company or within the two-year statutorily mandated structural warranty period for condominiums. Because the Company typically subcontracts its homebuilding work, subcontractors are required to provide the Company with an indemnity and a certificate of insurance prior to receiving payments for their work. Claims relating to workmanship and materials are generally the primary responsibility of the subcontractors and product manufacturers. The warranty reserve is established at the time of closing, and is calculated based upon historical warranty cost experience and current business factors. This reserve is an estimate and actual warranty costs could vary from these estimates. Variables used in the calculation of the reserve, as well as the adequacy of the reserve based on the number of homes still under warranty, are reviewed on a periodic basis. Warranty claims are directly charged to this reserve as they arise.

The following table is a summary of warranty reserve activity which is included in accounts payable and accrued liabilities within the consolidated balance sheets:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
Balance at beginning of period	$	314		$	362		$	312		$	492
Additions		42			50			86			92
Releases and/or charges incurred		(62	)		(118	)		(104	)		(290	)
Balance at end of period	$	294		$	294		$	294		$	294

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4. CAPITALIZED INTEREST AND REAL ESTATE TAXES

Interest and real estate taxes incurred relating to the development of lots and parcels are capitalized to real estate inventories during the active development period, which generally commences when borrowings are used to acquire real estate assets and ends when the properties are substantially complete or the property becomes inactive. A project becomes inactive when development and construction activities have been suspended indefinitely. Interest is capitalized based on the interest rate applicable to specific borrowings or the weighted average of the rates applicable to other borrowings during the period. Interest and real estate taxes capitalized to real estate inventories are expensed as a component of cost of sales as related units are sold.

The following table is a summary of interest and real estate taxes incurred and capitalized and interest and real estate taxes expensed for units settled:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Total interest incurred and capitalized	$	857	$	866	$	1,593	$	1,627
Total real estate taxes incurred and capitalized		95		121		117		189
Total interest and real estate taxes incurred and capitalized	$	952	$	987	$	1,710	$	1,816
Interest expensed as a component of cost of sales	$	414	$	376	$	706	$	756
Real estate taxes expensed as a component of cost of sales		52		54		101		92
Interest and real estate taxes expensed as a component of cost of sales	$	466	$	430	$	807	$	848

9

The amount of interest from entity level borrowings that we are able to capitalize in accordance with Accounting Standards Codification (“ASC”) 835, is dependent upon the average accumulated expenditures that exceed project specific borrowings. Additionally, when a project becomes inactive, its interest, real estate taxes and indirect production overhead costs are no longer capitalized but rather expensed in the period they are incurred.

The following is a breakdown of the interest and real estate taxes expensed in the consolidated statements of operations for the periods presented:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Interest incurred and expensed from entity level borrowings	$	304	$	154	$	512	$	317
Interest incurred and expensed for inactive projects		—		—		5		4
Real estate taxes incurred and expensed for inactive projects		2		2		5		5
	$	306	$	156	$	522	$	326

5. OTHER ASSETS

Other assets consist of the following:

	June 30,			December 31,
	2016			2015
Restricted escrow deposits	$	—		$	37
Deferred financing cost		860			1,259
Deposits on land purchase options		1,035			760
Loan commitment		1,286			1,286
Other		3,007			2,695
		6,188			6,037
Less : accumulated amortization		(1,296	)		(1,522	)
	$	4,892		$	4,515

6. LOSS PER SHARE

The weighted average shares and share equivalents used to calculate basic and diluted income per share for the three and six months ended June 30, 2016 and 2015 are presented in the accompanying consolidated statements of operations. Restricted stock awards, stock options and warrants for the three and six months ended June 30, 2016 and 2015 are included in the diluted earnings per share calculation using the treasury stock method and average market prices during the periods, unless their inclusion would be anti-dilutive.

For the three and six months ended June 30, 2016, there were no anti-dilutive shares, therefore, no shares were excluded from the computation of dilutive earnings per share. As a result of the net losses from continuing operations for the three months ended June 30, 2015, approximately 36 restricted stock awards were excluded from the computation of the dilutive earnings per share because their inclusion would have been anti-dilutive. As a result of the net losses from continuing operations for the six months ended June 30, 2015, approximately 47 restricted stock awards, 59 stock options and 5 warrants, respectively, were excluded from the computation of the dilutive earnings per share because their inclusion would have been anti-dilutive.

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7. SEGMENT DISCLOSURES

We operate our business through three segments: Homebuilding, Multi-family, and Real Estate Services. We are currently focused on the Washington, D.C. area market.

In our Homebuilding segment, we develop properties with the intent to sell as fee-simple properties or condominiums to individual buyers or to private or institutional investors. Our for-sale products are designed to attract first-time, early move-up, and secondary move-up buyers. We focus on products that we are able to offer for sale in the middle price points within the markets where we operate, avoiding the very low-end and high-end products.

In our Multi-family segment, we focus on projects ranging from approximately 75 to 200 units in locations that are supply constrained with demonstrated demand for stabilized assets. We seek opportunities in the multi-family rental market where our experience and core capabilities can be leveraged. We will either position the assets for sale when completed or operate the asset within our own portfolio. Operating the asset for our own account affords us the flexibility of converting the units to condominiums in the future.

In our Real Estate Services segment, we pursue projects in all aspects of real estate management, including strategic planning, land development, entitlement, property management, sales and marketing, workout and turnaround strategies, financing and general construction. We are able to provide a wide range of construction management and general contracting services to other property owners.

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The following table includes the Company’s three reportable segments of Homebuilding, Multi-family, and Real Estate Services. Each of these segments operates within the Company’s single Washington, D.C. area reportable geographic segment.

						Real
						Estate
	Homebuilding			Multi-family		Services		Total
Three Months Ended June 30, 2016
Gross revenue	$	9,699		$	—	$	279	$	9,978
Gross profit		514			—		126		640
Net (loss) income		(1,587	)		—		126		(1,461	)
Depreciation and amortization		49			—		—		49
Interest expense		304			—		—		304
Total assets		47,134			—		205		47,339
Three Months Ended June 30, 2015
Gross revenue	$	12,115		$	—	$	449	$	12,564
Gross profit		1,521			—		261		1,782
Net (loss) income		(535	)		—		261		(274	)
Depreciation and amortization		94			—		—		94
Interest expense		154			—		—		154
Total assets		61,799			—		210		62,009
Six Months Ended June 30, 2016
Gross revenue	$	19,222		$	—	$	462	$	19,684
Gross profit		1,392			—		218		1,610
Net (loss) income		(2,967	)		—		218		(2,749	)
Depreciation and amortization		104			—		—		104
Interest expense		517			—		—		517
Total assets		47,134			—		205		47,339
Six Months Ended June 30, 2015
Gross revenue	$	22,125		$	—	$	756	$	22,881
Gross profit		2,941			—		403		3,344
Net (loss) income		(1,345	)		—		403		(942	)
Depreciation and amortization		205			—		—		205
Interest expense		321			—		—		321
Total assets		61,799			—		210		62,009

The Company allocates sales, marketing and general and administrative expenses to the individual segments based upon specifically allocable costs.

8. INCOME TAX

During the three and six months ended June 30, 2016, the Company recognized income tax expense of $32 and $57, respectively, and as of June 30, 2016 the effective tax rate is (35%). During the three months ended June 30, 2015, the Company recognized income tax expense of $57. During the six months ended June 30, 2015, the Company recorded a net income tax benefit of $13 which resulted from an out of period adjustment to reverse the valuation allowance, resulting in the recognition of a deferred tax benefit of $121, offset by income tax expense of $108, both related to the New Hampshire Avenue project in Washington, D.C. Because this error was not material to any previously filed consolidated financial statements and the impact of correcting this error in 2015 was not material, the Company recorded the correction in the first quarter of 2015. The effective tax rate for the three and six month periods ended June 30, 2015 was 3% and 1%, respectively.

The Company has not recorded any accruals related to uncertain tax positions as of June 30, 2016 and 2015. We file U.S. and state income tax returns in jurisdictions with varying statutes of limitations. The 2012 through 2015 tax years remain subject to examination by federal and most state tax authorities.

9. COMMITMENTS AND CONTINGENCIES

Litigation

Currently, we are not subject to any material legal proceedings. From time to time, however, we are named as a defendant in legal actions arising from our normal business activities. Although we cannot accurately predict the amount of our liability, if any, that could arise with respect to legal actions pending against us; we do not expect that any such liability will have a material adverse effect on our financial position, operating results and cash flows. We believe that we have obtained adequate insurance coverage, rights to indemnification, or where appropriate, have established appropriate reserves in connection with any such legal proceedings.

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Letters of credit, performance bonds and compensating balances

The Company has commitments as a result of contracts with certain third parties, primarily local governmental authorities, to meet certain performance criteria outlined in such contracts. The Company is required to issue letters of credit and performance bonds to these third parties as a way of ensuring that the commitments entered into are met. These letters of credit and performance bonds issued in favor of the Company and/or its subsidiaries mature on a revolving basis, and if called into default, would be deemed material if assessed against the Company and/or its subsidiaries for the full amounts claimed. In some circumstances, we have negotiated with our lenders in connection with foreclosure agreements for the lender to assume certain liabilities with respect to the letters of credit and performance bonds. We cannot accurately predict the amount of any liability that could be imposed upon the Company with respect to maturing or defaulted letters of credit or performance bonds. At June 30, 2016 and 2015, the Company had $1.9 million and $3.7 million in letters of credit, respectively. At June 30, 2016 and 2015, the Company had $4.3 million and $6.0 million in outstanding performance and payment bonds, respectively. No amounts have been drawn against the outstanding letters of credit or performance bonds.

We are required to maintain compensating balances in escrow accounts as collateral for certain letters of credit, which are funded upon settlement and release of units. The cash contained within these escrow accounts is subject to withdrawal and usage restrictions. As of June 30, 2016 and December 31, 2015, we had approximately $1.1 million and $1.0 million, respectively, in these escrow accounts, which are included in ‘Restricted cash’ in the accompanying consolidated balance sheets.

10. RELATED PARTY TRANSACTIONS

The Company leases its corporate headquarters from an affiliated entity that is wholly-owned by our Chief Executive Officer. Future minimum lease payments under this lease are as follows:

2016	$	167
2017		167
Total	$	334

For the three months ended June 30, 2016 and 2015, total payments made under this lease agreement were $81 and $79, respectively. For the six months ended June 30, 2016 and 2015, total payments made under this lease agreement were $162 and $158, respectively. As of June 30, 2016 and December 31, 2015, the Company recorded a straight–line rent payable of $19 and $24, respectively, which is included in ‘Accounts payable and accrued liabilities’ in the accompanying consolidated balance sheets.

On February 23, 2009, Comstock Homes of Washington, L.C., a wholly-owned subsidiary of the Company, entered into a Services Agreement with Comstock Asset Management, L.C., an entity wholly-owned by our Chief Executive Officer, to provide services related to real estate development and improvements, including legal, accounting, marketing, information technology and other additional support services. For the three months ended June 30, 2016 and 2015, the Company billed Comstock Asset Management, L.C. $279 and $220, respectively, for services and out-of-pocket expenses. For the six months ended June 30, 2016 and 2015, Comstock Asset Management, L.C. was billed $462 and $373, respectively, for services and out-of-pocket expenses incurred. Revenues from this arrangement are included within ‘Revenue – other’ in the accompanying consolidated statements of operations. As of June 30, 2016 and December 31, 2015, the Company was owed $203 and $81, respectively, under this contract, which is included in ‘Trade receivables’ in the accompanying consolidated balance sheets.

On October 17, 2014, Comstock Growth Fund (“CGF”), an administrative entity managed by the Company, entered into a subscription agreement with Comstock Development Services, LC (“CDS”), an entity wholly-owned by our Chief Executive Officer, pursuant to which CDS purchased membership interests in CGF for a principal amount of $10 million. Other purchasers who purchased interest in the private placement included members of the Company’s management and board of directors and other third-party, accredited investors for an additional principal amount of $6.2 million (the “CGF Private Placement”).

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Simultaneously, on October 17, 2014, the Company entered into an unsecured promissory note with CGF whereby CGF made a loan to the Company in the initial principal amount of $10 million and a maximum capacity of up to $20 million. On December 18, 2014, the loan agreement was amended and restated to provide for a maximum capacity of $25 million. All of the other terms of the unsecured promissory note remained the same. The Company borrowed an additional principal loan amount of $6.2 million under the amended and restated CGF promissory note bringing the total aggregate principal amount borrowed to $16.2 million. The CGF loan has a three year term carrying a floating interest rate of LIBOR plus 9.75% with a 10% floor. The loan requires an annual principal repayment in the amount of 10% of the average outstanding balance and a monthly interest payment that will be made in arrears. Purchasers other than CDS who purchased membership interests in CGF received warrants that represent the right to purchase an amount of shares of our Class A common stock, depending upon the investment amount. As of June 30, 2016 and December 31, 2015, we had 76 warrants outstanding, representing the right to purchase shares of our Class A common stock having an aggregate fair value of $433, which was considered as a debt discount. The Company amortizes the debt discount over the three year term of the loan to interest expense. As of June 30, 2016, $12.6 million was outstanding in principal and accrued interest, net of discounts. For the three months ended June 30, 2016 and 2015, the Company made interest payments of $0.4 million on the CGF loan. For the six months ended June 30, 2016 and 2015, the Company made interest payments of $0.8 million on the CGF loan. During the three months ended June 30, 2016, the Company made the first principal curtailment to CGF in the amount of $1.6 million.

On December 18, 2014, CGF entered into amended and restated subscription agreements with CDS, members of the Company’s management and board of directors and the other third party accredited investors who participated in the CGF Private Placement (the “Amended CGF Private Placement”). Under the Amended CGF Private Placement, in addition to the warrants described above, the Company entered into a commitment to grant 226,857 shares of our Class A common stock to the purchasers in the Amended CGF Private Placement. On May 12, 2015, the Company issued 226,857 un-registered shares of its Class A common stock to the purchasers in the Amended CGF Private Placement. The Amended CGF Private Placement was closed for additional investments on May 15, 2015.

On December 29, 2015, the Company and Stonehenge Funding, L.C. (“Stonehenge”), an entity wholly owned by our Chief Executive Officer, entered into a Note Exchange and Subscription Agreement pursuant to which the note in the original principal amount of $4,500 issued to the Company by Stonehenge was exchanged for 772,210 shares of the Company’s Series B Non-Convertible Preferred Stock, par value $0.01 per share and a stated value of $5.00 per share (the “Series B Preferred Stock”). The number of shares of Series B Preferred Stock received by Stonehenge in exchange for the note represented the principal amount outstanding plus accrued interest under the note as of December 29, 2015, which was $3,861. The note was cancelled in its entirety on December 29, 2015. The holders of Series B Preferred Stock earn dividends at a rate of 8.75% per annum accruing from the effective date of the Note Exchange and Subscription Agreement. The dividends accrue whether or not declared. The dividends are also cumulative and payable quarterly in arrears at the last day of each quarterly reporting period in the form of additional Series B Preferred Stock (PIK) or in the sole discretion of the board of directors, in cash. For the three and six months ended June 30, 2016, 17,221 and 34,437 shares of the Series B Preferred Stock, respectively, with a liquidation value of $86 and $172, respectively, were paid in-kind, and are included in ‘Stockholders’ equity’ in the accompanying consolidated balance sheets.

On December 29, 2015, Comstock Growth Fund II, L.C. (“CGF II”), an administrative entity managed by the Company was created for the purpose of extending loans to the Company. CGF II entered into a subscription agreement with CDS pursuant to which CDS purchased membership interests in CGF II for an initial aggregate principal amount of $5.0 million (the “CGF II Private Placement”).

Simultaneously, on December 29, 2015, the Company and CGF II entered into an unsecured revolving line of credit promissory note in the initial principal amount of $5.0 million and a maximum amount available for borrowing of up to $10.0 million with a two year term, which may be extended an additional year upon payment of a $10 extension fee. The interest rate is 10% per annum, and interest payments will be accrued and paid in-kind monthly for the first year, and then paid current monthly in arrears beginning December 31, 2016. The Company pays an origination fee of 1% on the amount of the advance, up to an aggregate amount of $100, and a maintenance fee of 0.25% of the average outstanding balance of the loan on a quarterly basis. As of June 30, 2016 and December 31, 2015, $3.1 million and $5.0 million, respectively, was outstanding in principal and accrued interest. See Note 14 to the consolidated financial statements for further discussion of transactions entered with CGF II.

See Note 12 to the consolidated financial statements for a description of the Comstock VII and Comstock VIII Private Placements, which included certain of our officers and directors, and Note 14 to the consolidated financial statements for a description of the CGF Private Placement and the CGF II Private Placement.

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11. NOTE RECEIVABLE

The Company originated a note receivable to a third party in the amount of $180 in September 2014. This note has a maturity date of September 2, 2019 and is payable in monthly installments of principal and interest of $3. This note bears a fixed interest rate of 6% per annum. As of June 30, 2016 and December 31, 2015, the outstanding balance of the note was $124 and $141, respectively, and is included within ‘Other assets’ in the accompanying consolidated balance sheets. The interest income of $2 for the three months ended June 30, 2016 and 2015, is included in ‘Other income, net’ in the consolidated statements of operations. The interest income of $4 and $5 for the six months ended June 30, 2016 and 2015, respectively, is included in ‘Other income, net’ in the consolidated statements of operations.

12. VARIABLE INTEREST ENTITY

Included within the Company’s real estate inventories at June 30, 2016 and December 31, 2015 are several projects that are determined to be a variable interest entity (“VIE”). These entities have been established to own and operate real estate property and were deemed VIEs primarily based on the fact that the equity investment at risk is not sufficient to permit the entities to finance their activities without additional financial support. The Company determined that it was the primary beneficiary of these VIEs as a result of its majority voting and complete operational control of the entities.

On August 23, 2012, the Company formed New Hampshire Ave. Ventures, LLC, a joint venture of its subsidiary, Comstock Ventures XVI, L.C., and 6000 New Hampshire Avenue, LLC, for the purpose of acquiring, developing and constructing a 111-unit project (the “NHA Project”) in Washington, D.C. The Company evaluated the joint venture and determined that the equity investment at risk is not sufficient to permit the entity to finance its activities without additional financial support. The Company determined that it was the primary beneficiary of the VIE as a result of its complete operational control of the activities that most significantly impact the economic performance and obligation to absorb losses, or receive benefits. The Company contributed its ownership interest in Comstock Ventures XVI, L.C. to Comstock Investors VII, L.C. (“Comstock VII”) on March 13, 2013. During the six months ended June 30, 2016 and 2015, New Hampshire Ave. Ventures, LLC distributed $1.9 million and $1.1 million, respectively, to its non-controlling interest member, 6000 New Hampshire Avenue, LLC.

