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Commitments and Contingencies (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]    
Commitments and Contingencies COMMITMENTS AND CONTINGENCIES
Letters of Credit and Performance Bonds
During the ordinary course of business, certain regulatory agencies and municipalities require the Company to post letters of credit or performance bonds related to development projects. As of December 31, 2020 and 2019, letters of credit and performance bonds outstanding were $9.8 million and $14.4 million, respectively. The Company does not believe that it is likely that any material claims will be made under a letter of credit or performance bond in the foreseeable future.

Warranties
Warranty activity, included in accrued expenses in our consolidated balance sheets, consists of the following (in thousands):
December 31, 2020December 31, 2019
Warranty accrual, beginning of period$3,840 $2,980 
Warranties issued4,553 3,358 
Changes in liability for existing warranties(26)37 
Settlements(1,960)(2,535)
Warranty accrual, end of period$6,407 $3,840 

Operating Leases
The Company has leases associated with office and design center space in Georgia, Texas, and Florida that, at the commencement date, have a lease term of more than 12 months and are classified as operating leases. The exercise of any extension options available in such operating lease contracts is not reasonably certain.
Operating lease cost of $1.3 million and $1.3 million for these leases for the years ended December 31, 2020 and 2019, respectively, is included in selling, general and administrative expense in the consolidated statements of income. For the years ended December 31, 2020 and 2019, cash paid for amounts included in the measurement of operating lease liabilities was $1.3 million and $1.2 million, respectively.
Rental expense for these leases totaled $1.2 million for the year ended December 31, 2018 and was included in selling, general and administrative expense in the consolidated statements of income.
As of December 31, 2020, the weighted-average remaining lease term and the weighted-average discount rate used in calculating our lease liabilities were 3.0 years and 4.85%, respectively.
The future annual undiscounted cash flows in relation to the operating leases and a reconciliation of such undiscounted cash flows to the operating lease liabilities recognized in the consolidated balance sheet as of December 31, 2020 are presented below (in thousands):

2021$1,093 
2022816 
20231,216 
202486 
202587 
Thereafter$66 
Total future lease payments$3,364 
Less: Interest$773 
Present value of lease liabilities$2,591 

The Company elected the short-term lease recognition exemption for all leases that, at the commencement date, have a lease term of 12 months or less and do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise. For such leases, the Company does not recognize right-of-use assets or lease liabilities and instead recognizes lease payments in the consolidated income statements on a straight-line basis. Short-term lease costs of $0.4 million for each of the years ended December 31, 2020 and 2019, related to such lease contracts are included in selling, general and administrative expense in the consolidated statements of income.

Legal Matters
Lawsuits, claims and proceedings may be instituted or asserted against us in the normal course of business. The Company is also subject to local, state and federal laws and regulations related to land development activities, house construction standards, sales practices, title company regulations, employment practices and environmental protection. As a result, the Company may be subject to periodic examinations or inquiry by agencies administering these laws and regulations.

The Company records an accrual for legal claims and regulatory matters when they are probable of occurring and a potential loss is reasonably estimable. The Company accrues for these matters based on facts and circumstances specific to each matter and revises these estimates when necessary.

In view of the inherent difficulty of predicting outcomes of legal claims and related contingencies, the Company generally cannot predict their ultimate resolution, related timing or eventual loss. If evaluations indicate loss contingencies that could be material are not probable, but are reasonably possible, the Company will disclose their nature with an estimate of the possible range of losses or a statement that such loss is not reasonably estimable. We believe that the disposition of legal claims and related contingencies will not have a material adverse effect on our results of operations and liquidity or on our financial condition.
  
Schedule of Warranty Activity
Warranties
Warranty activity, included in accrued expenses in our consolidated balance sheets, consists of the following (in thousands):
December 31, 2020December 31, 2019
Warranty accrual, beginning of period$3,840 $2,980 
Warranties issued4,553 3,358 
Changes in liability for existing warranties(26)37 
Settlements(1,960)(2,535)
Warranty accrual, end of period$6,407 $3,840 
  
Movement in Standard Product Warranty Accrual [Roll Forward]    
Standard Product Warranty Accrual, Increase (Decrease) for Preexisting Warranties $ (26) $ 37
Document Period End Date Dec. 31, 2020  
Letters of Credit Outstanding, Amount $ 9,800 14,400
Schedule of Annual Minimum Operating Lease Payments
The future annual undiscounted cash flows in relation to the operating leases and a reconciliation of such undiscounted cash flows to the operating lease liabilities recognized in the consolidated balance sheet as of December 31, 2020 are presented below (in thousands):

2021$1,093 
2022816 
20231,216 
202486 
202587 
Thereafter$66 
Total future lease payments$3,364 
Less: Interest$773 
Present value of lease liabilities$2,591 
  
Operating Leased Assets [Line Items]    
2021 $ 86  
2025 87  
Lessee, Operating Lease, Liability, to be Paid, after Year Five 66  
Operating Lease, Liability 2,591 3,564
2020 $ 1,216  
Operating Lease, Weighted Average Discount Rate, Percent 4.85%  
Lessee, Operating Lease, Liability, Undiscounted Excess Amount $ 773  
2018 1,093  
Total 3,364  
2019 816  
Short-term Lease, Cost $ 400  
Operating Lease, Weighted Average Remaining Lease Term 3 years  
Operating Lease, Payments $ 1,300  
Operating Lease, Expense 1,300  
Operating Leases, Rent Expense   1,200
Accrued Expenses    
Movement in Standard Product Warranty Accrual [Roll Forward]    
Warranty accrual, beginning of period 3,840 2,980
Warranties issued 4,553 3,358
Settlements (1,960) (2,535)
Warranty accrual, end of period $ 6,407 $ 3,840