Commitments and Contingencies

6 Months Ended

Jun. 30, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Commitments and Contingencies

At June 30, 2011, the Company had outstanding approximately $65.7 million of completion bonds and standby letters of credit, some of which were issued to various local governmental entities that expire at various times through December 2016. Included in this total are: (1) $24.0 million of performance and maintenance bonds and $26.7 million of performance letters of credit that serve as completion bonds for land development work in progress (including the Company's $0.1 million share of our Unconsolidated LLCs' letters of credit and bonds); (2) $9.6 million of financial letters of credit, of which $2.2 million represent deposits on land and lot purchase agreements; and (3) $5.4 million of financial bonds.

As of June 30, 2011, the Company has identified approximately 90 homes that have been confirmed as having defective imported drywall installed by our subcontractors.  All of these homes are located in Florida.  Since 2009, the Company has accrued approximately $13.0 million for the repair of these homes. The remaining balance in this accrual is $1.3 million, which is included in Other liabilities on the Company's Unaudited Condensed Consolidated Balance Sheets. During the third quarter of 2010, the Company received a $2.4 million settlement for claims attributed to the defective drywall. The Company has made demand for additional reimbursement from manufacturers, suppliers, insurers and others for costs the Company has incurred and may incur in the future in connection with the defective drywall.

At June 30, 2011, the Company had sales agreements outstanding, some of which have contingencies for financing approval, to deliver 833 homes with an aggregate sales price of approximately $214.0 million. Based on our current housing gross margin, excluding the charge for impairment of inventory, less variable selling costs, less payments to date on homes in backlog, we estimate payments totaling approximately $104.4 million to be made in 2011 relating to those homes. At June 30, 2011, the Company also has options and contingent purchase agreements to acquire land and developed lots with an aggregate purchase price of approximately $139.8 million. Purchase of properties under these agreements is contingent upon satisfaction of certain requirements by the Company and the sellers.