On September 27, 2012, the Company formed Comstock Eastgate, L.C., a joint venture of the Company and BridgeCom Development II, LLC, for the purpose of acquiring, developing and constructing 66 condominium units in Loudoun County, Virginia. The Company evaluated the joint venture and determined that the equity investment at risk is not sufficient to permit the entity to finance its activities without additional financial support. The Company determined that it was the primary beneficiary as a result of its complete operational control of the activities that most significantly impact the economic performance and obligation to absorb losses, or receive benefits. During the six months ended June 30, 2016 and 2015, no distributions were made to the non-controlling interest member, BridgeCom Development II, LLC. The Company exited the Eastgate project in the second quarter of 2014 after closing on all 66 units.

In March 2013, Comstock Investors VII entered into subscription agreements with certain accredited investors (“Comstock VII Class B Members”) pursuant to which the Comstock VII Class B Members purchased membership interests in Comstock VII for an aggregate amount of $7.3 million (the “Comstock VII Private Placement”). The proceeds from the Comstock VII Private Placement were used for the construction of the Company’s following projects: Townes at Shady Grove Metro in Rockville, Maryland consisting of 36 townhomes, Momentum | Shady Grove consisting of 117 condominium units, City Homes at the Hampshires in Washington, D.C. consisting of 38 single family residences, Townes at the Hampshires in Washington, D.C. consisting of 73 townhomes, Single Family Homes at the Falls Grove project in Prince William County, Virginia consisting of 19 single family homes and Townes at the Falls Grove project in Prince William County consisting of 110 townhomes (collectively, the “Investor VII Projects”). In connection with the Comstock VII Private Placement, the Company issued 17 warrants for the purchase of shares of the Company’s Class A common stock to the non-affiliated accredited investors, having an aggregate fair value of $146. In October 2014, the Company fully redeemed the equity interest of the Comstock VII Class B Members.

In December 2013, Comstock Investors VIII, L.C. (“Comstock VIII”) entered into subscription agreements with certain accredited investors (“Comstock VIII Class B Members”), pursuant to which Comstock VIII Class B Members purchased membership interests in Comstock VIII for an aggregate amount of $4.0 million (the “Comstock VIII Private Placement”). In connection with the Comstock VIII Private Placement, the Company issued 15 warrants for the purchase of shares of the Company’s Class A common stock to the non-affiliated accredited investors, having an aggregate fair value of $131. Comstock VIII Class B Members included unrelated third-party accredited investors along with members of the Company’s board of directors and the Company’s former Chief Financial Officer and the Company’s former Chief Operating Officer. The Comstock VIII Class B Members are entitled to a cumulative, preferred return of 20% per annum, compounded annually on their capital account balances. The Company has the right to repurchase the interests of the Comstock VIII Class B Members at any time, provided that (i) all of the Comstock VIII Class B Members’ interests are acquired, (ii) the purchase is made in cash and (iii) the purchase price equals the Comstock VIII Class B Members’ capital accounts plus an amount necessary to cause the preferred return to equal a cumulative cash on cash return equal to

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20% per annum. The proceeds from the Comstock VIII Private Placement are being used for the current and planned construction of the following projects: The Townes at HallCrest in Sterling, Virginia consisting of 42 townhome units and Townes at Maxwell Square Condominium in Frederick, Maryland consisting of 45 townhome condominium units (collectively, the “Investor VIII Projects”). Proceeds of the Comstock VIII Private Placement are being utilized (A) to provide capital needed to complete the Investor VIII Projects in conjunction with project financing for the Investor VIII Projects, (B) to reimburse the Company for prior expenditures incurred on behalf of the Investor VIII Projects, and (C) for general corporate purposes of the Company. The Company evaluated Comstock VIII and determined that the equity investment at risk is not sufficient to permit the entity to finance its activities without additional financial support and the Company was the primary beneficiary as a result of its complete operational control of the activities that most significantly impact the economic performance and its obligation to absorb losses, or receive benefits. Accordingly, the Company consolidates this entity. During the six months ended June 30, 2016, the Company paid distributions in the amount of $0.8 million, to its non-controlling interest member, Comstock VIII Class B Members. No distributions were paid to the Comstock VIII Class B Members during the six months ended June 30, 2015.

In June 2015, Comstock Investors IX, L.C. (“Comstock IX”) entered into subscription agreements with third-party accredited investors (“Comstock IX Class B Members”), pursuant to which Comstock IX Class B Members purchased membership interests in Comstock IX for an aggregate amount of $2.5 million (the “Comstock IX Private Placement”). The Comstock IX Class B Members are entitled to a cumulative, preferred return of 20% per annum, compounded annually on their capital account balances. The Company has the right to repurchase the interests of the Comstock IX Class B Members at any time, provided that (i) all of the Comstock IX Class B Members’ interests are acquired, (ii) the purchase is made in cash and (iii) the purchase price equals the Comstock IX Class B Members’ capital accounts plus any amount necessary to cause the preferred return to equal a cumulative cash on cash return equal to 20% per annum. The proceeds from the Comstock IX Private Placement are being utilized (A) for the current and planned construction of the Stone Ridge project of 35 single family homes in Loudoun County Virginia; (B) to reimburse the Company for prior expenditures incurred on behalf of the Stone Ridge project; and (C) for general corporate purposes of the Company. The Company evaluated Comstock IX and determined that the equity investment at risk is not sufficient to permit the entity to finance its activities without additional financial support and the Company was the primary beneficiary as a result of its complete operational control of the activities that most significantly impact the economic performance and its obligation to absorb losses or receive benefits. Accordingly, the Company consolidates this entity. No distributions have been paid to the Comstock IX Class B Members through June 30, 2016.

The distributions to and contributions from the VIEs discussed above are included within the ‘non-controlling interest’ in the consolidated balance sheets for the periods presented.

At June 30, 2016 and December 31, 2015, total assets of these VIEs were approximately $18.6 million and $22.7 million, respectively, and total liabilities were approximately $11.8 million and $13.0 million, respectively. The classification of these assets is primarily within ‘Real estate inventories’ and the classification of liabilities are primarily within ‘Accounts payable and accrued liabilities’ and ‘Notes payable – secured by real estate inventories’ in the accompanying consolidated balance sheets.

13. UNCONSOLIDATED JOINT VENTURE

The Company accounts for its interest in its title insurance joint venture using the equity method of accounting and periodically adjusts the carrying value for its proportionate share of earnings, losses and distributions. The carrying value of the investment is included within ‘Other assets’ in the accompanying consolidated balance sheets and our proportionate share of the earnings from the investment are included in ‘Other income, net’ in the accompanying consolidated statements of operations for the periods presented. Our share of the earnings for the three and six months ended June 30, 2016 are $8 and $16, respectively. During the three and six months ended June 30, 2015, our share of the earnings from this joint venture was $35 and $54, respectively. During the six months ended June 30, 2016 and 2015, the Company collected total distributions of $66 and $35, respectively, as a return on investment.

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Summarized financial information for the unconsolidated joint venture is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Statement of Operations:
Total net revenue	$	45	$	98	$	90	$	172
Total expenses		29		28		58		65
Net income	$	16	$	70	$	32	$	107
Comstock Holding Companies, Inc. share of net income	$	8	$	35	$	16	$	54

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14. CREDIT FACILITIES

Notes payable consisted of the following:

	June 30, 2016		December 31, 2015
Construction revolvers	$	6,039	$	5,832
Development and acquisition notes		10,827		13,833
Mezzanine notes		1,400		1,367
Line of credit		3,580		3,791
Total secured notes		21,846		24,823
Unsecured financing		1,336		1,548
Notes payable, unsecured, net of $2.3 million discount		15,692		19,028
Total notes payable	$	38,874	$	45,399

As of June 30, 2016, maturities and/or curtailment obligations of all borrowings are as follows:

2016	$	12,707
2017		23,880
2018		2,287
Total	$	38,874

As of June 30, 2016, the Company had $12.7 million of its credit facilities and project related loans scheduled to mature during the remainder of 2016. We are in active discussions with our lenders seeking long-term extensions with respect to our loans and credit facilities maturing in 2016. The current performance of the projects and our early discussions with our lenders indicates that we will likely be successful in extending or modifying these loans, though no assurances can be made that we will be successful in these efforts. See Note 17 for further discussion regarding extensions and other subsequent events impacting our credit facilities.

Construction, development and mezzanine debt – secured

The Company enters into secured acquisition and development loan agreements from time to time to purchase and develop land parcels. In addition, the Company enters into secured construction loan agreements for the construction of its real estate inventories. The loans are repaid with proceeds from home closings based upon a specific release price, as defined in each respective loan agreement.

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As of June 30, 2016 and December 31, 2015, the Company had secured construction revolving credit facilities with a maximum loan commitment of $39.6 million and $40.5 million, respectively. The Company may borrow under these facilities to fund its home building activities. The amount the Company may borrow is subject to applicable borrowing base provisions and the number of units under construction, which may also limit the amount available or outstanding under the facilities. The facilities are secured by deeds of trust on the real property and improvements thereon, and the borrowings are repaid with the net proceeds from the closings of homes sold, subject to a minimum release price. As of June 30, 2016 and December 31, 2015, the Company had approximately $33.6 million and $34.7 million, respectively, of unused construction loan commitments. The Company had $6.0 million and $5.8 million of outstanding construction borrowings as of June 30, 2016 and December 31, 2015, respectively. Interest rates charged under these facilities include the London Interbank Offered Rate (“LIBOR”) and prime rate pricing options, subject to minimum interest rate floors. At June 30, 2016 and December 31, 2015, the weighted average interest rate on the Company’s outstanding construction revolving facilities was 4.7% and 4.8% per annum, respectively. The construction credit facilities have maturity dates ranging from September 2016 to March 2018, including extensions subject to the Company meeting certain conditions.

As of June 30, 2016 and December 31, 2015, the Company had approximately $37.8 million of aggregate acquisition and development maximum loan commitments of which $10.8 million and $13.8 million, respectively, were outstanding. These loans have maturity dates ranging from July 2016 to March 2018, including extensions subject to certain conditions, and bear interest at a rate based on LIBOR and prime rate pricing options, with interest rate floors ranging from 4.25% to 5.5% per annum. As of June 30, 2016 and December 31, 2015, the weighted average interest rate was 4.7% per annum.

As of June 30, 2016, the Company had one mezzanine loan that is being used to finance the development of the Momentum | Shady Grove project. The maximum principal commitment amount of this loan was $1.1 million, of which $1.2 million and $1.1 million of principal and accrued interest was outstanding at June 30, 2016 and December 31, 2015, respectively. This financing carries an annual interest rate of 12% of which 6% is paid on a monthly basis with the remaining 6% being accrued and paid at maturity. This financing has a maturity date of December 31, 2016 and is guaranteed by the Company and our Chief Executive Officer.

Line of credit – secured

At June 30, 2016 and December 31, 2015, the Company had a secured revolving line of credit with a maximum capacity of $4.0 million, of which $3.6 million and $3.8 million was outstanding at June 30, 2016 and December 31, 2015, respectively. This line of credit is secured by the first priority security interest in the Company’s wholly owned subsidiaries’ in the Washington, D.C. metropolitan area and guaranteed by our Chief Executive Officer. The Company uses this line of credit to finance the predevelopment related expenses and deposits for current and future projects and bears a variable interest rate tied to a one-month LIBOR plus 3.25% per annum, with an interest rate floor of 5.0%. This line of credit calls for the Company to adhere to financial covenants, as defined in the loan agreement such as, minimum net worth and minimum liquidity, measured quarterly and minimum EBITDA measured on an annual basis and matures on December 31, 2016. The Company obtained a waiver from the financial institution for not meeting the minimum liquidity measure as of June 30, 2016, but was in compliance with the minimum net worth requirement as dictated by the line of credit agreement as of June 30, 2016.

Unsecured note

As of June 30, 2016 and December 31, 2015, the Company had $1.3 million and $1.5 million, respectively, in outstanding balances under a 10-year unsecured note with a bank. Interest is charged on this financing on an annual basis at the Overnight LIBOR rate plus 2.2%. At June 30, 2016 and December 31, 2015, the interest rate was 2.6% and 2.5% per annum, respectively. The maturity date of this financing is December 28, 2018. The Company is required to make monthly principal and interest payments through maturity.

Notes payable to affiliate – unsecured

Comstock Growth Fund

On October 17, 2014, CGF entered into a subscription agreement with CDS, pursuant to which CDS purchased membership interests in CGF for a principal amount of $10.0 million (the “CGF Private Placement”). Other investors who subsequently purchased interest in the CGF Private Placement included members of the Company’s management and board of directors and other third party accredited investors for an additional principal amount of $6.2 million.

On October 17, 2014, the Company entered into an unsecured promissory note with CGF whereby CGF made a loan to the Company in the initial principal amount of $10.0 million and a maximum amount available for borrowing of up to $20.0 million with a three year term (the “Original Promissory Note”). On December 18, 2014, the loan agreement was amended and restated to provide for a maximum capacity of $25 million. The loan bears interest at a floating rate based on the 30 day LIBOR plus 9.75% per annum with a

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10% floor per annum. Interest payments will be made monthly in arrears. There is a principal curtailment requirement of 10% annually based on the average outstanding balance for the prior year. The loan will be used by the Company (i) to finance the Company’s current and future development pipeline, (ii) to repay all or a portion of the Company’s prior private placements; (iii) to repay all or a portion of the Company’s project mezzanine loans, and (iv) for general corporate purposes. The Company is the administrative manager of CGF but does not own any membership interests. The Company had approximately $12.6 million and $14.1 million of outstanding borrowings, net of discounts, as of June 30, 2016 and December 31, 2015, respectively. As of June 30, 2016 and December 31, 2015, the interest rate was 11.1% and 10.0% per annum, respectively. For the three months ended June 30, 2016 and 2015, the Company made interest payments of $0.4 million. For the six months ended June 30, 2016 and 2015, the Company made interest payments of $0.8 million. During the three months ended June 30, 2016, the Company made the first principal curtailment to CGF in the amount of $1.6 million.

Comstock Growth Fund II

On December 29, 2015, the Company entered into a revolving line of credit promissory note with CGF II whereby CGF II made a loan to the Company in the initial principal amount of $5.0 million and a maximum amount available for borrowing of up to $10.0 million with a two year term, which may be extended an additional year upon payment of a $10 extension fee. The interest rate is 10% per annum, and interest payments will be accrued and paid in kind monthly for the first year, and then paid current monthly in arrears beginning December 31, 2016. The Company pays an origination fee of 1% on the amount of the advance, up to an aggregate amount of $100, and a maintenance fee of 0.25% of the average outstanding balance of the loan on a quarterly basis. The capital provided to the Company by the loan will be used by the Company (i) to capitalize the Company’s current and future development pipeline, (ii) to repay all or a portion of the Company’s prior private placements, and (iii) for general corporate purposes. As of June 30, 2016 and December 31, 2015, $3.1 million and $5.0 million, respectively, was outstanding in principal and accrued interest. On January 8, 2016, the Company paid off the $5.0 million line of credit outstanding from CGF II at December 31, 2015 and concurrently, CDS redeemed all of its equity interest in CGF II.

On March 30, 2016, CDS repurchased a membership interest in CGF II for a principal amount of $3.0 million. Simultaneously, the Company received an advance of $3.0 million on its line of credit promissory note from CGF II.

15. FAIR VALUE DISCLOSURES

The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities are reasonable estimates of their fair values based on their short maturities. The fair value of fixed and floating rate debt is based on unobservable market rates (Level 3 inputs).

The fair value of the floating rate debt was estimated using a discounted cash flow analysis on the blended borrower rates currently available to the Company for loans with similar terms. The following table summarizes the carrying amount and the corresponding fair value of fixed and floating rate debt:

	June 30, 2016		December 31, 2015
Carrying amount	$	38,874	$	45,399
Fair value	$	39,318	$	45,166

Fair value estimates are made at a specific point in time, based on relevant market information about the financial instruments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

The Company may also value its non-financial assets and liabilities, including items such as real estate inventories and long lived assets, at fair value on a non-recurring basis if it is determined that impairment has occurred. Such fair value measurements use significant unobservable inputs and are classified as Level 3.

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16. RESTRICTED STOCK, STOCK OPTIONS AND OTHER STOCK PLANS

During the three and six months ended June 30, 2016 and 2015, the Company did not issue any stock options or restricted stock awards.

Stock-based compensation cost associated with restricted stock and stock options was recognized based on the fair value of the instruments over the instruments’ vesting period. The following table reflects the consolidated balance sheets and statements of operations line items for stock-based compensation cost for the periods presented:

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Real estate inventories - Assets	$	4	$	8	$	9	$	17
General and administrative - Expenses		15		59		41		135
	$	19	$	67	$	50	$	152

Under net settlement procedures currently applicable to our outstanding restricted stock awards for employees, upon each settlement date and election by the employees, restricted stock awards are withheld to cover the required withholding tax, which is based on the value of the restricted stock award on the settlement date as determined by the closing price of our Class A common stock on the trading day immediately preceding the applicable settlement date. The remaining amounts are delivered to the recipient as shares of our Class A common stock.

As of June 30, 2016, the weighted-average remaining contractual term of unexercised stock options was 5 years. As of June 30, 2016 and December 31, 2015, there was $0.1 million of unrecognized compensation cost related to stock grants.

17. SUBSEQUENT EVENTS

On July 20, 2016, the Company extended its revolving construction, acquisition, and development loans related to the Yorkshire project with Cardinal Bank. This loan had an initial maturity date of July 23, 2016 and the extension provides for a maturity date of October 23, 2016. As of June 30, 2016, we had $0.2 million in outstanding borrowings under this revolving credit facility.

During the fourth quarter of 2015, the Company wrote off $1.4 million of land purchase deposit paid to one of its communities in the Washington D.C. metropolitan area due to changes made to the scheduled lot take down strategy. In February 2016, two subsidiaries of the Company and a land seller filed claims and counterclaims against each other regarding land contract disputes. On July 29, 2016, the subsidiaries and the land seller entered into a settlement agreement whereby the Seller agreed to refund a portion of the deposit, $0.7 million, paid by Comstock and the land seller agreed to re-purchase 4 lots from Comstock. In consideration of the payments, the subsidiaries agreed to release Indemnity Deeds of Trust against the land seller’s other property and dismiss the litigation.

On August 15, 2016, Comstock Investors X, L.C. (“Investors X”), a subsidiary of the Company, entered into subscription agreements with certain accredited investors (the “Investors X Member(s)”), pursuant to which the Investors X Members purchased membership interests in Investors X for an aggregate capital raise of $14,500 (the “Investors X Private Placement”). The Investors X Members include an entity wholly owned by Christopher Clemente, the Chief Executive Officer of the Company. Upon closing the Investors X Private Placement, the Company issued warrants to purchase shares of the Company’s Class A Common Stock to the Investors X Members. The terms of the Investors X Private Placement provide that the warrants are to be ratably shared for each Investor X Member subscribing to a minimum, or exceeding, an initial investment amount of $1,000. The Warrants represent the right to purchase an aggregate amount of up to 100 shares of Class A Common Stock.

