Warranty Reserves (Tables)

6 Months Ended

Jun. 30, 2013

Warranty Reserves

Schedule of activity related to the entity's warranty reserves, which are included in accounts payable and other liabilities

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
	(in thousands)						(in thousands)
Warranty reserves, beginning of the period	$	1,091		$	752		$	1,077		$	840
Additions to reserves for new home deliveries(1)	279			104			$	436		$	137
Warranty costs paid	(141		)	(77		)	$	(232	)	$	(198	)
Adjustments related to pre-existing reserves(1)(2)	(27		)	(4		)	$	(79	)	$	(4	)
Warranty reserves, end of the period	$	1,202		$	775		$	1,202		$	775

(1) The net effect of $252 and $100 for the three months ended June 30, 2013 and June 30, 2012, respectively, are included in homebuilding cost of sales on the accompanying unaudited consolidated statements of operations. The net effect of $357 and $133 for the six months ended June 30, 2013 and June 30, 2012, respectively, are included in homebuilding cost of sales on the accompanying unaudited consolidated statements of operations.

(2) Adjustments related to pre-existing reserves relate to changes in our anticipated warranty payments on previously delivered homes.