Investment in Unconsolidated Joint Ventures

12 Months Ended

Dec. 31, 2016

Investment in Unconsolidated LLCs [Abstract]

Equity Method Investments Disclosure [Text Block]

Investment in Joint Venture Arrangements

The Company has periodically partnered with other land developers or homebuilders to share in the cost of land investment and development of a property through joint ownership and development agreements, joint ventures, and other similar arrangements. For such joint venture arrangements where a special purpose entity is established to own the property, we have determined that we do not have substantive control over any of these entities; therefore, they are recorded using the equity method of accounting. We believe the Company’s maximum exposure related to its investment in these joint venture arrangements as of December 31, 2016 is the total amount invested of $28.0 million which is reported as Investment in Joint Venture Arrangements on our Consolidated Balance Sheets, although we expect to invest further amounts in these joint venture arrangements as development of the properties progresses. Included in the Company’s Investment in Joint Venture Arrangements at December 31, 2016 and December 31, 2015 were $0.1 million and $0.4 million, respectively, of capitalized interest and other costs.

The Company evaluates its investment in joint venture arrangements for potential impairment on a quarterly basis. If the fair value of the investment (see Notes 1 and 3 of our Consolidated Financial Statements) is less than the investment’s carrying value, and the Company determines the decline in value was other than temporary, the Company writes down the investment to fair value.

Summarized condensed combined financial information for the joint venture arrangements that are included in the homebuilding segments as of December 31, 2016 and 2015 and for the years ended December 31, 2016, 2015 and 2014 is as follows:

Summarized Condensed Combined Balance Sheets:

	December 31,
(In thousands)	2016		2015
Assets:
Single-family lots, land and land development costs (a) (b)	$	30,794	$	53,754
Other assets	1,040		5,499
Total assets	$	31,834	$	59,253
Liabilities and partners’ equity:
Liabilities:
Notes payable	$	1,287	$	7,025
Other liabilities	2,723		2,190
Total liabilities	4,010		9,215
Partners’ equity:
Company’s equity (a) (b)	$	16,015	$	24,367
Other equity	11,809		25,671
Total partners’ equity	$	27,824	$	50,038
Total liabilities and partners’ equity	$	31,834	$	59,253

(a) For the years ended December 31, 2016 and 2015, impairment expenses and other miscellaneous adjustments totaling $0.5 million and $4.8 million, respectively, were excluded from the table above.

(b) For the years ended December 31, 2016 and 2015, the table above excludes the Company’s investment in joint development arrangements for which a special purpose entity was not established, totaling $12.5 million and $17.4 million, respectively.

Summarized Condensed Combined Statements of Operations:

	Year Ended December 31,
(In thousands)	2016		2015		2014
Revenue	$	5,995	$	5,800	$	2,424
Costs and expenses	5,849		3,527		1,147
Income	$	146	$	2,273	$	1,277

The Company’s total equity in the income relating to the above homebuilding joint venture arrangements was $0.5 million for 2016 and 2015, respectively, and $0.3 million for 2014.