On August 15, 2016, Comstock Investors X, L.C. received $2,500 of the subscription proceeds from the Investors X Members. The subscription agreement for the Investors X Private Placement provides that the Comstock Investors X Members are entitled to a cumulative, compounded, preferred return on their capital account balances. The Company has the right to repurchase the interests of the Investors X Members, provided that (i) all of the Investor X Members’ interests are acquired, (ii) the purchase is made in cash and (iii) the purchase price equals the Investor X Members’ capital account plus accrued preferred return. Proceeds of the Investors X Private Placement are to be utilized (i) to provide acquisition and development capital needed to complete the Projects in conjunction with obtaining construction financing for the Projects, (ii) to reimburse the Company for prior expenditures incurred on behalf of the Projects, and (iii) for general corporate purposes of the Company.

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COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIES

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes appearing elsewhere in this report. This discussion and analysis contains forward-looking statements that involve risks and uncertainties. Please see “Cautionary Notes Regarding Forward-looking Statements” for more information. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors including, but not limited to, those discussed below and elsewhere in this report, particularly under the headings “Cautionary Notes Regarding Forward-looking Statements.” References to dollar amounts are in thousands except per share data, or as otherwise noted.

Cautionary Notes Regarding Forward-looking Statements

This report includes forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of words such as “anticipate,” “believe,” “estimate,” “may,” “ likely,” “intend,” “expect,” “will,” “should,” “seeks” or other similar words or expressions. Forward-looking statements are based largely on our expectations and involve inherent risks and uncertainties, many of which are beyond our control. You should not place undue reliance on any forward-looking statement, which speaks only as of the date made. Some factors which may affect the accuracy of the forward-looking statements apply generally to the real estate industry, while other factors apply specifically to us. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, without limitation: general economic and market conditions, including interest rate levels; our ability to service our debt; inherent risks in investment in real estate; our ability to compete in the markets in which we operate; economic risks in the markets in which we operate, including actions related to government spending; delays in governmental approvals and/or land development activity at our projects; regulatory actions; our ability to maintain compliance with stock market listing rules and standards; fluctuations in operating results; our anticipated growth strategies; shortages and increased costs of labor or building materials; the availability and cost of land in desirable areas; natural disasters; our ability to raise debt and equity capital and grow our operations on a profitable basis; and our continuing relationships with affiliates. Additional information concerning these and other important risk and uncertainties can be found under the heading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015. Our actual results could differ materially from these projected or suggested by the forward-looking statements. The Company undertakes no obligation to update publicly or revise any forward-looking statements in light of new information or future events, except as required by law.

Overview

We are a multi-faceted real estate development and services company. We have substantial experience with building a diverse range of products, including multi-family homes, single-family homes, townhouses, mid-rise condominiums, high-rise multi-family condominiums and mixed-use (residential and commercial) developments. We operate our business through three segments: Homebuilding, Multi-family and Real Estate Services as further discussed in Note 7 to the consolidated financial statements. We are currently focused in the Washington, D.C. metropolitan area, which is the seventh largest metropolitan statistical area in the United States.

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We are currently operating, or developing in multiple counties throughout the Washington, D.C. area market. The following table summarizes certain information for our owned or controlled communities as of June 30, 2016:

	Pipeline Report as of June 30, 2016
Project	State		Product Type (1)		Estimated Units at Completion		Units Settled		Backlog (8)		Units Owned Unsold		Units Under Control (2)		Total Units Owned, Unsettled and Under Control		Average New Order Revenue Per Unit to Date
City Homes at the Hampshires		DC		SF		38		38		—		—		—		—	$	728
Townes at the Hampshires (3)		DC		TH		73		73		—		—		—		—	$	551
Estates at Falls Grove		VA		SF		19		13		5		1		—		6	$	544
Townes at Falls Grove		VA		TH		110		62		12		36		—		48	$	301
Townes at Shady Grove Metro		MD		TH		36		26		—		10		—		10	$	626
Townes at Shady Grove Metro (4)		MD		SF		3		3		—		—		—		—	$	199
Momentum | Shady Grove Metro (5)		MD		Condo		110		—		—		110		—		110	$	—
Estates at Emerald Farms		MD		SF		84		78		4		2		—		6	$	413
Townes at Maxwell Square		MD		TH		45		41		4		—		—		4	$	421
Townes at Hallcrest		VA		TH		42		18		16		8		—		24	$	458
Estates at Leeland		VA		SF		24		2		6		16		—		22	$	450
Villas | Preserve at Two Rivers 28’		MD		TH		10		4		2		4		—		6	$	450
Villas | Preserve at Two Rivers 32’		MD		TH		10		8		—		2		—		2	$	505
Marrwood East (7)		VA		SF		35		—		1		34		—		35	$	591
Estates at Popkins Lane		VA		SF		12		—		—		—		12		12	$	—
Townes at Richmond Station		VA		TH		54		—		—		—		54		54	$	—
Richmond Station Multi-family		VA		MF		104		—		—		—		104		104	$	—
Townes at Totten Mews (6)		DC		TH		40		—		—		—		40		40	$	—
The Towns at 1333		VA		TH		18		—		—		—		18		18	$	—
The Woods at Spring Ridge		MD		SF		24		—		—		—		24		24	$	—
Total						891		366		50		223		252		525

(1) “SF” means single family home, “TH” means townhouse, “Condo” means condominium, “MF” means multi-family.

(2) Under land option purchase contract, not owned.

(3) 3 of these units are subject to statutory affordable dwelling unit program.

(4) Units are subject to statutory moderately priced dwelling unit program; not considered a separate community.

(5) 18 of these units are subject to statutory moderately priced dwelling unit program.

(6) 5 of these units are subject to statutory affordable dwelling unit program.

(7) 1 of these units is subject to statutory affordable dwelling unit program.

(8) “Backlog” means we have an executed order with a buyer but the settlement did not occur prior to report date.

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Results of Operations

Three and six months ended June 30, 2016 compared to three and six months ended June 30, 2015

Orders, cancellations and backlog

The following table summarizes certain information related to new orders, settlements, and backlog for the three and six month periods ended June 30, 2016 and 2015:

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Gross new orders		34		37		72		71
Cancellations		1		3		4		6
Net new orders		33		34		68		65
Gross new order revenue	$	15,353	$	18,105	$	31,441	$	35,035
Cancellation revenue	$	407	$	1,604	$	1,563	$	3,091
Net new order revenue	$	14,946	$	16,501	$	29,878	$	31,944
Average gross new order price	$	452	$	489	$	437	$	493
Settlements		21		25		43		46
Revenue - homebuilding	$	9,699	$	12,115	$	19,222	$	22,125
Average settlement price	$	462	$	485	$	447	$	481
Backlog units		50		43		50		43
Backlog revenue	$	21,514	$	22,340	$	21,514	$	22,340
Average backlog price	$	430	$	520	$	430	$	520

Revenue – homebuilding

At June 30, 2016, we had a total of 50 units in backlog to generate future revenue of $21.5 million as compared to $22.3 million from 43 units at June 30, 2015. Gross new order revenue, consisting of revenue from all units sold, for the six months ended June 30, 2016 was $31.4 million on 72 units as compared to $35.0 million on 71 units for the six months ended June 30, 2015. Gross new order revenue for the three months ended June 30, 2016 was $15.4 million on 34 units as compared to $18.1 million on 37 units for the three months ended June 30, 2015. Net new order revenue, representing revenue for all units sold less revenue from cancellations, for the three months ended June 30, 2016 was $14.9 million on 33 units as compared to $16.5 million on 34 units for the three months ended June 30, 2015. Net new order revenue for the six months ended June 30, 2016 was $29.9 million on 68 units as compared to $31.9 million on 65 units for the six months ended June 30, 2015.

Revenue from homebuilding decreased by $2.9 million to $19.2 million for the six months ended June 30, 2016 as compared to $22.1 million for the six months ended June 30, 2015. Revenue from homebuilding decreased by $2.4 million to $9.7 million for the three months ended June 30, 2016 as compared to $12.1 million for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company settled 43 units (4 units at The Hampshires, 10 units at Falls Grove, 9 units at Maxwell Square, 7 units at Two Rivers, 11 units at Hallcrest, and 2 units at the Estates at Leeland), as compared to 46 units (10 units at The Hampshires, 16 units at Falls Grove, 9 units at Maxwell Square, 10 units at Shady Grove and 1 unit at Hall Road) for the six months ended June 30, 2015. For the three months ended June 30, 2016, the Company settled 21 units (1 unit at The Hampshires, 5 units at Falls Grove, 3 units at Maxwell Square, 3 units at Two Rivers, 7 units at Hallcrest, and 2 units at the Estates at Leeland), as compared to 25 units (6 units at The Hampshires, 7 units at Falls Grove, 7 units at Maxwell Square, 4 units at Shady Grove, and 1 unit at Hallcrest) for the three months ended June 30, 2015. Our homebuilding gross margin percentage for the six months ended June 30, 2016 decreased by 6% to 7%, as compared to 13% for the six months ended June 30, 2015. The decrease noted in margins was mainly a result of the number and mix of units settled and higher land and overhead costs as a percentage of homebuilding revenue in certain of our new communities that started settling during the latter part of 2015 and 2016.

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Revenue – other

Revenue – other decreased approximately $0.1 million to $0.3 million during the three months ended June 30, 2016, as compared to $0.4 million for the three months ended June 30, 2015. Revenue – other decreased approximately $0.3 million to $0.5 million during the six months ended June 30, 2016, as compared to $0.8 million during the six months ended June 30, 2015. The decrease primarily relates to revenue from our real estate services activities.

Cost of sales – homebuilding

Cost of sales – homebuilding decreased by $1.4 million to $9.2 million during the three months ended June 30, 2016, as compared to $10.6 million for the three months ended June 30, 2015. Cost of sales – homebuilding decreased by $1.4 million to $17.8 million during the six months ended June 30, 2016, as compared to $19.2 million during the six months ended June 30, 2015. The decrease noted was primarily attributable to the number of units settled and the mix of homes settled during the three and six months ended June 30, 2016.

Cost of sales – other

Cost of sales – other decreased by $0.2 million to $0.2 million during the six months ended June 30, 2016, as compared to $0.4 million during the six months ended June 30, 2015. The decrease primarily relates to our real estate services activities and is in line with the decrease in Revenue - other.

General and administrative

General and administrative expenses for the three months ended June 30, 2016 decreased by $0.5 million to $1.4 million, as compared to $1.9 million for the three months ended June 30, 2015. General and administrative expenses for the six months ended June 30, 2016 decreased by $0.9 million to $2.9 million, as compared to $3.8 million for the six months ended June 30, 2015. The decrease is attributable to attrition in employee head count and general overhead cost saving measures.

Income taxes

During the three and six months ended June 30, 2016, the Company recognized income tax expense of $32 and $57, respectively, and as of June 30, 2016 the effective tax rate is (35%). During the three months ended June 30, 2015, the Company recognized income tax expense of $57. During the six months ended June 30, 2015, the Company recorded a net income tax benefit of $13 which resulted from an out of period adjustment to reverse the valuation allowance, resulting in the recognition of a deferred tax benefit of $121, offset by income tax expense of $108, both related to the New Hampshire Avenue project in Washington, D.C. Because this error was not material to any previously filed consolidated financial statements and the impact of correcting this error in 2015 was not material, the Company recorded the correction in the first quarter of 2015. The effective tax rate for the three and six month periods ended June 30, 2015 was 3% and 1%, respectively.

Recent Developments

See the “Recent developments” section in Note 1 to the accompanying consolidated financial statements included in this Quarterly Report on Form 10-Q.

Liquidity and Capital Resources

We require capital to operate, to post deposits on new potential acquisitions, to purchase and develop land, to construct homes, to fund related carrying costs and overhead and to fund various advertising and marketing programs to generate sales. These expenditures include payroll, community engineering, entitlement, architecture, advertising, utilities and interest as well as the construction costs of our homes. Our sources of capital include, and we believe will continue to include, private equity and debt

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placements (which has included significant participation from Company insiders), funds derived from various secured and unsecured borrowings to finance acquisition, development and construction on acquired land, cash flow from operations, which includes the sale and delivery of constructed homes, finished and raw building lots and the potential sale of public debt and equity securities. The Company is involved in ongoing discussions with lenders and equity sources in an effort to provide additional growth capital to fund various new business opportunities. See Note 14 in the accompanying consolidated financial statements for more details on our credit facilities and Note 12 in the accompanying consolidated financial statements for details on private placement offerings.

We have outstanding borrowings with various financial institutions and other lenders that have been used to finance the acquisition, development and construction of real estate projects. The Company has generally financed its development and construction activities on a single or multiple project basis so it is not uncommon for each of our projects or collection of our projects to have a separate credit facility. Accordingly, the Company typically has had numerous credit facilities and lenders.

As of June 30, 2016, the Company had $12.7 million of its credit facilities and project related loans scheduled to mature during the remainder of 2016. We are in active discussions with our lenders and are seeking long term extensions and modifications to the loans. These debt instruments impose certain restrictions on our operations, including speculative unit construction limitations, curtailment obligations, and financial covenant compliance. If we fail to comply with any of these restrictions, an event of default could occur. Additionally, events of default could occur if we fail to make required debt service payments or if we fail to come to agreement on an extension on a certain facility prior to a given loan’s maturity date. Any event of default would likely render the obligations under these instruments due and payable as of that event. Any such event of default would allow certain of our lenders to exercise cross default provisions in our loan agreements with them, such that all debt with that institution could be called into default. We are anticipating that with successful resolution of the debt extension discussions with our lenders, the recently completed capital raises from our private placements, current available cash on hand, and additional cash from settlement proceeds at existing and under development communities, the Company will have sufficient financial resources to sustain its operations through the next 12 months, though no assurances can be made that the Company will be successful in its efforts. The Company will also focus on its cost structure in an effort to conserve cash and manage expenses. Such actions may include cost reductions and/or deferral arrangements with respect to current operating expenses. As stated in Note 14 to the accompanying consolidated financial statements, the Company was not in compliance with the minimum liquidity covenant requirement measure for its secured line of credit as of June 30, 2016. The Company obtained a waiver from the financial institution for not achieving the covenant requirement. On July 20, 2016, the Company extended its revolving construction, acquisition, and development loan related to the Yorkshire project with Cardinal Bank, which had an initial maturity date of July 23, 2016, to October 23, 2016. This Yorkshire credit facility had an outstanding balance of $0.2 million at June 30, 2016.

See Note 12 and Note 14 to the accompanying consolidated financial statements for details on private placement offerings and for more details on our credit facilities, respectively.

Cash Flow

Net cash provided by operating activities was $0.6 million for the six months ended June 30, 2016 compared to the net cash used in operating activities of $5.6 million for the six months ended June 30, 2015. The $0.6 million net cash provided by operations was primarily due to $3.3 million of releases of inventories associated with units settled and increases in accrued interest of $0.1 million, offset by the net loss of $2.7 million. The $5.6 million used in operating activities in 2015 was primarily attributable to the significant cash out flow for real estate inventories as the Company invested in new projects.

Net cash used in investing activities was $0.1 million and $0.4 million for the six months ended June 30, 2016 and 2015, respectively. This usage was mainly attributable to the change in compensating balances held in escrow purchase accounts as collateral for certain letters of credit, which are funded upon settlement and release of units, and the purchase of a new customer relationship management system in 2015.

Net cash used in financing activities was $9.6 million for the six months ended June 30, 2016. This was primarily attributable to the distributions of $1.9 million to the New Hampshire Avenue non-controlling interest member, the distributions of $0.8 million to the Comstock Investors VIII Class B Members, along with the pay downs on notes payable of $18.9 million, offset by borrowings of $12.1 million. Net cash provided by financing activities was $4.6 million for the six months ended June 30, 2015, primarily attributable to the $2.5 million in proceeds received by the Company from the sale of membership interests in Comstock Investors IX, L.C. and borrowings under the unsecured promissory note with Comstock Growth Fund, offset by the $1.1 million of distributions paid to non-controlling interests. See Notes 12 and 14 to the accompanying consolidated financial statements for details on private placement offerings and for more details on our credit facilities, respectively.

Seasonality

The homebuilding industry usually experiences seasonal fluctuations in quarterly operating results and capital requirements. We typically experience the highest new home order activity in the Spring and Summer, although this activity is also highly dependent on

26

the number of active selling communities, the timing of new community openings and other market factors. Because it typically takes four to six months to construct a new home, we deliver more homes in the second half of the year as Spring and Summer home orders convert to home deliveries. Because of this seasonality, home starts, construction costs and related cash outflows have historically been highest in the second and third quarters, and the majority of cash receipts from home deliveries occur during the second half of the year. We expect this seasonal pattern to continue over the long-term, although it may be affected by volatility in the homebuilding industry and the general economy.

Recently Issued Accounting Standards

See Note 1 to the accompanying consolidated financial statements included in this Quarterly Report on Form 10-Q.

Critical Accounting Policies and Estimates

There have been no significant changes to our critical accounting policies and estimates during the six months ended June 30, 2016 from those disclosed in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2015.

Off Balance Sheet Arrangements

None.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not Applicable.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We have evaluated, with the participation of our Chief Executive Officer and our Interim Chief Financial Officer, the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of June 30, 2016. Based on this evaluation, our Chief Executive Officer and Interim Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of June 30, 2016.

Limitations on the Effectiveness of Controls

We do not expect that our disclosure controls and internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, a control may become inadequate because of changes in conditions or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and may not be detected.

Changes in Internal Control

No changes have occurred in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the quarter ended June 30, 2016, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors disclosed under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2015.

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ITEM 6. EXHIBITS

3.1	Amended and Restated Certificate of Incorporation (incorporated by reference to an exhibit to the Registrant’s Quarterly Report on Form 10-Q filed with the Commission on November 16, 2015).
3.2	Amended and Restated Bylaws (incorporated by reference to an Exhibit 3.2 to the Registrant’s Annual Report on Form 10-K filed with the Commission on March 31, 2005).
3.3	Certificate of Designation of Series A Junior Participating Preferred Stock filed with the Secretary of State of the State of Delaware on March 27, 2015 (incorporated by reference to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K filed with the Commission on March 27, 2015).
3.4	Certificate of Designation of Series B Non-Convertible Preferred Stock of the Company filed with the Secretary of State of the State of Delaware on December 29, 2015 (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on January 4, 2016).
4.1	Specimen Stock Certificate (incorporated by reference to Exhibit 4.1 to the Registrant’s Registration Statement on Form S-1, as amended, initially filed with the Commission on August 13, 2004 (File No. 333-118193)).
31.1*	Certification of Chief Executive Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002
31.2*	Certification of Interim Chief Financial Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002
32.1*	Certification of Chief Executive Officer and Interim Chief Financial Officer pursuant to Section 906 of Sarbanes-Oxley Act of 2002
101*	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, formatted in eXtensible Business Reporting Language (XBRL): (i) the Consolidated Balance Sheet, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Changes in Stockholder’s Equity, (iv) the Consolidated Statements of Cash Flows and (v) the Notes to the Consolidated Financial Statements.

* Filed herewith.

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SIGNATURES

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

	COMSTOCK HOLDING COMPANIES, INC.
Date: August 15, 2016	By:	/S/    CHRISTOPHER CLEMENTE
		Christopher Clemente
		Chairman and Chief Executive Officer
		(Principal Executive Officer)
Date: August 15, 2016	By:	/S/    CHRISTOPHER L. CONOVER
		Christopher L. Conover
		Interim Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

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EX-31.1

Exhibit 31.1

CERTIFICATION OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Christopher Clemente, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Comstock Holding Companies, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 15, 2016

/s/ Christopher Clemente

Christopher Clemente

Chairman and Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF INTERIM CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Christopher L. Conover, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Comstock Holding Companies, Inc.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 15, 2016

/s/ Christopher L. Conover

Christopher L. Conover

Interim Chief Financial Officer

(Principal Financial Officer and Principal Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Comstock Holding Companies, Inc. (the “Company”) for the quarter ended June 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of Christopher Clemente, Chairman and Chief Executive Officer of the Company, and Christopher L. Conover, Interim Chief Financial Officer of the Company, certifies, to his best knowledge and belief, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 15, 2016	/s/ Christopher Clemente
	Christopher Clemente
	Chairman and Chief Executive Officer
Date: August 15, 2016	/s/ Christopher L. Conover
	Christopher L. Conover
	Interim Chief Financial Officer

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 15, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Trading Symbol	CHCI
Entity Registrant Name	Comstock Holding Companies, Inc.
Entity Central Index Key	0001299969
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		3,020,810
Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		390,500

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
ASSETS
Cash and cash equivalents	$ 3,377	$ 12,448
Restricted cash	2,763	2,566
Trade receivables	1,102	332
Real estate inventories	34,914	38,223
Fixed assets, net	291	394
Other assets, net	4,892	4,515
TOTAL ASSETS	47,339	58,478
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities	8,398	7,638
Notes payable - secured by real estate inventories	21,846	24,823
Notes payable - due to affiliates, unsecured, net of discount	15,692	19,028
Notes payable - unsecured	1,336	1,548
Income taxes payable	21
TOTAL LIABILITIES	47,293	53,037
Commitments and contingencies (Note 9)
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock $0.01 par value, 806,647 and 772,210 shares issued and liquidation preference of $4,033 and $3,861 at June 30, 2016 and December 31, 2015, respectively	1,226	1,174
Additional paid-in capital	175,982	175,963
Accumulated deficit	(179,418)	(175,785)
TOTAL COMSTOCK HOLDING COMPANIES, INC. DEFICIT	(4,838)	(1,276)
Non-controlling interests	4,884	6,717
TOTAL EQUITY	46	5,441
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	47,339	58,478
Class A [Member]
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock	30	30
Treasury stock, at cost (85,570 shares Class A common stock)	(2,662)	(2,662)
Class B [Member]
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock	$ 4	$ 4

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Preferred Stock, par value	$ 0.01	$ 0.01
Preferred Stock, liquidation value	$ 4,033	$ 3,861
Preferred Stock, shares issued	806,647	772,210
Class A [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	11,038,071	11,038,071
Common stock, shares issued	3,020,810	2,997,437
Common stock, shares outstanding	3,020,810	2,997,437
Treasury stock, shares	85,570	85,570
Class B [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	390,500	390,500
Common stock, shares issued	390,500	390,500
Common stock, shares outstanding	390,500	390,500

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Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues
Revenue-homebuilding	$ 9,699	$ 12,115	$ 19,222	$ 22,125
Revenue-other	279	449	462	756
Total revenue	9,978	12,564	19,684	22,881
Expenses
Cost of sales-homebuilding	9,185	10,594	17,830	19,184
Cost of sales-other	153	188	244	353
Sales and marketing	403	489	886	914
General and administrative	1,373	1,936	2,915	3,833
Interest and real estate tax expense	306	156	522	326
Operating loss	(1,442)	(799)	(2,713)	(1,729)
Other income, net	13	582	21	774
Loss before income tax expense	(1,429)	(217)	(2,692)	(955)
Income tax (expense) benefit	(32)	(57)	(57)	13
Net loss	(1,461)	(274)	(2,749)	(942)
Net income attributable to non-controlling interests	448	534	884	809
Net loss attributable to Comstock Holding Companies, Inc.	(1,909)	(808)	(3,633)	(1,751)
Paid-in-kind dividends on Series B Preferred Stock	86		172
Net loss attributable to common stockholders	$ (1,995)	$ (808)	$ (3,805)	$ (1,751)
Basic net loss per share	$ (0.60)	$ (0.25)	$ (1.15)	$ (0.57)
Diluted net loss per share	$ (0.60)	$ (0.25)	$ (1.15)	$ (0.57)
Basic weighted average shares outstanding	3,319	3,173	3,312	3,077
Diluted weighted average shares outstanding	3,319	3,173	3,312	3,077

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net loss	$ (2,749)	$ (942)
Adjustment to reconcile net loss to net cash provided by (used in) operating activities
Amortization of loan discount, loan commitment and deferred financing fees	633	181
Deferred income tax expense (benefit)	7	(90)
Depreciation expense	104	53
Gain on derivative		(696)
Earnings from unconsolidated joint venture, net of distributions	50	(19)
Amortization of stock compensation	41	135
Changes in operating assets and liabilities:
Restricted cash	(69)	(121)
Trade receivables	(770)	(723)
Real estate inventories	3,318	(6,152)
Other assets	(861)	470
Accrued interest	113	338
Accounts payable and accrued liabilities	789	2,036
Income taxes payable	21	(43)
Net cash provided by (used in) operating activities	627	(5,573)
Cash flows from investing activities:
Purchase of fixed assets	(1)	(136)
Payments on note receivable	17	16
Restricted cash	(128)	(252)
Net cash used in investing activities	(112)	(372)
Cash flows from financing activities:
Proceeds from notes payable	12,066	18,829
Payments on notes payable	(18,927)	(15,377)
Loan financing costs		(92)
Distributions to non-controlling interests	(2,717)	(1,100)
Contributions from non-controlling interests		2,450
Taxes paid related to net share settlement of equity awards	(8)	(32)
Repurchase of stock		(79)
Net cash (used in) provided by financing activities	(9,586)	4,599
Net decrease in cash and cash equivalents	(9,071)	(1,346)
Cash and cash equivalents, beginning of period	12,448	7,498
Cash and cash equivalents, end of period	3,377	6,152
Supplemental cash flow information:
Interest paid, net of interest capitalized	(181)	30
Income taxes paid		269
Supplemental disclosure for non-cash activity:
Increase in Class A common stock par value in connection with issuance of stock compensation		2
Increase in Class A common stock par value in connection with CGF Private Placement		16
Increase in additional paid-in capital in connection with issuance of Class A common stock under the CGF Private Placement		889
Discount on notes payable		(543)
Accrued liability settled through issuance of stock	29	$ 50
Increase in Series B preferred stock value in connection with dividends paid in-kind	$ 52

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Organization and Basis of Presentation

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Basis of Presentation

1. ORGANIZATION AND BASIS OF PRESENTATION

The accompanying unaudited financial statements of Comstock Holding Companies, Inc. and subsidiaries (“Comstock” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. Such financial statements do not include all of the information and disclosures required by GAAP for complete financial statements. In our opinion, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation have been included in the accompanying financial statements. For further information and a discussion of our significant accounting policies, other than discussed below, refer to our audited consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015.

Comstock Holding Companies, Inc., incorporated in 2004 as a Delaware corporation, is a multi-faceted real estate development and construction services company focused in the Washington, D.C. metropolitan area (Washington, D.C., Northern Virginia and Maryland suburbs of Washington, D.C.). We have substantial experience with building a diverse range of products, including multi-family homes, single-family homes, townhouses, mid-rise condominiums, high-rise multi-family condominiums and mixed-use (residential and commercial) developments. References in this Form 10-Q to “Comstock,” “Company,” “we,” “our” and “us” refer to Comstock Holding Companies, Inc. together in each case with our subsidiaries and any predecessor entities unless the context suggests otherwise.

The Company’s Class A common stock is traded on the NASDAQ Capital Market under the symbol CHCI and has no public trading history prior to December 17, 2004.

On September 25, 2015, the Company effected a 1-for-7 reverse stock split of its issued and outstanding shares of Class A common stock and Class B common stock. The Company’s Class A common stock continued trading on The Nasdaq Capital Market on a post-split basis on September 28, 2015. Throughout this quarterly report on Form 10-Q, a reference to a number of shares of the Company’s common stock, refers to the number of shares of common stock after giving effect to the Reverse Stock Split, unless otherwise indicated.

For the three and six months ended June 30, 2016 and 2015, comprehensive loss equaled net loss; therefore, a separate statement of comprehensive loss is not included in the accompanying consolidated financial statements.

Liquidity and Capital Resources

We require capital to operate, to post deposits on new potential acquisitions, to purchase and develop land, to construct homes, to fund related carrying costs and overhead and to fund various advertising and marketing programs to generate sales. These expenditures include payroll, community engineering, entitlement, architecture, advertising, utilities and interest as well as the construction costs of our homes. Our sources of capital include, and we believe will continue to include, private equity and debt placements (which has included significant participation from Company insiders), funds derived from various secured and unsecured borrowings to finance acquisition, development and construction on acquired land, cash flow from operations, which includes the sale and delivery of constructed homes, finished and raw building lots and the potential sale of public debt and equity securities. The Company is involved in ongoing discussions with lenders and equity sources in an effort to provide additional growth capital to fund various new business opportunities. See Note 14 in the accompanying consolidated financial statements for more details on our credit facilities and Note 12 in the accompanying consolidated financial statements for details on private placement offerings.

We have outstanding borrowings with various financial institutions and other lenders that have been used to finance the acquisition, development and construction of real estate projects. The Company has generally financed its development and construction activities on a single or multiple project basis so it is not uncommon for each of our projects or collection of our projects to have a separate credit facility. Accordingly, the Company typically has had numerous credit facilities and lenders.

As of June 30, 2016, the Company has $12.7 million of its credit facilities and project related loans scheduled to mature during the remainder of 2016. We are in active discussions with our lenders seeking long term extensions and modifications to the loans. These debt instruments impose certain restrictions on our operations, including speculative unit construction limitations, curtailment obligations, and financial covenant compliance. If we fail to comply with any of these restrictions, an event of default could occur. Additionally, events of default could occur if we fail to make required debt service payments or if we fail to come to agreement on an extension on a certain facility prior to a given loan’s maturity date. Any event of default would likely render the obligations under these instruments due and payable as of that event. Any such event of default would allow certain of our lenders to exercise cross default provisions in our loan agreements with them, such that all debt with that institution could be called into default. We are anticipating that with the successful resolution of the debt extension discussions with our lenders, capital raises from our recent private placements, current available cash on hand, and additional cash from settlement proceeds at existing and under development communities, the Company will have sufficient financial resources to sustain its operations through the next 12 months, though no assurances can be made that the Company will be successful in its efforts. The Company will also focus on its cost structure in an effort to conserve cash and manage expenses. Such actions may include cost reductions and/or deferral arrangements with respect to current operating expenses. On July 20, 2016, the Company extended its revolving construction, acquisition, and development loan related to the Yorkshire project with Cardinal Bank, which had an initial maturity date of July 23, 2016, to October 23, 2016. This Yorkshire credit facility had an outstanding balance of $0.2 million at June 30, 2016. See Note 17 for further discussion regarding extensions and other subsequent events impacting our credit facilities.

Recent Developments

As of June 30, 2016, the Company reported total stockholders’ equity of $46. Thus, as of June 30, 2016, the Company did not meet the minimum of $2.5 million in stockholders’ equity required for continued listing on the Nasdaq Capital Market under Listing Rule 5550(b)(1), which is one of the alternative tests for continued listing on The Nasdaq Capital Market. Additionally, as of June 30, 2016, the Company did not meet the other alternative tests of market value of listed securities or net income from continuing operations under Listing Rule 5550(b) and therefore, was no longer in compliance with the continued listing rules. As of August 15, 2016, the Company is not in receipt of any communications from The Nasdaq Stock Market LLC (“Nasdaq”) regarding its non-compliance. The Company’s deficiency has no immediate effect on the listing of the Company’s shares of Class A common stock on Nasdaq. The deficiency is primarily the result of the Company’s redemptions of non-controlling interests (included as equity in the Company’s financial statements) for the six months ended June 30, 2016 of $2,717, coupled with a net operating loss for the six months ended June 30, 2016 of $2,749.

As disclosed in Note 17 to the accompanying consolidated financial statements, on August 15, 2016, the Company, through its subsidiary, Comstock Investors X, L.C. (“Investors X”), entered into subscription agreements with certain accredited investors, pursuant to which the subscribers purchased membership interests in Investors X for an aggregate capital raise of $14,500. Proceeds from the Investors X offering are to be used to provide the equity financing for the Company’s Townes at Totten Mews project, consisting of 40 townhomes in Washington, D.C., and the Company’s The Towns at 1333 project, consisting of 18 townhomes in City of Alexandria, Virginia (the “Projects”), scheduled for acquisition, development and construction activities commencing in the coming months. With completion of the Investors X offering as of August 15, 2016, the Company has regained compliance with the minimum stockholders’ equity requirement of $2.5 million for continued listing under Listing Rule 5550(b)(1). The Company believes the actions it has undertaken have addressed the deficiencies noted above. However, there can be no assurances that the Company will maintain in compliance. If the Company is unsuccessful in its efforts to maintain compliance, a delisting of our common stock could adversely affect the market liquidity of our common stock, our ability to obtain financing and our ability to fund our operations. See additional risk factors disclosed under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2015.

Use of Estimates

Our financial statements have been prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts for the reporting periods. We base these estimates and judgments on historical experience and on various other factors that we believe to be reasonable under the circumstances. We evaluate these estimates and judgements on an ongoing basis. Actual results may differ from those estimates under different assumptions or conditions.

Recently Issued Accounting Standards

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (“ASU 2016-02”). The core principle of the standard is that a lessee should recognize the assets and liabilities that arise from leases. A lessee should recognize in its statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. ASU 2016-02 is effective for public companies for annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact this new standard will have on our consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-07, Investments – Equity Method and Joint Ventures (“ASU 2016-07”). The amendments in this ASU require, among other items, that an equity method investor add the cost of acquiring an additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting, as well as eliminates certain other existing requirements. ASU 2016-07 is effective for all companies for annual reporting periods beginning after December 15, 2016 and interim periods within those fiscal years. The adoption of this standard is not expected to have a material impact on our consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (“ASU 2016-08”). The core principle of the standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2016-08 is effective for public companies for annual reporting periods beginning after December 15, 2017, and early adoption is permitted. We are currently evaluating the impact this new standard will have on our consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (“ASU 2016-09”). The standard simplifies and clarifies certain aspects of share-based payment accounting and presentation. ASU 2016-09 is effective for public companies for annual reporting periods beginning after December 15, 2016 and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact this new standard will have on our consolidated financial statements.

We assessed other accounting pronouncements issued or effective during the six months ended June 30, 2016 and deemed they were not applicable to us and are not anticipated to have a material effect on our consolidated financial statements.

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Real Estate Inventories

6 Months Ended

Jun. 30, 2016

Real Estate [Abstract]

Real Estate Inventories

2. REAL ESTATE INVENTORIES

After impairments and write-offs, real estate held for development and sale consists of the following:

	June 30, 2016		December 31, 2015
Land and land development costs	$	18,909	$	22,896
Cost of construction (including capitalized interest and real estate taxes)		16,005		15,327
	$	34,914	$	38,223

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Warranty Reserve

6 Months Ended

Jun. 30, 2016

Guarantees [Abstract]

Warranty Reserve

3. WARRANTY RESERVE

Warranty reserves for units settled are established to cover potential costs for materials and labor with regard to warranty-type claims expected to arise during the typical one-year warranty period provided by the Company or within the two-year statutorily mandated structural warranty period for condominiums. Because the Company typically subcontracts its homebuilding work, subcontractors are required to provide the Company with an indemnity and a certificate of insurance prior to receiving payments for their work. Claims relating to workmanship and materials are generally the primary responsibility of the subcontractors and product manufacturers. The warranty reserve is established at the time of closing, and is calculated based upon historical warranty cost experience and current business factors. This reserve is an estimate and actual warranty costs could vary from these estimates. Variables used in the calculation of the reserve, as well as the adequacy of the reserve based on the number of homes still under warranty, are reviewed on a periodic basis. Warranty claims are directly charged to this reserve as they arise.

The following table is a summary of warranty reserve activity which is included in accounts payable and accrued liabilities within the consolidated balance sheets:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
Balance at beginning of period	$	314		$	362		$	312		$	492
Additions		42			50			86			92
Releases and/or charges incurred		(62	)		(118	)		(104	)		(290	)
Balance at end of period	$	294		$	294		$	294		$	294

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Capitalized Interest and Real Estate Taxes

6 Months Ended

Jun. 30, 2016

Text Block [Abstract]

Capitalized Interest and Real Estate Taxes

4. CAPITALIZED INTEREST AND REAL ESTATE TAXES

Interest and real estate taxes incurred relating to the development of lots and parcels are capitalized to real estate inventories during the active development period, which generally commences when borrowings are used to acquire real estate assets and ends when the properties are substantially complete or the property becomes inactive. A project becomes inactive when development and construction activities have been suspended indefinitely. Interest is capitalized based on the interest rate applicable to specific borrowings or the weighted average of the rates applicable to other borrowings during the period. Interest and real estate taxes capitalized to real estate inventories are expensed as a component of cost of sales as related units are sold.

The following table is a summary of interest and real estate taxes incurred and capitalized and interest and real estate taxes expensed for units settled:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Total interest incurred and capitalized	$	857	$	866	$	1,593	$	1,627
Total real estate taxes incurred and capitalized		95		121		117		189
Total interest and real estate taxes incurred and capitalized	$	952	$	987	$	1,710	$	1,816
Interest expensed as a component of cost of sales	$	414	$	376	$	706	$	756
Real estate taxes expensed as a component of cost of sales		52		54		101		92
Interest and real estate taxes expensed as a component of cost of sales	$	466	$	430	$	807	$	848

The amount of interest from entity level borrowings that we are able to capitalize in accordance with Accounting Standards Codification (“ASC”) 835, is dependent upon the average accumulated expenditures that exceed project specific borrowings. Additionally, when a project becomes inactive, its interest, real estate taxes and indirect production overhead costs are no longer capitalized but rather expensed in the period they are incurred.

The following is a breakdown of the interest and real estate taxes expensed in the consolidated statements of operations for the periods presented:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Interest incurred and expensed from entity level borrowings	$	304	$	154	$	512	$	317
Interest incurred and expensed for inactive projects		—		—		5		4
Real estate taxes incurred and expensed for inactive projects		2		2		5		5
	$	306	$	156	$	522	$	326

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Other Assets

6 Months Ended

Jun. 30, 2016

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Assets

5. OTHER ASSETS

Other assets consist of the following:

	June 30,			December 31,
	2016			2015
Restricted escrow deposits	$	—		$	37
Deferred financing cost		860			1,259
Deposits on land purchase options		1,035			760
Loan commitment		1,286			1,286
Other		3,007			2,695
		6,188			6,037
Less : accumulated amortization		(1,296	)		(1,522	)
	$	4,892		$	4,515

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Loss Per Share

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Loss Per Share

6. LOSS PER SHARE

The weighted average shares and share equivalents used to calculate basic and diluted income per share for the three and six months ended June 30, 2016 and 2015 are presented in the accompanying consolidated statements of operations. Restricted stock awards, stock options and warrants for the three and six months ended June 30, 2016 and 2015 are included in the diluted earnings per share calculation using the treasury stock method and average market prices during the periods, unless their inclusion would be anti-dilutive.

For the three and six months ended June 30, 2016, there were no anti-dilutive shares, therefore, no shares were excluded from the computation of dilutive earnings per share. As a result of the net losses from continuing operations for the three months ended June 30, 2015, approximately 36 restricted stock awards were excluded from the computation of the dilutive earnings per share because their inclusion would have been anti-dilutive. As a result of the net losses from continuing operations for the six months ended June 30, 2015, approximately 47 restricted stock awards, 59 stock options and 5 warrants, respectively, were excluded from the computation of the dilutive earnings per share because their inclusion would have been anti-dilutive.

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Segment Disclosures

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment Disclosures

7. SEGMENT DISCLOSURES

We operate our business through three segments: Homebuilding, Multi-family, and Real Estate Services. We are currently focused on the Washington, D.C. area market.

In our Homebuilding segment, we develop properties with the intent to sell as fee-simple properties or condominiums to individual buyers or to private or institutional investors. Our for-sale products are designed to attract first-time, early move-up, and secondary move-up buyers. We focus on products that we are able to offer for sale in the middle price points within the markets where we operate, avoiding the very low-end and high-end products.

In our Multi-family segment, we focus on projects ranging from approximately 75 to 200 units in locations that are supply constrained with demonstrated demand for stabilized assets. We seek opportunities in the multi-family rental market where our experience and core capabilities can be leveraged. We will either position the assets for sale when completed or operate the asset within our own portfolio. Operating the asset for our own account affords us the flexibility of converting the units to condominiums in the future.

In our Real Estate Services segment, we pursue projects in all aspects of real estate management, including strategic planning, land development, entitlement, property management, sales and marketing, workout and turnaround strategies, financing and general construction. We are able to provide a wide range of construction management and general contracting services to other property owners.

The following table includes the Company’s three reportable segments of Homebuilding, Multi-family, and Real Estate Services. Each of these segments operates within the Company’s single Washington, D.C. area reportable geographic segment.

						Real
						Estate
	Homebuilding			Multi-family		Services		Total
Three Months Ended June 30, 2016
Gross revenue	$	9,699		$	—	$	279	$	9,978
Gross profit		514			—		126		640
Net (loss) income		(1,587	)		—		126		(1,461	)
Depreciation and amortization		49			—		—		49
Interest expense		304			—		—		304
Total assets		47,134			—		205		47,339
Three Months Ended June 30, 2015
Gross revenue	$	12,115		$	—	$	449	$	12,564
Gross profit		1,521			—		261		1,782
Net (loss) income		(535	)		—		261		(274	)
Depreciation and amortization		94			—		—		94
Interest expense		154			—		—		154
Total assets		61,799			—		210		62,009
Six Months Ended June 30, 2016
Gross revenue	$	19,222		$	—	$	462	$	19,684
Gross profit		1,392			—		218		1,610
Net (loss) income		(2,967	)		—		218		(2,749	)
Depreciation and amortization		104			—		—		104
Interest expense		517			—		—		517
Total assets		47,134			—		205		47,339
Six Months Ended June 30, 2015
Gross revenue	$	22,125		$	—	$	756	$	22,881
Gross profit		2,941			—		403		3,344
Net (loss) income		(1,345	)		—		403		(942	)
Depreciation and amortization		205			—		—		205
Interest expense		321			—		—		321
Total assets		61,799			—		210		62,009

The Company allocates sales, marketing and general and administrative expenses to the individual segments based upon specifically allocable costs.

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Income Tax

6 Months Ended

Jun. 30, 2016

Income Tax Disclosure [Abstract]

Income Tax

8. INCOME TAX

During the three and six months ended June 30, 2016, the Company recognized income tax expense of $32 and $57, respectively, and as of June 30, 2016 the effective tax rate is (35%). During the three months ended June 30, 2015, the Company recognized income tax expense of $57. During the six months ended June 30, 2015, the Company recorded a net income tax benefit of $13 which resulted from an out of period adjustment to reverse the valuation allowance, resulting in the recognition of a deferred tax benefit of $121, offset by income tax expense of $108, both related to the New Hampshire Avenue project in Washington, D.C. Because this error was not material to any previously filed consolidated financial statements and the impact of correcting this error in 2015 was not material, the Company recorded the correction in the first quarter of 2015. The effective tax rate for the three and six month periods ended June 30, 2015 was 3% and 1%, respectively.

The Company has not recorded any accruals related to uncertain tax positions as of June 30, 2016 and 2015. We file U.S. and state income tax returns in jurisdictions with varying statutes of limitations. The 2012 through 2015 tax years remain subject to examination by federal and most state tax authorities.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

9. COMMITMENTS AND CONTINGENCIES

Litigation

Currently, we are not subject to any material legal proceedings. From time to time, however, we are named as a defendant in legal actions arising from our normal business activities. Although we cannot accurately predict the amount of our liability, if any, that could arise with respect to legal actions pending against us; we do not expect that any such liability will have a material adverse effect on our financial position, operating results and cash flows. We believe that we have obtained adequate insurance coverage, rights to indemnification, or where appropriate, have established appropriate reserves in connection with any such legal proceedings.

Letters of credit, performance bonds and compensating balances

The Company has commitments as a result of contracts with certain third parties, primarily local governmental authorities, to meet certain performance criteria outlined in such contracts. The Company is required to issue letters of credit and performance bonds to these third parties as a way of ensuring that the commitments entered into are met. These letters of credit and performance bonds issued in favor of the Company and/or its subsidiaries mature on a revolving basis, and if called into default, would be deemed material if assessed against the Company and/or its subsidiaries for the full amounts claimed. In some circumstances, we have negotiated with our lenders in connection with foreclosure agreements for the lender to assume certain liabilities with respect to the letters of credit and performance bonds. We cannot accurately predict the amount of any liability that could be imposed upon the Company with respect to maturing or defaulted letters of credit or performance bonds. At June 30, 2016 and 2015, the Company had $1.9 million and $3.7 million in letters of credit, respectively. At June 30, 2016 and 2015, the Company had $4.3 million and $6.0 million in outstanding performance and payment bonds, respectively. No amounts have been drawn against the outstanding letters of credit or performance bonds.

We are required to maintain compensating balances in escrow accounts as collateral for certain letters of credit, which are funded upon settlement and release of units. The cash contained within these escrow accounts is subject to withdrawal and usage restrictions. As of June 30, 2016 and December 31, 2015, we had approximately $1.1 million and $1.0 million, respectively, in these escrow accounts, which are included in ‘Restricted cash’ in the accompanying consolidated balance sheets.

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Related Party Transactions

6 Months Ended

Jun. 30, 2016

Related Party Transactions [Abstract]

Related Party Transactions

10. RELATED PARTY TRANSACTIONS

The Company leases its corporate headquarters from an affiliated entity that is wholly-owned by our Chief Executive Officer. Future minimum lease payments under this lease are as follows:

2016	$	167
2017		167
Total	$	334

For the three months ended June 30, 2016 and 2015, total payments made under this lease agreement were $81 and $79, respectively. For the six months ended June 30, 2016 and 2015, total payments made under this lease agreement were $162 and $158, respectively. As of June 30, 2016 and December 31, 2015, the Company recorded a straight–line rent payable of $19 and $24, respectively, which is included in ‘Accounts payable and accrued liabilities’ in the accompanying consolidated balance sheets.

On February 23, 2009, Comstock Homes of Washington, L.C., a wholly-owned subsidiary of the Company, entered into a Services Agreement with Comstock Asset Management, L.C., an entity wholly-owned by our Chief Executive Officer, to provide services related to real estate development and improvements, including legal, accounting, marketing, information technology and other additional support services. For the three months ended June 30, 2016 and 2015, the Company billed Comstock Asset Management, L.C. $279 and $220, respectively, for services and out-of-pocket expenses. For the six months ended June 30, 2016 and 2015, Comstock Asset Management, L.C. was billed $462 and $373, respectively, for services and out-of-pocket expenses incurred. Revenues from this arrangement are included within ‘Revenue – other’ in the accompanying consolidated statements of operations. As of June 30, 2016 and December 31, 2015, the Company was owed $203 and $81, respectively, under this contract, which is included in ‘Trade receivables’ in the accompanying consolidated balance sheets.

On October 17, 2014, Comstock Growth Fund (“CGF”), an administrative entity managed by the Company, entered into a subscription agreement with Comstock Development Services, LC (“CDS”), an entity wholly-owned by our Chief Executive Officer, pursuant to which CDS purchased membership interests in CGF for a principal amount of $10 million. Other purchasers who purchased interest in the private placement included members of the Company’s management and board of directors and other third-party, accredited investors for an additional principal amount of $6.2 million (the “CGF Private Placement”).

Simultaneously, on October 17, 2014, the Company entered into an unsecured promissory note with CGF whereby CGF made a loan to the Company in the initial principal amount of $10 million and a maximum capacity of up to $20 million. On December 18, 2014, the loan agreement was amended and restated to provide for a maximum capacity of $25 million. All of the other terms of the unsecured promissory note remained the same. The Company borrowed an additional principal loan amount of $6.2 million under the amended and restated CGF promissory note bringing the total aggregate principal amount borrowed to $16.2 million. The CGF loan has a three year term carrying a floating interest rate of LIBOR plus 9.75% with a 10% floor. The loan requires an annual principal repayment in the amount of 10% of the average outstanding balance and a monthly interest payment that will be made in arrears. Purchasers other than CDS who purchased membership interests in CGF received warrants that represent the right to purchase an amount of shares of our Class A common stock, depending upon the investment amount. As of June 30, 2016 and December 31, 2015, we had 76 warrants outstanding, representing the right to purchase shares of our Class A common stock having an aggregate fair value of $433, which was considered as a debt discount. The Company amortizes the debt discount over the three year term of the loan to interest expense. As of June 30, 2016, $12.6 million was outstanding in principal and accrued interest, net of discounts. For the three months ended June 30, 2016 and 2015, the Company made interest payments of $0.4 million on the CGF loan. For the six months ended June 30, 2016 and 2015, the Company made interest payments of $0.8 million on the CGF loan. During the three months ended June 30, 2016, the Company made the first principal curtailment to CGF in the amount of $1.6 million.

On December 18, 2014, CGF entered into amended and restated subscription agreements with CDS, members of the Company’s management and board of directors and the other third party accredited investors who participated in the CGF Private Placement (the “Amended CGF Private Placement”). Under the Amended CGF Private Placement, in addition to the warrants described above, the Company entered into a commitment to grant 226,857 shares of our Class A common stock to the purchasers in the Amended CGF Private Placement. On May 12, 2015, the Company issued 226,857 un-registered shares of its Class A common stock to the purchasers in the Amended CGF Private Placement. The Amended CGF Private Placement was closed for additional investments on May 15, 2015.

On December 29, 2015, the Company and Stonehenge Funding, L.C. (“Stonehenge”), an entity wholly owned by our Chief Executive Officer, entered into a Note Exchange and Subscription Agreement pursuant to which the note in the original principal amount of $4,500 issued to the Company by Stonehenge was exchanged for 772,210 shares of the Company’s Series B Non-Convertible Preferred Stock, par value $0.01 per share and a stated value of $5.00 per share (the “Series B Preferred Stock”). The number of shares of Series B Preferred Stock received by Stonehenge in exchange for the note represented the principal amount outstanding plus accrued interest under the note as of December 29, 2015, which was $3,861. The note was cancelled in its entirety on December 29, 2015. The holders of Series B Preferred Stock earn dividends at a rate of 8.75% per annum accruing from the effective date of the Note Exchange and Subscription Agreement. The dividends accrue whether or not declared. The dividends are also cumulative and payable quarterly in arrears at the last day of each quarterly reporting period in the form of additional Series B Preferred Stock (PIK) or in the sole discretion of the board of directors, in cash. For the three and six months ended June 30, 2016, 17,221 and 34,437 shares of the Series B Preferred Stock, respectively, with a liquidation value of $86 and $172, respectively, were paid in-kind, and are included in ‘Stockholders’ equity’ in the accompanying consolidated balance sheets.

On December 29, 2015, Comstock Growth Fund II, L.C. (“CGF II”), an administrative entity managed by the Company was created for the purpose of extending loans to the Company. CGF II entered into a subscription agreement with CDS pursuant to which CDS purchased membership interests in CGF II for an initial aggregate principal amount of $5.0 million (the “CGF II Private Placement”).

Simultaneously, on December 29, 2015, the Company and CGF II entered into an unsecured revolving line of credit promissory note in the initial principal amount of $5.0 million and a maximum amount available for borrowing of up to $10.0 million with a two year term, which may be extended an additional year upon payment of a $10 extension fee. The interest rate is 10% per annum, and interest payments will be accrued and paid in-kind monthly for the first year, and then paid current monthly in arrears beginning December 31, 2016. The Company pays an origination fee of 1% on the amount of the advance, up to an aggregate amount of $100, and a maintenance fee of 0.25% of the average outstanding balance of the loan on a quarterly basis. As of June 30, 2016 and December 31, 2015, $3.1 million and $5.0 million, respectively, was outstanding in principal and accrued interest. See Note 14 to the consolidated financial statements for further discussion of transactions entered with CGF II.

See Note 12 to the consolidated financial statements for a description of the Comstock VII and Comstock VIII Private Placements, which included certain of our officers and directors, and Note 14 to the consolidated financial statements for a description of the CGF Private Placement and the CGF II Private Placement.

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Note Receivable

6 Months Ended

Jun. 30, 2016

Receivables [Abstract]

Note Receivable

11. NOTE RECEIVABLE

The Company originated a note receivable to a third party in the amount of $180 in September 2014. This note has a maturity date of September 2, 2019 and is payable in monthly installments of principal and interest of $3. This note bears a fixed interest rate of 6% per annum. As of June 30, 2016 and December 31, 2015, the outstanding balance of the note was $124 and $141, respectively, and is included within ‘Other assets’ in the accompanying consolidated balance sheets. The interest income of $2 for the three months ended June 30, 2016 and 2015, is included in ‘Other income, net’ in the consolidated statements of operations. The interest income of $4 and $5 for the six months ended June 30, 2016 and 2015, respectively, is included in ‘Other income, net’ in the consolidated statements of operations.

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Variable Interest Entity

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entity

12. VARIABLE INTEREST ENTITY

Included within the Company’s real estate inventories at June 30, 2016 and December 31, 2015 are several projects that are determined to be a variable interest entity (“VIE”). These entities have been established to own and operate real estate property and were deemed VIEs primarily based on the fact that the equity investment at risk is not sufficient to permit the entities to finance their activities without additional financial support. The Company determined that it was the primary beneficiary of these VIEs as a result of its majority voting and complete operational control of the entities.

On August 23, 2012, the Company formed New Hampshire Ave. Ventures, LLC, a joint venture of its subsidiary, Comstock Ventures XVI, L.C., and 6000 New Hampshire Avenue, LLC, for the purpose of acquiring, developing and constructing a 111-unit project (the “NHA Project”) in Washington, D.C. The Company evaluated the joint venture and determined that the equity investment at risk is not sufficient to permit the entity to finance its activities without additional financial support. The Company determined that it was the primary beneficiary of the VIE as a result of its complete operational control of the activities that most significantly impact the economic performance and obligation to absorb losses, or receive benefits. The Company contributed its ownership interest in Comstock Ventures XVI, L.C. to Comstock Investors VII, L.C. (“Comstock VII”) on March 13, 2013. During the six months ended June 30, 2016 and 2015, New Hampshire Ave. Ventures, LLC distributed $1.9 million and $1.1 million, respectively, to its non-controlling interest member, 6000 New Hampshire Avenue, LLC.

On September 27, 2012, the Company formed Comstock Eastgate, L.C., a joint venture of the Company and BridgeCom Development II, LLC, for the purpose of acquiring, developing and constructing 66 condominium units in Loudoun County, Virginia. The Company evaluated the joint venture and determined that the equity investment at risk is not sufficient to permit the entity to finance its activities without additional financial support. The Company determined that it was the primary beneficiary as a result of its complete operational control of the activities that most significantly impact the economic performance and obligation to absorb losses, or receive benefits. During the six months ended June 30, 2016 and 2015, no distributions were made to the non-controlling interest member, BridgeCom Development II, LLC. The Company exited the Eastgate project in the second quarter of 2014 after closing on all 66 units.

In March 2013, Comstock Investors VII entered into subscription agreements with certain accredited investors (“Comstock VII Class B Members”) pursuant to which the Comstock VII Class B Members purchased membership interests in Comstock VII for an aggregate amount of $7.3 million (the “Comstock VII Private Placement”). The proceeds from the Comstock VII Private Placement were used for the construction of the Company’s following projects: Townes at Shady Grove Metro in Rockville, Maryland consisting of 36 townhomes, Momentum | Shady Grove consisting of 117 condominium units, City Homes at the Hampshires in Washington, D.C. consisting of 38 single family residences, Townes at the Hampshires in Washington, D.C. consisting of 73 townhomes, Single Family Homes at the Falls Grove project in Prince William County, Virginia consisting of 19 single family homes and Townes at the Falls Grove project in Prince William County consisting of 110 townhomes (collectively, the “Investor VII Projects”). In connection with the Comstock VII Private Placement, the Company issued 17 warrants for the purchase of shares of the Company’s Class A common stock to the non-affiliated accredited investors, having an aggregate fair value of $146. In October 2014, the Company fully redeemed the equity interest of the Comstock VII Class B Members.

In December 2013, Comstock Investors VIII, L.C. (“Comstock VIII”) entered into subscription agreements with certain accredited investors (“Comstock VIII Class B Members”), pursuant to which Comstock VIII Class B Members purchased membership interests in Comstock VIII for an aggregate amount of $4.0 million (the “Comstock VIII Private Placement”). In connection with the Comstock VIII Private Placement, the Company issued 15 warrants for the purchase of shares of the Company’s Class A common stock to the non-affiliated accredited investors, having an aggregate fair value of $131. Comstock VIII Class B Members included unrelated third-party accredited investors along with members of the Company’s board of directors and the Company’s former Chief Financial Officer and the Company’s former Chief Operating Officer. The Comstock VIII Class B Members are entitled to a cumulative, preferred return of 20% per annum, compounded annually on their capital account balances. The Company has the right to repurchase the interests of the Comstock VIII Class B Members at any time, provided that (i) all of the Comstock VIII Class B Members’ interests are acquired, (ii) the purchase is made in cash and (iii) the purchase price equals the Comstock VIII Class B Members’ capital accounts plus an amount necessary to cause the preferred return to equal a cumulative cash on cash return equal to 20% per annum. The proceeds from the Comstock VIII Private Placement are being used for the current and planned construction of the following projects: The Townes at HallCrest in Sterling, Virginia consisting of 42 townhome units and Townes at Maxwell Square Condominium in Frederick, Maryland consisting of 45 townhome condominium units (collectively, the “Investor VIII Projects”). Proceeds of the Comstock VIII Private Placement are being utilized (A) to provide capital needed to complete the Investor VIII Projects in conjunction with project financing for the Investor VIII Projects, (B) to reimburse the Company for prior expenditures incurred on behalf of the Investor VIII Projects, and (C) for general corporate purposes of the Company. The Company evaluated Comstock VIII and determined that the equity investment at risk is not sufficient to permit the entity to finance its activities without additional financial support and the Company was the primary beneficiary as a result of its complete operational control of the activities that most significantly impact the economic performance and its obligation to absorb losses, or receive benefits. Accordingly, the Company consolidates this entity. During the six months ended June 30, 2016, the Company paid distributions in the amount of $0.8 million, to its non-controlling interest member, Comstock VIII Class B Members. No distributions were paid to the Comstock VIII Class B Members during the six months ended June 30, 2015.

In June 2015, Comstock Investors IX, L.C. (“Comstock IX”) entered into subscription agreements with third-party accredited investors (“Comstock IX Class B Members”), pursuant to which Comstock IX Class B Members purchased membership interests in Comstock IX for an aggregate amount of $2.5 million (the “Comstock IX Private Placement”). The Comstock IX Class B Members are entitled to a cumulative, preferred return of 20% per annum, compounded annually on their capital account balances. The Company has the right to repurchase the interests of the Comstock IX Class B Members at any time, provided that (i) all of the Comstock IX Class B Members’ interests are acquired, (ii) the purchase is made in cash and (iii) the purchase price equals the Comstock IX Class B Members’ capital accounts plus any amount necessary to cause the preferred return to equal a cumulative cash on cash return equal to 20% per annum. The proceeds from the Comstock IX Private Placement are being utilized (A) for the current and planned construction of the Stone Ridge project of 35 single family homes in Loudoun County Virginia; (B) to reimburse the Company for prior expenditures incurred on behalf of the Stone Ridge project; and (C) for general corporate purposes of the Company. The Company evaluated Comstock IX and determined that the equity investment at risk is not sufficient to permit the entity to finance its activities without additional financial support and the Company was the primary beneficiary as a result of its complete operational control of the activities that most significantly impact the economic performance and its obligation to absorb losses or receive benefits. Accordingly, the Company consolidates this entity. No distributions have been paid to the Comstock IX Class B Members through June 30, 2016.

The distributions to and contributions from the VIEs discussed above are included within the ‘non-controlling interest’ in the consolidated balance sheets for the periods presented.

At June 30, 2016 and December 31, 2015, total assets of these VIEs were approximately $18.6 million and $22.7 million, respectively, and total liabilities were approximately $11.8 million and $13.0 million, respectively. The classification of these assets is primarily within ‘Real estate inventories’ and the classification of liabilities are primarily within ‘Accounts payable and accrued liabilities’ and ‘Notes payable – secured by real estate inventories’ in the accompanying consolidated balance sheets.

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Unconsolidated Joint Venture

6 Months Ended

Jun. 30, 2016

Equity Method Investments and Joint Ventures [Abstract]

Unconsolidated Joint Venture

13. UNCONSOLIDATED JOINT VENTURE

The Company accounts for its interest in its title insurance joint venture using the equity method of accounting and periodically adjusts the carrying value for its proportionate share of earnings, losses and distributions. The carrying value of the investment is included within ‘Other assets’ in the accompanying consolidated balance sheets and our proportionate share of the earnings from the investment are included in ‘Other income, net’ in the accompanying consolidated statements of operations for the periods presented. Our share of the earnings for the three and six months ended June 30, 2016 are $8 and $16, respectively. During the three and six months ended June 30, 2015, our share of the earnings from this joint venture was $35 and $54, respectively. During the six months ended June 30, 2016 and 2015, the Company collected total distributions of $66 and $35, respectively, as a return on investment.

Summarized financial information for the unconsolidated joint venture is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Statement of Operations:
Total net revenue	$	45	$	98	$	90	$	172
Total expenses		29		28		58		65
Net income	$	16	$	70	$	32	$	107
Comstock Holding Companies, Inc. share of net income	$	8	$	35	$	16	$	54

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Credit Facilities

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Credit Facilities

14. CREDIT FACILITIES

Notes payable consisted of the following:

	June 30, 2016		December 31, 2015
Construction revolvers	$	6,039	$	5,832
Development and acquisition notes		10,827		13,833
Mezzanine notes		1,400		1,367
Line of credit		3,580		3,791
Total secured notes		21,846		24,823
Unsecured financing		1,336		1,548
Notes payable, unsecured, net of $2.3 million discount		15,692		19,028
Total notes payable	$	38,874	$	45,399

As of June 30, 2016, maturities and/or curtailment obligations of all borrowings are as follows:

2016	$	12,707
2017		23,880
2018		2,287
Total	$	38,874

As of June 30, 2016, the Company had $12.7 million of its credit facilities and project related loans scheduled to mature during the remainder of 2016. We are in active discussions with our lenders seeking long-term extensions with respect to our loans and credit facilities maturing in 2016. The current performance of the projects and our early discussions with our lenders indicates that we will likely be successful in extending or modifying these loans, though no assurances can be made that we will be successful in these efforts. See Note 17 for further discussion regarding extensions and other subsequent events impacting our credit facilities.

Construction, development and mezzanine debt – secured

The Company enters into secured acquisition and development loan agreements from time to time to purchase and develop land parcels. In addition, the Company enters into secured construction loan agreements for the construction of its real estate inventories. The loans are repaid with proceeds from home closings based upon a specific release price, as defined in each respective loan agreement.

As of June 30, 2016 and December 31, 2015, the Company had secured construction revolving credit facilities with a maximum loan commitment of $39.6 million and $40.5 million, respectively. The Company may borrow under these facilities to fund its home building activities. The amount the Company may borrow is subject to applicable borrowing base provisions and the number of units under construction, which may also limit the amount available or outstanding under the facilities. The facilities are secured by deeds of trust on the real property and improvements thereon, and the borrowings are repaid with the net proceeds from the closings of homes sold, subject to a minimum release price. As of June 30, 2016 and December 31, 2015, the Company had approximately $33.6 million and $34.7 million, respectively, of unused construction loan commitments. The Company had $6.0 million and $5.8 million of outstanding construction borrowings as of June 30, 2016 and December 31, 2015, respectively. Interest rates charged under these facilities include the London Interbank Offered Rate (“LIBOR”) and prime rate pricing options, subject to minimum interest rate floors. At June 30, 2016 and December 31, 2015, the weighted average interest rate on the Company’s outstanding construction revolving facilities was 4.7% and 4.8% per annum, respectively. The construction credit facilities have maturity dates ranging from September 2016 to March 2018, including extensions subject to the Company meeting certain conditions.

As of June 30, 2016 and December 31, 2015, the Company had approximately $37.8 million of aggregate acquisition and development maximum loan commitments of which $10.8 million and $13.8 million, respectively, were outstanding. These loans have maturity dates ranging from July 2016 to March 2018, including extensions subject to certain conditions, and bear interest at a rate based on LIBOR and prime rate pricing options, with interest rate floors ranging from 4.25% to 5.5% per annum. As of June 30, 2016 and December 31, 2015, the weighted average interest rate was 4.7% per annum.

As of June 30, 2016, the Company had one mezzanine loan that is being used to finance the development of the Momentum | Shady Grove project. The maximum principal commitment amount of this loan was $1.1 million, of which $1.2 million and $1.1 million of principal and accrued interest was outstanding at June 30, 2016 and December 31, 2015, respectively. This financing carries an annual interest rate of 12% of which 6% is paid on a monthly basis with the remaining 6% being accrued and paid at maturity. This financing has a maturity date of December 31, 2016 and is guaranteed by the Company and our Chief Executive Officer.

Line of credit – secured

At June 30, 2016 and December 31, 2015, the Company had a secured revolving line of credit with a maximum capacity of $4.0 million, of which $3.6 million and $3.8 million was outstanding at June 30, 2016 and December 31, 2015, respectively. This line of credit is secured by the first priority security interest in the Company’s wholly owned subsidiaries’ in the Washington, D.C. metropolitan area and guaranteed by our Chief Executive Officer. The Company uses this line of credit to finance the predevelopment related expenses and deposits for current and future projects and bears a variable interest rate tied to a one-month LIBOR plus 3.25% per annum, with an interest rate floor of 5.0%. This line of credit calls for the Company to adhere to financial covenants, as defined in the loan agreement such as, minimum net worth and minimum liquidity, measured quarterly and minimum EBITDA measured on an annual basis and matures on December 31, 2016. The Company obtained a waiver from the financial institution for not meeting the minimum liquidity measure as of June 30, 2016, but was in compliance with the minimum net worth requirement as dictated by the line of credit agreement as of June 30, 2016.

Unsecured note

As of June 30, 2016 and December 31, 2015, the Company had $1.3 million and $1.5 million, respectively, in outstanding balances under a 10-year unsecured note with a bank. Interest is charged on this financing on an annual basis at the Overnight LIBOR rate plus 2.2%. At June 30, 2016 and December 31, 2015, the interest rate was 2.6% and 2.5% per annum, respectively. The maturity date of this financing is December 28, 2018. The Company is required to make monthly principal and interest payments through maturity.

Notes payable to affiliate – unsecured

Comstock Growth Fund

On October 17, 2014, CGF entered into a subscription agreement with CDS, pursuant to which CDS purchased membership interests in CGF for a principal amount of $10.0 million (the “CGF Private Placement”). Other investors who subsequently purchased interest in the CGF Private Placement included members of the Company’s management and board of directors and other third party accredited investors for an additional principal amount of $6.2 million.

On October 17, 2014, the Company entered into an unsecured promissory note with CGF whereby CGF made a loan to the Company in the initial principal amount of $10.0 million and a maximum amount available for borrowing of up to $20.0 million with a three year term (the “Original Promissory Note”). On December 18, 2014, the loan agreement was amended and restated to provide for a maximum capacity of $25 million. The loan bears interest at a floating rate based on the 30 day LIBOR plus 9.75% per annum with a 10% floor per annum. Interest payments will be made monthly in arrears. There is a principal curtailment requirement of 10% annually based on the average outstanding balance for the prior year. The loan will be used by the Company (i) to finance the Company’s current and future development pipeline, (ii) to repay all or a portion of the Company’s prior private placements; (iii) to repay all or a portion of the Company’s project mezzanine loans, and (iv) for general corporate purposes. The Company is the administrative manager of CGF but does not own any membership interests. The Company had approximately $12.6 million and $14.1 million of outstanding borrowings, net of discounts, as of June 30, 2016 and December 31, 2015, respectively. As of June 30, 2016 and December 31, 2015, the interest rate was 11.1% and 10.0% per annum, respectively. For the three months ended June 30, 2016 and 2015, the Company made interest payments of $0.4 million. For the six months ended June 30, 2016 and 2015, the Company made interest payments of $0.8 million. During the three months ended June 30, 2016, the Company made the first principal curtailment to CGF in the amount of $1.6 million.

Comstock Growth Fund II

On December 29, 2015, the Company entered into a revolving line of credit promissory note with CGF II whereby CGF II made a loan to the Company in the initial principal amount of $5.0 million and a maximum amount available for borrowing of up to $10.0 million with a two year term, which may be extended an additional year upon payment of a $10 extension fee. The interest rate is 10% per annum, and interest payments will be accrued and paid in kind monthly for the first year, and then paid current monthly in arrears beginning December 31, 2016. The Company pays an origination fee of 1% on the amount of the advance, up to an aggregate amount of $100, and a maintenance fee of 0.25% of the average outstanding balance of the loan on a quarterly basis. The capital provided to the Company by the loan will be used by the Company (i) to capitalize the Company’s current and future development pipeline, (ii) to repay all or a portion of the Company’s prior private placements, and (iii) for general corporate purposes. As of June 30, 2016 and December 31, 2015, $3.1 million and $5.0 million, respectively, was outstanding in principal and accrued interest. On January 8, 2016, the Company paid off the $5.0 million line of credit outstanding from CGF II at December 31, 2015 and concurrently, CDS redeemed all of its equity interest in CGF II.

On March 30, 2016, CDS repurchased a membership interest in CGF II for a principal amount of $3.0 million. Simultaneously, the Company received an advance of $3.0 million on its line of credit promissory note from CGF II.

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Fair Value Disclosures

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Disclosures

15. FAIR VALUE DISCLOSURES

The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities are reasonable estimates of their fair values based on their short maturities. The fair value of fixed and floating rate debt is based on unobservable market rates (Level 3 inputs).

The fair value of the floating rate debt was estimated using a discounted cash flow analysis on the blended borrower rates currently available to the Company for loans with similar terms. The following table summarizes the carrying amount and the corresponding fair value of fixed and floating rate debt:

	June 30, 2016		December 31, 2015
Carrying amount	$	38,874	$	45,399
Fair value	$	39,318	$	45,166

Fair value estimates are made at a specific point in time, based on relevant market information about the financial instruments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

The Company may also value its non-financial assets and liabilities, including items such as real estate inventories and long lived assets, at fair value on a non-recurring basis if it is determined that impairment has occurred. Such fair value measurements use significant unobservable inputs and are classified as Level 3.

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Restricted Stock, Stock Options and Other Stock Plans

6 Months Ended

Jun. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Restricted Stock, Stock Options and Other Stock Plans

16. RESTRICTED STOCK, STOCK OPTIONS AND OTHER STOCK PLANS

During the three and six months ended June 30, 2016 and 2015, the Company did not issue any stock options or restricted stock awards.

Stock-based compensation cost associated with restricted stock and stock options was recognized based on the fair value of the instruments over the instruments’ vesting period. The following table reflects the consolidated balance sheets and statements of operations line items for stock-based compensation cost for the periods presented:

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Real estate inventories - Assets	$	4	$	8	$	9	$	17
General and administrative - Expenses		15		59		41		135
	$	19	$	67	$	50	$	152

Under net settlement procedures currently applicable to our outstanding restricted stock awards for employees, upon each settlement date and election by the employees, restricted stock awards are withheld to cover the required withholding tax, which is based on the value of the restricted stock award on the settlement date as determined by the closing price of our Class A common stock on the trading day immediately preceding the applicable settlement date. The remaining amounts are delivered to the recipient as shares of our Class A common stock.

As of June 30, 2016, the weighted-average remaining contractual term of unexercised stock options was 5 years. As of June 30, 2016 and December 31, 2015, there was $0.1 million of unrecognized compensation cost related to stock grants.

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Subsequent Events

6 Months Ended

Jun. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

17. SUBSEQUENT EVENTS

On July 20, 2016, the Company extended its revolving construction, acquisition, and development loans related to the Yorkshire project with Cardinal Bank. This loan had an initial maturity date of July 23, 2016 and the extension provides for a maturity date of October 23, 2016. As of June 30, 2016, we had $0.2 million in outstanding borrowings under this revolving credit facility.

During the fourth quarter of 2015, the Company wrote off $1.4 million of land purchase deposit paid to one of its communities in the Washington D.C. metropolitan area due to changes made to the scheduled lot take down strategy. In February 2016, two subsidiaries of the Company and a land seller filed claims and counterclaims against each other regarding land contract disputes. On July 29, 2016, the subsidiaries and the land seller entered into a settlement agreement whereby the Seller agreed to refund a portion of the deposit, $0.7 million, paid by Comstock and the land seller agreed to re-purchase 4 lots from Comstock. In consideration of the payments, the subsidiaries agreed to release Indemnity Deeds of Trust against the land seller’s other property and dismiss the litigation.

On August 15, 2016, Comstock Investors X, L.C. (“Investors X”), a subsidiary of the Company, entered into subscription agreements with certain accredited investors (the “Investors X Member(s)”), pursuant to which the Investors X Members purchased membership interests in Investors X for an aggregate capital raise of $14,500 (the “Investors X Private Placement”). The Investors X Members include an entity wholly owned by Christopher Clemente, the Chief Executive Officer of the Company. Upon closing the Investors X Private Placement, the Company issued warrants to purchase shares of the Company’s Class A Common Stock to the Investors X Members. The terms of the Investors X Private Placement provide that the warrants are to be ratably shared for each Investor X Member subscribing to a minimum, or exceeding, an initial investment amount of $1,000. The Warrants represent the right to purchase an aggregate amount of up to 100 shares of Class A Common Stock.

On August 15, 2016, Comstock Investors X, L.C. received $2,500 of the subscription proceeds from the Investors X Members. The subscription agreement for the Investors X Private Placement provides that the Comstock Investors X Members are entitled to a cumulative, compounded, preferred return on their capital account balances. The Company has the right to repurchase the interests of the Investors X Members, provided that (i) all of the Investor X Members’ interests are acquired, (ii) the purchase is made in cash and (iii) the purchase price equals the Investor X Members’ capital account plus accrued preferred return. Proceeds of the Investors X Private Placement are to be utilized (i) to provide acquisition and development capital needed to complete the Projects in conjunction with obtaining construction financing for the Projects, (ii) to reimburse the Company for prior expenditures incurred on behalf of the Projects, and (iii) for general corporate purposes of the Company.

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Organization and Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Liquidity and Capital Resources

Liquidity and Capital Resources

We require capital to operate, to post deposits on new potential acquisitions, to purchase and develop land, to construct homes, to fund related carrying costs and overhead and to fund various advertising and marketing programs to generate sales. These expenditures include payroll, community engineering, entitlement, architecture, advertising, utilities and interest as well as the construction costs of our homes. Our sources of capital include, and we believe will continue to include, private equity and debt placements (which has included significant participation from Company insiders), funds derived from various secured and unsecured borrowings to finance acquisition, development and construction on acquired land, cash flow from operations, which includes the sale and delivery of constructed homes, finished and raw building lots and the potential sale of public debt and equity securities. The Company is involved in ongoing discussions with lenders and equity sources in an effort to provide additional growth capital to fund various new business opportunities. See Note 14 in the accompanying consolidated financial statements for more details on our credit facilities and Note 12 in the accompanying consolidated financial statements for details on private placement offerings.

We have outstanding borrowings with various financial institutions and other lenders that have been used to finance the acquisition, development and construction of real estate projects. The Company has generally financed its development and construction activities on a single or multiple project basis so it is not uncommon for each of our projects or collection of our projects to have a separate credit facility. Accordingly, the Company typically has had numerous credit facilities and lenders.

As of June 30, 2016, the Company has $12.7 million of its credit facilities and project related loans scheduled to mature during the remainder of 2016. We are in active discussions with our lenders seeking long term extensions and modifications to the loans. These debt instruments impose certain restrictions on our operations, including speculative unit construction limitations, curtailment obligations, and financial covenant compliance. If we fail to comply with any of these restrictions, an event of default could occur. Additionally, events of default could occur if we fail to make required debt service payments or if we fail to come to agreement on an extension on a certain facility prior to a given loan’s maturity date. Any event of default would likely render the obligations under these instruments due and payable as of that event. Any such event of default would allow certain of our lenders to exercise cross default provisions in our loan agreements with them, such that all debt with that institution could be called into default. We are anticipating that with the successful resolution of the debt extension discussions with our lenders, capital raises from our recent private placements, current available cash on hand, and additional cash from settlement proceeds at existing and under development communities, the Company will have sufficient financial resources to sustain its operations through the next 12 months, though no assurances can be made that the Company will be successful in its efforts. The Company will also focus on its cost structure in an effort to conserve cash and manage expenses. Such actions may include cost reductions and/or deferral arrangements with respect to current operating expenses. On July 20, 2016, the Company extended its revolving construction, acquisition, and development loan related to the Yorkshire project with Cardinal Bank, which had an initial maturity date of July 23, 2016, to October 23, 2016. This Yorkshire credit facility had an outstanding balance of $0.2 million at June 30, 2016. See Note 17 for further discussion regarding extensions and other subsequent events impacting our credit facilities.

Recent Developments

Recent Developments

As of June 30, 2016, the Company reported total stockholders’ equity of $46. Thus, as of June 30, 2016, the Company did not meet the minimum of $2.5 million in stockholders’ equity required for continued listing on the Nasdaq Capital Market under Listing Rule 5550(b)(1), which is one of the alternative tests for continued listing on The Nasdaq Capital Market. Additionally, as of June 30, 2016, the Company did not meet the other alternative tests of market value of listed securities or net income from continuing operations under Listing Rule 5550(b) and therefore, was no longer in compliance with the continued listing rules. As of August 15, 2016, the Company is not in receipt of any communications from The Nasdaq Stock Market LLC (“Nasdaq”) regarding its non-compliance. The Company’s deficiency has no immediate effect on the listing of the Company’s shares of Class A common stock on Nasdaq. The deficiency is primarily the result of the Company’s redemptions of non-controlling interests (included as equity in the Company’s financial statements) for the six months ended June 30, 2016 of $2,717, coupled with a net operating loss for the six months ended June 30, 2016 of $2,749.

As disclosed in Note 17 to the accompanying consolidated financial statements, on August 15, 2016, the Company, through its subsidiary, Comstock Investors X, L.C. (“Investors X”), entered into subscription agreements with certain accredited investors, pursuant to which the subscribers purchased membership interests in Investors X for an aggregate capital raise of $14,500. Proceeds from the Investors X offering are to be used to provide the equity financing for the Company’s Townes at Totten Mews project, consisting of 40 townhomes in Washington, D.C., and the Company’s The Towns at 1333 project, consisting of 18 townhomes in City of Alexandria, Virginia (the “Projects”), scheduled for acquisition, development and construction activities commencing in the coming months. With completion of the Investors X offering as of August 15, 2016, the Company has regained compliance with the minimum stockholders’ equity requirement of $2.5 million for continued listing under Listing Rule 5550(b)(1). The Company believes the actions it has undertaken have addressed the deficiencies noted above. However, there can be no assurances that the Company will maintain in compliance. If the Company is unsuccessful in its efforts to maintain compliance, a delisting of our common stock could adversely affect the market liquidity of our common stock, our ability to obtain financing and our ability to fund our operations. See additional risk factors disclosed under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2015.

Use of Estimates

Use of Estimates

Our financial statements have been prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts for the reporting periods. We base these estimates and judgments on historical experience and on various other factors that we believe to be reasonable under the circumstances. We evaluate these estimates and judgements on an ongoing basis. Actual results may differ from those estimates under different assumptions or conditions.

Recently Issued Accounting Standards

Recently Issued Accounting Standards

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (“ASU 2016-02”). The core principle of the standard is that a lessee should recognize the assets and liabilities that arise from leases. A lessee should recognize in its statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. ASU 2016-02 is effective for public companies for annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact this new standard will have on our consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-07, Investments – Equity Method and Joint Ventures (“ASU 2016-07”). The amendments in this ASU require, among other items, that an equity method investor add the cost of acquiring an additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting, as well as eliminates certain other existing requirements. ASU 2016-07 is effective for all companies for annual reporting periods beginning after December 15, 2016 and interim periods within those fiscal years. The adoption of this standard is not expected to have a material impact on our consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (“ASU 2016-08”). The core principle of the standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2016-08 is effective for public companies for annual reporting periods beginning after December 15, 2017, and early adoption is permitted. We are currently evaluating the impact this new standard will have on our consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (“ASU 2016-09”). The standard simplifies and clarifies certain aspects of share-based payment accounting and presentation. ASU 2016-09 is effective for public companies for annual reporting periods beginning after December 15, 2016 and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact this new standard will have on our consolidated financial statements.

We assessed other accounting pronouncements issued or effective during the six months ended June 30, 2016 and deemed they were not applicable to us and are not anticipated to have a material effect on our consolidated financial statements.

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Real Estate Inventories (Tables)

6 Months Ended

Jun. 30, 2016

Real Estate [Abstract]

Summary of Real Estate Held for Development and Sale

After impairments and write-offs, real estate held for development and sale consists of the following:

	June 30, 2016		December 31, 2015
Land and land development costs	$	18,909	$	22,896
Cost of construction (including capitalized interest and real estate taxes)		16,005		15,327
	$	34,914	$	38,223

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Warranty Reserve (Tables)

6 Months Ended

Jun. 30, 2016

Guarantees [Abstract]

Summary of Warranty Reserve Activity Included in Accounts Payable and Accrued Liabilities within the consolidated balance sheets

The following table is a summary of warranty reserve activity which is included in accounts payable and accrued liabilities within the consolidated balance sheets:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
Balance at beginning of period	$	314		$	362		$	312		$	492
Additions		42			50			86			92
Releases and/or charges incurred		(62	)		(118	)		(104	)		(290	)
Balance at end of period	$	294		$	294		$	294		$	294

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Capitalized Interest and Real Estate Taxes (Tables)

6 Months Ended

Jun. 30, 2016

Text Block [Abstract]

Summary of Interest Incurred and Capitalized and Interest Expensed for Units Settled

The following table is a summary of interest and real estate taxes incurred and capitalized and interest and real estate taxes expensed for units settled:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Total interest incurred and capitalized	$	857	$	866	$	1,593	$	1,627
Total real estate taxes incurred and capitalized		95		121		117		189
Total interest and real estate taxes incurred and capitalized	$	952	$	987	$	1,710	$	1,816
Interest expensed as a component of cost of sales	$	414	$	376	$	706	$	756
Real estate taxes expensed as a component of cost of sales		52		54		101		92
Interest and real estate taxes expensed as a component of cost of sales	$	466	$	430	$	807	$	848

Summary of Interest and Real Estate Taxes Expensed in Consolidated Statements of Operations

The following is a breakdown of the interest and real estate taxes expensed in the consolidated statements of operations for the periods presented:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Interest incurred and expensed from entity level borrowings	$	304	$	154	$	512	$	317
Interest incurred and expensed for inactive projects		—		—		5		4
Real estate taxes incurred and expensed for inactive projects		2		2		5		5
	$	306	$	156	$	522	$	326

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Other Assets (Tables)

6 Months Ended

Jun. 30, 2016

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Summary of Other Assets

Other assets consist of the following:

	June 30,			December 31,
	2016			2015
Restricted escrow deposits	$	—		$	37
Deferred financing cost		860			1,259
Deposits on land purchase options		1,035			760
Loan commitment		1,286			1,286
Other		3,007			2,695
		6,188			6,037
Less : accumulated amortization		(1,296	)		(1,522	)
	$	4,892		$	4,515

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Segment Disclosures (Tables)

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment Reporting Information

The following table includes the Company’s three reportable segments of Homebuilding, Multi-family, and Real Estate Services. Each of these segments operates within the Company’s single Washington, D.C. area reportable geographic segment.

						Real
						Estate
	Homebuilding			Multi-family		Services		Total
Three Months Ended June 30, 2016
Gross revenue	$	9,699		$	—	$	279	$	9,978
Gross profit		514			—		126		640
Net (loss) income		(1,587	)		—		126		(1,461	)
Depreciation and amortization		49			—		—		49
Interest expense		304			—		—		304
Total assets		47,134			—		205		47,339
Three Months Ended June 30, 2015
Gross revenue	$	12,115		$	—	$	449	$	12,564
Gross profit		1,521			—		261		1,782
Net (loss) income		(535	)		—		261		(274	)
Depreciation and amortization		94			—		—		94
Interest expense		154			—		—		154
Total assets		61,799			—		210		62,009
Six Months Ended June 30, 2016
Gross revenue	$	19,222		$	—	$	462	$	19,684
Gross profit		1,392			—		218		1,610
Net (loss) income		(2,967	)		—		218		(2,749	)
Depreciation and amortization		104			—		—		104
Interest expense		517			—		—		517
Total assets		47,134			—		205		47,339
Six Months Ended June 30, 2015
Gross revenue	$	22,125		$	—	$	756	$	22,881
Gross profit		2,941			—		403		3,344
Net (loss) income		(1,345	)		—		403		(942	)
Depreciation and amortization		205			—		—		205
Interest expense		321			—		—		321
Total assets		61,799			—		210		62,009

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Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2016

Related Party Transactions [Abstract]

Future Minimum Lease Payments

The Company leases its corporate headquarters from an affiliated entity that is wholly-owned by our Chief Executive Officer. Future minimum lease payments under this lease are as follows:

2016	$	167
2017		167
Total	$	334

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Unconsolidated Joint Venture (Tables)

6 Months Ended

Jun. 30, 2016

Equity Method Investments and Joint Ventures [Abstract]

Summarized Financial Information for Unconsolidated Joint Venture

Summarized financial information for the unconsolidated joint venture is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Statement of Operations:
Total net revenue	$	45	$	98	$	90	$	172
Total expenses		29		28		58		65
Net income	$	16	$	70	$	32	$	107
Comstock Holding Companies, Inc. share of net income	$	8	$	35	$	16	$	54

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Credit Facilities (Tables)

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Summary of Notes Payable

Notes payable consisted of the following:

	June 30, 2016		December 31, 2015
Construction revolvers	$	6,039	$	5,832
Development and acquisition notes		10,827		13,833
Mezzanine notes		1,400		1,367
Line of credit		3,580		3,791
Total secured notes		21,846		24,823
Unsecured financing		1,336		1,548
Notes payable, unsecured, net of $2.3 million discount		15,692		19,028
Total notes payable	$	38,874	$	45,399

Maturities and/or Curtailment Obligations of All Borrowings

As of June 30, 2016, maturities and/or curtailment obligations of all borrowings are as follows:

2016	$	12,707
2017		23,880
2018		2,287
Total	$	38,874

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Fair Value Disclosures (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Summary of Carrying Amount and Fair Value of Fixed and Floating Rate Debt

The following table summarizes the carrying amount and the corresponding fair value of fixed and floating rate debt:

	June 30, 2016		December 31, 2015
Carrying amount	$	38,874	$	45,399
Fair value	$	39,318	$	45,166

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Restricted Stock, Stock Options and Other Stock Plans (Tables)

6 Months Ended

Jun. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Consolidated Balance Sheets and Statements of Operations Line Items for Stock-Based Compensation Cost

vesting period. The following table reflects the consolidated balance sheets and statements of operations line items for stock-based compensation cost for the periods presented:

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Real estate inventories - Assets	$	4	$	8	$	9	$	17
General and administrative - Expenses		15		59		41		135
	$	19	$	67	$	50	$	152

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Organization and Basis of Presentation - Additional Information (Detail) $ in Thousands				3 Months Ended		6 Months Ended
	Aug. 15, 2016 USD ($) Townhomes	Jul. 20, 2016	Sep. 25, 2015	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	Dec. 31, 2015 USD ($)
Organization And Basis Of Presentation [Line Items]
Reverse stock split, Conversion Ratio			0.143
Reverse stock split, description						On September 25, 2015, the Company effected a 1-for-7 reverse stock split of its issued and outstanding shares of Class A common stock and Class B common stock.
Credit facilities and project related loans, maturing during the remainder of 2016				$ 12,707		$ 12,707
Maturity date						Dec. 31, 2016
Stockholders' equity				46		$ 46		$ 5,441
Redemption of non-controlling interests						2,717
Operating loss				1,461	$ 274	2,749	$ 942
Nasdaq Stock Market LLC [Member]
Organization And Basis Of Presentation [Line Items]
Minimum stockholders' equity required for continued listing				2,500		$ 2,500
Subsequent Events [Member]
Organization And Basis Of Presentation [Line Items]
Minimum stockholders' equity required for continued listing	$ 2,500
Subsequent Events [Member] | Totten Mews Project [Member] | Washington, D.C. [Member]
Organization And Basis Of Presentation [Line Items]
Number of townhomes | Townhomes	40
Subsequent Events [Member] | 1333 Project [Member] | Virginia [Member]
Organization And Basis Of Presentation [Line Items]
Number of townhomes | Townhomes	18
Subsequent Events [Member] | Comstock Investors X, L.C. [Member] | Private Placement [Member]
Organization And Basis Of Presentation [Line Items]
Aggregate capital raise	$ 14,500
Construction Revolvers [Member] | Yorkshire Credit Facility [Member]
Organization And Basis Of Presentation [Line Items]
Maturity date						Jul. 23, 2016
Credit facility outstanding				$ 200		$ 200
Construction Revolvers [Member] | Subsequent Events [Member] | Yorkshire Credit Facility [Member]
Organization And Basis Of Presentation [Line Items]
Maturity date		Oct. 23, 2016

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Real Estate Inventories - Summary of Real Estate Held for Development and Sale (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Real Estate Properties [Line Items]
Real estate inventories	$ 34,914	$ 38,223
Land and Land Development Costs [Member]
Real Estate Properties [Line Items]
Real estate inventories	18,909	22,896
Cost of Construction (Including Capitalized Interest and Real Estate Taxes) [Member]
Real Estate Properties [Line Items]
Real estate inventories	$ 16,005	$ 15,327

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Warranty Reserve - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2016
Guarantees [Abstract]
Period for which warranty claims expected to arise	1 year
Period for which warranty claims expected to arise under statutorily period	2 years

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Warranty Reserve - Summary of Warranty Reserve Activity Included in Accounts Payable and Accrued Liabilities within the consolidated balance sheets (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Guarantees [Abstract]
Balance at beginning of period	$ 314	$ 362	$ 312	$ 492
Additions	42	50	86	92
Releases and/or charges incurred	(62)	(118)	(104)	(290)
Balance at end of period	$ 294	$ 294	$ 294	$ 294

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Capitalized Interest and Real Estate Taxes - Summary of Interest Incurred and Capitalized and Interest Expensed for Units Settled (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Real Estate Investment Property, at Cost [Abstract]
Total interest incurred and capitalized	$ 857	$ 866	$ 1,593	$ 1,627
Total real estate taxes incurred and capitalized	95	121	117	189
Total interest and real estate taxes incurred and capitalized	952	987	1,710	1,816
Interest expensed as a component of cost of sales	414	376	706	756
Real estate taxes expensed as a component of cost of sales	52	54	101	92
Interest and real estate taxes expensed as a component of cost of sales	$ 466	$ 430	$ 807	$ 848

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Capitalized Interest and Real Estate Taxes - Summary of Interest and Real Estate Taxes Expensed in Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Real Estate Investment Property, at Cost [Abstract]
Interest incurred and expensed from entity level borrowings	$ 304	$ 154	$ 512	$ 317
Interest incurred and expensed for inactive projects			5	4
Real estate taxes incurred and expensed for inactive projects	2	2	5	5
Interest expense real estate taxes and indirect costs related to inactive projects attributable to discontinued operations	$ 306	$ 156	$ 522	$ 326

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Other Assets - Summary of Other Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Restricted escrow deposits		$ 37
Deferred financing cost	$ 860	1,259
Deposits on land purchase options	1,035	760
Loan commitment	1,286	1,286
Other	3,007	2,695
Other assets, gross	6,188	6,037
Other Assets, accumulated amortization	(1,296)	(1,522)
Other assets	$ 4,892	$ 4,515

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Loss Per Share - Additional Information (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Options/Warrants/Awards excluded from the computation of dilutive earnings per share	0		0
Restricted Stock Awards [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Options/Warrants/Awards excluded from the computation of dilutive earnings per share		36		47
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Options/Warrants/Awards excluded from the computation of dilutive earnings per share				59
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Options/Warrants/Awards excluded from the computation of dilutive earnings per share				5

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Segment Disclosures - Additional information (Detail)	6 Months Ended
	Jun. 30, 2016 Unit Segment
Segment Reporting Information [Line Items]
Number of operating segments | Segment	3
Multi-Family Segment [Member]
Segment Reporting Information [Line Items]
Projects units minimum	75
Projects units maximum	200

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Segment Disclosures - Segment Reporting Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Segment Reporting Information [Line Items]
Gross revenue	$ 9,978	$ 12,564	$ 19,684	$ 22,881
Gross profit	640	1,782	1,610	3,344
Net (loss) income	(1,461)	(274)	(2,749)	(942)
Depreciation and amortization	49	94	104	205
Interest expense	304	154	517	321
Total assets	47,339	62,009	47,339	62,009	$ 58,478
Homebuilding [Member]
Segment Reporting Information [Line Items]
Gross revenue	9,699	12,115	19,222	22,125
Gross profit	514	1,521	1,392	2,941
Net (loss) income	(1,587)	(535)	(2,967)	(1,345)
Depreciation and amortization	49	94	104	205
Interest expense	304	154	517	321
Total assets	47,134	61,799	47,134	61,799
Real Estate Services [Member]
Segment Reporting Information [Line Items]
Gross revenue	279	449	462	756
Gross profit	126	261	218	403
Net (loss) income	126	261	218	403
Total assets	$ 205	$ 210	$ 205	$ 210

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Income Tax - Additional Information (Detail) - USD ($)		3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Tax Examination [Line Items]
Tax provision expense (benefit)		$ 32,000	$ 57,000	$ 57,000	$ (13,000)
Deferred income tax benefit				(7,000)	90,000
Accruals related to uncertainties tax positions	$ 0	$ 0	$ 0	$ 0	0
New Hampshire Avenue, LLC [Member]
Income Tax Examination [Line Items]
Income tax expense (benefit)					108,000
Deferred income tax benefit					$ 121,000
Effective tax rate related to statutory tax	(35.00%)		3.00%		1.00%
Minimum [Member]
Income Tax Examination [Line Items]
Tax year remain subject to examination				2012
Maximum [Member]
Income Tax Examination [Line Items]
Tax year remain subject to examination				2015

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Commitments and Contingencies - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Commitment And Contingencies [Line Items]
Letter of credit, amount	$ 1,900,000	$ 3,700,000
Amounts drawn against outstanding letters of credit or performance bond	0	0
Restricted Escrow Deposits	1,100,000		$ 1,000,000
Performance Bonds [Member]
Commitment And Contingencies [Line Items]
Outstanding performance and payment of bonds	$ 4,300,000	$ 6,000,000

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Related Party Transactions - Future Minimum Lease Payments (Detail) $ in Thousands	Jun. 30, 2016 USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2016	$ 167
2017	167
Total	$ 334

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Related Party Transactions - Additional Information (Detail) - USD ($)				3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 29, 2015	May 12, 2015	Oct. 17, 2014	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Mar. 30, 2016	Dec. 18, 2014
Related Party Transaction [Line Items]
Debt instrument, initial principal amount				$ 38,874,000		$ 38,874,000		$ 45,399,000
Outstanding borrowings				$ 15,692,000		$ 15,692,000		$ 19,028,000
Preferred stock par value				$ 0.01		$ 0.01		$ 0.01
Series B Preferred Stock [Member]
Related Party Transaction [Line Items]
Paid-in-kind dividends on preferred stock, number of shares				17,221		34,437
Paid-in-kind dividends on preferred stock, liquidation value				$ 86,000		$ 172,000
Comstock Asset Management, L.C. [Member]
Related Party Transaction [Line Items]
Total payments made under lease agreement				81,000	$ 79,000	162,000	$ 158,000	$ 158,000
Comstock Asset Management, L.C. [Member] | Accounts Payable and Accrued Liabilities [Member]
Related Party Transaction [Line Items]
Straight-line rent payable				19,000		19,000		24,000
Comstock Asset Management, L.C. [Member] | Trade Receivables [Member]
Related Party Transaction [Line Items]
Trade receivables				203,000		203,000		$ 81,000
Comstock Asset Management, L.C. [Member] | Services and out of Pocket Expenses Incurred [Member] | Revenue Other [Member]
Related Party Transaction [Line Items]
Services and out-of-pocket expenses incurred				279,000	220,000	462,000	373,000
Comstock Development Services [Member]
Related Party Transaction [Line Items]
Credit facility outstanding			$ 10,000,000						$ 3,000,000
Other Purchasers [Member]
Related Party Transaction [Line Items]
Credit facility outstanding			6,200,000
Comstock Growth Fund [Member]
Related Party Transaction [Line Items]
Interest payments				400,000	400,000	$ 800,000	800,000
Comstock Growth Fund [Member] | Class A [Member]
Related Party Transaction [Line Items]
Number of warrants outstanding						76		76
Aggregate fair value of warrants issued				433,000		$ 433,000		$ 433,000
Comstock Growth Fund [Member] | Private Placement [Member] | Class A [Member]
Related Party Transaction [Line Items]
Number of shares issued		226,857
Comstock Growth Fund [Member] | Notes Payable, Other Payables [Member]
Related Party Transaction [Line Items]
Credit facility outstanding				16,200,000		16,200,000
Debt instrument, initial principal amount			10,000,000
Maximum borrowing amount			$ 20,000,000							$ 25,000,000
Additional aggregate principal loan amount						$ 6,200,000
Debt instrument, term			3 years
Debt instrument, interest rate description						LIBOR
Loan annual principal repayment, percentage			10.00%
First principal curtailment paid				1,600,000
Comstock Growth Fund [Member] | Unsecured Notes Payable To Affiliate [Member]
Related Party Transaction [Line Items]
Outstanding borrowings				12,600,000		$ 12,600,000		14,100,000
Interest payments				400,000	$ 400,000	800,000	$ 800,000
Comstock Growth Fund [Member] | LIBOR Rate [Member] | Notes Payable, Other Payables [Member]
Related Party Transaction [Line Items]
Debt instrument, spread variable rate			9.75%
Comstock Growth Fund [Member] | Floor Rate [Member] | Notes Payable, Other Payables [Member] | Minimum [Member]
Related Party Transaction [Line Items]
Debt instrument, floor interest rate			10.00%
Comstock Growth Fund II, L.C. [Member]
Related Party Transaction [Line Items]
Debt instrument, initial principal amount									$ 3,000,000
Comstock Growth Fund II, L.C. [Member] | Notes Payable, Other Payables [Member]
Related Party Transaction [Line Items]
Debt instrument, initial principal amount	$ 5,000,000
Maximum borrowing amount	$ 10,000,000
Debt instrument, term	2 years
Debt instrument, floor interest rate	10.00%
Outstanding borrowings				$ 3,100,000		$ 3,100,000		$ 5,000,000
Line of credit facility additional extension period	1 year
Line of credit facility extension fees	$ 10,000
Debt instrument, interest payment terms						Interest payments will be accrued and paid in-kind monthly for the first year, and then paid current monthly in arrears beginning December 31, 2016.
Origination fee, percent	1.00%
Origination fee, aggregate amount	$ 100,000
Maintenance fee of average outstanding balance of loan on quarterly basis	0.25%
Stonehenge [Member]
Related Party Transaction [Line Items]
Original principal amount	$ 4,500,000
Principal amount outstanding plus all accrued but unpaid interest	$ 3,861,000
Stonehenge [Member] | Series B Preferred Stock [Member]
Related Party Transaction [Line Items]
Shares issued upon conversion of debt	772,210
Preferred stock par value	$ 0.01
Preferred stock redemption price	$ 5.00
Preferred stock dividend rate, percentage	8.75%

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Note Receivable - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Note receivable originated with third party					$ 180
Maturity date of note receivable			Sep. 02, 2019
Fixed interest rate			6.00%
Outstanding balance of note receivable	$ 124		$ 124		$ 141
Monthly installments of principal and interest on debt instrument			3
Other income, net [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	$ 2	$ 2	$ 4	$ 5

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Variable Interest Entity - Additional Information (Detail)		1 Months Ended			6 Months Ended
	Mar. 14, 2013 USD ($) Unit Townhomes shares	Jun. 30, 2015 USD ($) Unit	Dec. 31, 2013 USD ($) Townhomes shares	Mar. 31, 2013 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($) Unit	Dec. 31, 2015 USD ($)	Sep. 27, 2012 Unit	Aug. 23, 2012 Unit
Variable Interest Entity [Line Items]
Profit distributed					$ 2,717,000	$ 1,100,000
Amount paid for membership interest in private placement				$ 7,300,000
Total liabilities of VIEs					11,800,000		$ 13,000,000
Total assets of VIEs					18,600,000		$ 22,700,000
Maryland [Member]
Variable Interest Entity [Line Items]
Number of townhomes | Townhomes	36
Number of multi-family units | Unit	117
Washington, D.C. [Member]
Variable Interest Entity [Line Items]
Number of townhomes | Townhomes	73
Number of single family units | Unit	38
Virginia [Member]
Variable Interest Entity [Line Items]
Number of townhomes | Townhomes	110
Number of single family units | Unit	19
New Hampshire Avenue, LLC [Member]
Variable Interest Entity [Line Items]
Number of projects | Unit									111
Profit distributed					1,900,000	1,100,000
Comstock Eastgate, L.C. [Member]
Variable Interest Entity [Line Items]
Number of projects | Unit								66
Preferred distribution					0	0
Comstock Investors VII, L.C [Member] | Class A [Member]
Variable Interest Entity [Line Items]
Number of warrants issued | shares	17
Aggregate fair value of warrants for investors	$ 146,000
Comstock Investors VIII, L.C [Member]
Variable Interest Entity [Line Items]
Preferred distribution					800,000	$ 0
Cumulative, compounded, preferred return rate			20.00%
Percentage of cumulative cash on cash return			20.00%
Comstock Investors VIII, L.C [Member] | Maryland [Member]
Variable Interest Entity [Line Items]
Number of townhomes | Townhomes			45
Comstock Investors VIII, L.C [Member] | Virginia [Member]
Variable Interest Entity [Line Items]
Number of townhomes | Townhomes			42
Comstock Investors VIII, L.C [Member] | Class A [Member]
Variable Interest Entity [Line Items]
Number of warrants issued | shares			15
Aggregate fair value of warrants for investors			$ 131,000
Comstock Investors VIII, L.C [Member] | Subsidiaries [Member] | Private Placement [Member] | Class B [Member]
Variable Interest Entity [Line Items]
Initial aggregate principal amount up to capital raise			$ 4,000,000
Comstock Investors IX, L.C. [Member]
Variable Interest Entity [Line Items]
Preferred distribution					$ 0
Cumulative, compounded, preferred return rate		20.00%
Percentage of cumulative cash on cash return		20.00%
Comstock Investors IX, L.C. [Member] | Virginia [Member]
Variable Interest Entity [Line Items]
Number of single family units | Unit		35				35
Comstock Investors IX, L.C. [Member] | Subsidiaries [Member] | Private Placement [Member] | Class B [Member]
Variable Interest Entity [Line Items]
Initial aggregate principal amount up to capital raise		$ 2,500,000

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Unconsolidated Joint Venture - Additional Information (Detail) - Title Insurance Joint Venture [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Schedule of Equity Method Investments [Line Items]
Earnings from the unconsolidated joint venture	$ 8	$ 35	$ 16	$ 54
Collected total distributions from joint venture			$ 66	$ 35

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Unconsolidated Joint Venture - Summarized Financial Information for Unconsolidated Joint Venture (Detail) - Title Insurance Joint Venture [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Operations:
Total net revenue	$ 45	$ 98	$ 90	$ 172
Total expenses	29	28	58	65
Net income	16	70	32	107
Comstock Holding Companies, Inc. share of net income	$ 8	$ 35	$ 16	$ 54

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Credit Facilities - Summary of Notes Payable (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Total secured notes	$ 21,846	$ 24,823
Unsecured financing	1,336	1,548
Notes payable, unsecured, net of $2.3 million discount	15,692	19,028
Total notes payable	38,874	45,399
Construction Loans [Member] | Construction Revolvers [Member]
Debt Instrument [Line Items]
Total secured notes	6,039	5,832
Development and Acquisition Notes [Member]
Debt Instrument [Line Items]
Total secured notes	10,827	13,833
Mezzanine Notes [Member]
Debt Instrument [Line Items]
Total secured notes	1,400	1,367
Line of Credit [Member]
Debt Instrument [Line Items]
Total secured notes	$ 3,580	$ 3,791

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Credit Facilities - Summary of Notes Payable (Parenthetical) (Detail) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Debt Disclosure [Abstract]
Discount on unsecured notes payable to affiliates	$ 2.3	$ 2.3

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Credit Facilities - Maturities and/or Curtailment Obligations of All Borrowings (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Debt Disclosure [Abstract]
2016	$ 12,707
2017	23,880
2018	2,287
Total notes payable	$ 38,874	$ 45,399

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Credit Facilities - Additional Information (Detail) - USD ($)				3 Months Ended		6 Months Ended
	Jan. 08, 2016	Dec. 29, 2015	Oct. 17, 2014	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Mar. 30, 2016	Dec. 31, 2015	Dec. 18, 2014
Line of Credit Facility [Line Items]
Credit facilities and project related loans, maturing during the remainder of 2016				$ 12,707,000		$ 12,707,000
Outstanding secured debt				21,846,000		$ 21,846,000			$ 24,823,000
Line of credit maturity date						Dec. 31, 2016
Unsecured financing for period				1,336,000		$ 1,336,000			1,548,000
Debt instrument, initial principal amount				38,874,000		38,874,000			45,399,000
Outstanding borrowings for loan				$ 15,692,000		$ 15,692,000			$ 19,028,000
Comstock Development Services [Member]
Line of Credit Facility [Line Items]
Credit facility outstanding			$ 10,000,000					$ 3,000,000
Other Purchasers [Member]
Line of Credit Facility [Line Items]
Credit facility outstanding			6,200,000
Comstock Growth Fund [Member]
Line of Credit Facility [Line Items]
Interest rate				11.10%		11.10%			10.00%
Interest payments				$ 400,000	$ 400,000	$ 800,000	$ 800,000
Comstock Growth Fund II, L.C. [Member]
Line of Credit Facility [Line Items]
Debt instrument, initial principal amount								$ 3,000,000
Line of Credit [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity				4,000,000		4,000,000			$ 4,000,000
Credit facility outstanding				$ 3,600,000		$ 3,600,000			3,800,000
Interest rate floor				5.00%		5.00%
Debt instrument maturity description						This line of credit is secured by the first priority security interest in the Company's wholly owned subsidiaries' in the Washington D.C. metropolitan area and guaranteed by our Chief Executive Officer. The Company uses this line of credit to finance the predevelopment related expenses and deposits for current and future projects and bears a variable interest rate tied to a one-month LIBOR plus 3.25% per annum, with an interest rate floor of 5.0%.
Line of Credit [Member] | LIBOR Rate [Member]
Line of Credit Facility [Line Items]
Debt instrument spread variable rate						3.25%
Construction Loans [Member] | Construction Revolvers [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity				$ 39,600,000		$ 39,600,000			40,500,000
Unused construction loan commitments				$ 33,600,000		$ 33,600,000			$ 34,700,000
Debt instrument, interest rate description						Interest rates charged under these facilities include the London Interbank Offered Rate ("LIBOR") and prime rate pricing options, subject to minimum interest rate floors.
Outstanding construction revolving facilities				4.70%		4.70%			4.80%
Credit facility outstanding				$ 6,000,000		$ 6,000,000			$ 5,800,000
Maturity range, start date						2016-09
Maturity range, end date						2018-03
Outstanding secured debt				$ 6,039,000		$ 6,039,000			$ 5,832,000
Unsecured Note [Member]
Line of Credit Facility [Line Items]
Debt instrument, interest rate description						LIBOR rate plus 2.2%
Interest rate				2.60%		2.60%			2.50%
Debt instrument, term						10 years
Debt instrument maturity date						Dec. 28, 2018
Unsecured Note [Member] | LIBOR Rate [Member]
Line of Credit Facility [Line Items]
Debt instrument spread variable rate						2.20%
Development and Acquisition Notes [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity				$ 37,800,000		$ 37,800,000			$ 37,800,000
Outstanding construction revolving facilities				4.70%		4.70%			4.70%
Maturity range, start date						2016-07
Maturity range, end date						2018-03
Outstanding secured debt				$ 10,827,000		$ 10,827,000			$ 13,833,000
Development and Acquisition Notes [Member] | Minimum [Member] | LIBOR and Prime Rate Pricing Options [Member]
Line of Credit Facility [Line Items]
Interest rate floor				4.25%		4.25%
Development and Acquisition Notes [Member] | Maximum [Member] | LIBOR and Prime Rate Pricing Options [Member]
Line of Credit Facility [Line Items]
Interest rate floor				5.50%		5.50%
Second and Third Mezzanine Notes [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity				$ 1,100,000		$ 1,100,000
Interest rate				12.00%		12.00%
Interest rate paid on a monthly basis						6.00%
Interest rate accrued and paid on maturity						6.00%
Second and Third Mezzanine Notes [Member] | Construction Revolvers [Member]
Line of Credit Facility [Line Items]
Debt instrument maturity period description						We are in active discussions with our lenders seeking long-term extensions with respect to our loans and credit facilities maturing in 2016.
Credit facility outstanding				$ 1,200,000		$ 1,200,000			1,100,000
Notes Payable, Other Payables [Member] | Comstock Growth Fund [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity			$ 20,000,000							$ 25,000,000
Debt instrument, interest rate description						LIBOR
Credit facility outstanding				16,200,000		$ 16,200,000
Interest rate floor			10.00%
Debt instrument, term			3 years
Debt instrument, initial principal amount			$ 10,000,000
Loan annual principal repayment, percentage			10.00%
First principal curtailment paid				1,600,000
Notes Payable, Other Payables [Member] | Comstock Growth Fund [Member] | LIBOR Rate [Member]
Line of Credit Facility [Line Items]
Debt instrument spread variable rate			9.75%
Notes Payable, Other Payables [Member] | Comstock Growth Fund II, L.C. [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 10,000,000
Debt instrument, term		2 years
Debt instrument, initial principal amount		$ 5,000,000
Outstanding borrowings for loan				3,100,000		$ 3,100,000			5,000,000
Line of credit facility additional extension period		1 year
Line of credit facility extension fees		$ 10,000
Debt instrument, interest rate		10.00%
Debt instrument, interest payment terms						Interest payments will be accrued and paid in-kind monthly for the first year, and then paid current monthly in arrears beginning December 31, 2016.
Origination fee, percent		1.00%
Origination fee, aggregate amount		$ 100,000
Maintenance fee of average outstanding balance of loan on quarterly basis		0.25%
Line of credit outstanding paid off	$ 5,000,000
Unsecured Notes Payable To Affiliate [Member] | Comstock Growth Fund [Member]
Line of Credit Facility [Line Items]
Outstanding borrowings for loan				12,600,000		$ 12,600,000			$ 14,100,000
Interest payments				$ 400,000	$ 400,000	$ 800,000	$ 800,000

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Fair Value Disclosures - Summary of Carrying Amount and Fair Value of Fixed and Floating Rate Debt (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Option, Quantitative Disclosures [Line Items]
Debt instrument outstanding balance	$ 38,874	$ 45,399
Unobservable Inputs (Level 3 Inputs) [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Debt instrument outstanding balance	38,874	45,399
Fair value	$ 39,318	$ 45,166

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Restricted Stock, Stock Options and Other Stock Plans - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average remaining contractual term of unexercised stock options			5 years
Unrecognized compensation cost related to stock issuances	$ 0.1		$ 0.1		$ 0.1
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued by the company	0	0	0	0
Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued by the company	0	0	0	0

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Restricted Stock, Stock Options and Other Stock Plans - Summary of Consolidated Balance Sheets and Statements of Operations Line Items for Stock-Based Compensation Cost (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share based compensation expense and capitalized amounts	$ 19	$ 67	$ 50	$ 152
Real Estate Inventories [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share based compensation cost capitalized	4	8	9	17
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share based compensation cost capitalized, expensed	$ 15	$ 59	$ 41	$ 135

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Subsequent Events - Additional Information (Detail) $ in Thousands				3 Months Ended	6 Months Ended
	Aug. 15, 2016 USD ($) shares	Jul. 29, 2016 USD ($) Lot	Jul. 20, 2016	Dec. 31, 2015 USD ($) Communities	Jun. 30, 2016 USD ($)
Subsequent Event [Line Items]
Maturity date					Dec. 31, 2016
Washington, D.C. [Member]
Subsequent Event [Line Items]
Impairment (reversal) charges				$ 1,400
Number of communities | Communities				1
Subsequent Events [Member] | Comstock Investors X, L.C. [Member] | Private Placement [Member]
Subsequent Event [Line Items]
Capital to be contributed by each member	$ 1,000
Proceeds from issuance of membership units	$ 2,500
Subsequent Events [Member] | Warrants Not Settleable in Cash [Member] | Comstock Investors X, L.C. [Member] | Private Placement [Member]
Subsequent Event [Line Items]
Number of shares issuable for each warrants | shares	100
Subsequent Events [Member] | Washington, D.C. [Member] | Settlement Agreement [Member]
Subsequent Event [Line Items]
Portion of land purchase deposit refundable		$ 700
Number of lots | Lot		4
Construction Revolvers [Member] | Yorkshire Credit Facility [Member]
Subsequent Event [Line Items]
Maturity date					Jul. 23, 2016
Credit facility outstanding					$ 200
Construction Revolvers [Member] | Subsequent Events [Member] | Yorkshire Credit Facility [Member]
Subsequent Event [Line Items]
Maturity date			Oct. 23, 2016